Congress plans to work only two more weeks after returning to work from its recess this week, likely leaving much business unfinished regarding federal employees at year’s end. However, inaction would clear the way for one important development, the first raise after three years of frozen salary rates. Under the complex formula for federal pay-setting, if no law is enacted by the end of the year to address the raise, an across-the-board increase of 1 percent will be paid by default effective with the first full pay period of January. President Obama earlier indicated his intention to pay that raise as an ‘alternative’ to a much higher raise that otherwise would be required in the absence of congressional action. The raise likely would be carried out by an executive order late in December. Meanwhile, a bipartisan bill has been offered in the House to assure that wage grade employees would get the same increase. Separate action is needed for them because the pay-setting law allowing for the raise by default deals only with the GS system.