The general schedule pay raise paid as of the first full pay period of the year—January 2-15 for most—should be reflected in pay distributions covering that period, which in most cases employees should be receiving in the days ahead.
While the raise averaged 2.7 percent, GS employees should remember that it varied by locality to vary by locality from 3.21 percent in the Seattle-Tacoma locality to 2.42 percent in the “rest of the U.S.” locality for areas outside the city areas with their own rates.
Blue-collar employees receive their raise at differing times of a fiscal year, including some getting raises retroactive to last October; they generally receive the same percentage as GS employees locally but there is a complex capping mechanism in place. SES members and those under other high-level pay systems do not get raises automatically but as a practical matter many agencies pay their performance-based raises at the start of the year.
Also taking effect as of the first pay period of the year are FEHB and FEDVIP premiums for the current plan year. Also, the pay distribution should reflect elections made for health care accounts, dependent care accounts or both under the flexible spending account program, and typically increases in FEGLI premiums linked to salary levels.
Also increasing automatically with a raise are TSP investments by those who invest on a percentage of salary basis; agency contributions under FERS likewise rise. For those who invest on a dollar amount basis, investments won’t rise unless they elect to increase that amount; for those under FERS, matching contributions won’t rise unless they do so, although the automatic 1 percent amount rises regardless.