(Molly Bruns, Headline USA) President Joe Biden issued an executive order implementing a 5.2% average pay raise for all federal workers in January 2024.
An initial proposal came out in March, endorsing a 4.7% raise across the board with a 0.5% increase in locality pay.
The March proposal included nearly $5.5 trillion in new taxes, which Biden claimed would reduce the U.S. budget deficit by $3 trillion in the next 10 years.
With several branches of the U.S. military facing serious recruitment struggles, service personnel are also expected to receive a 5.2% pay raise this year, according to the website Government Executive.
The raise marked the largest authorized raise since 1980, when President Jimmy Carter arranged for a 9.1% average pay raise.
Tens of thousands of federal employees will see a larger increase than predicted.
Recent changes to the locality pay system resulted in delays and larger payments for federal employees at all levels.
In 2022, the President’s Pay Agent—a federal group made up of management and budget directors—approved the creation of four new locality pay areas.
The group also decided to update the map of locality pay areas using data from the Office of Management and Budget, adding a hefty amount of information on several new locales and pay areas.
The massive wage hike still fell short of union expectations.
The National Active and Retired Federal Employees Association said the pay raise was necessary to keep government employees from shifting to the private sector for increased pay.
“Keeping up with private sector pay growth is essential to maintaining the federal government’s ability to recruit and retain a highly qualified and effective workforce,” NARFE National President William Schackelford said.
“While pay rates for public servants will still trail private-sector rates, a proposed average raise of 5.2% would ensure they will not fall further behind,” he added.
Government employment accounted for the second highest number of added jobs in November, after hospital and ambulatory care workers in the health sector.
The raise goes into effect for the first pay period of 2024, which for many is on Jan. 14.
