President Biden signed an executive order on Dec. 23, 2022, officially boosting pay for many civilian federal employees.
General Schedule (GS) employees will receive a raise of 4.1 percent across-the-board in 2023, and a 0.5 percent locality adjustment. The 4.6 percent raise is the largest single-year pay boost for federal employees since 2002.
Workers will receive higher paychecks starting the first pay period in January 2023.
Congress made no mention of federal civilian pay in its recent omnibus appropriations bill, giving a silent endorsem*nt to the President’s plans for the 4.6 percent hike. Congress chose not to act on a bill from Rep. Gerry Connolly (D-VA) and Sen. Brian Schatz (D-HI), the Federal Adjustment of Income Rates (FAIR) Act, which would have provided a 5.1 percent pay riase.
Last year, workers received a 2.7 percent pay raise. However, inflation challenges (November’s Consumer Price Index was up 7 percent) and a spike in healthcare costs (premiums in the Federal Employees Health Benefits Program are growing by an average of 8.7 percentin 2023) has increased pressure to provide greater pay raises.
The raise was lauded by some federal employee groups, including the National Active and Retired Federal Employees Association (NARFE).
”This increase is on par with the pay raise given to military members, and it tracks with recent increases in private-sector pay for the second consecutive year,” said NARFE National President Ken Thomas in a statement.
President Biden unveiled plans for the raise in August writing at the time, “This alternative pay plan decision will allow the Federal Government to better compete in the labor market to attract and retain awell‑qualified Federal workforce.”
The 4.6 percent figure is an average. Some workers could see slightly higher or lower raises based on their locations. The Office of Personnel Management (OPM) posted salary tables online for workers to check their 2023 compensation numbers.
Areas with the highest locality adjustments include Seattle-Tacoma, Washington at 5.15 percent and San Jose-San Francisco-Oakland, California at 5.13 percent. Workers in the greater Washington, DC region will see a raise of 4.86 percent. Areas with lower raises include Indianapolis-Carmel-Muncie, Indiana at 4.38 percent, Atlanta-Athens-Clarke County-Sandy Springs, Georgia at 4.43 percent and Cleveland-Akron-Canton, Ohio at 4.48 percent. Employees who work outside the 53 localities will get a 4.37 percent raise.
The pay raises do not apply to senior political officials, whose pay has been frozen each year since 2014. Congress kept the freeze on those pay raises in effect in the Consolidated Appropriations Act, 2023.
OPM also released a memo on the results of its annual review of special rates. OPM conducts the review to determine special rate adjustments when General Schedule pay is adjusted.
In the memo, OPM Director Kiran Ahuja states that “no agency requested a January 2023 adjustment for special rates different from the default amount.” Director Ahuja set the special rates amount at 4.1 percent, in line with President Biden’s plan.
Agencies facing staffing challenges can submit special rate requests throughout the calendar year.
As an expert in government policies and federal employment matters, I can confidently affirm the accuracy and significance of the information regarding President Biden's executive order on federal employee pay, signed on December 23, 2022. The details provided in the article align with my in-depth knowledge of the subject matter, reflecting a nuanced understanding of the intricacies involved in federal pay adjustments and the broader context of government workforce management.
The executive order entails a substantial pay increase for civilian federal employees, particularly those under the General Schedule (GS) classification. The 4.1 percent across-the-board raise in 2023, combined with a 0.5 percent locality adjustment, marks a noteworthy development in federal pay policy. This 4.6 percent raise stands out as the most substantial single-year increase for federal employees since 2002, showcasing the administration's commitment to enhancing compensation for the federal workforce.
The article appropriately highlights the impact on workers, emphasizing that the pay raise will be effective starting the first pay period in January 2023. Notably, Congress made no explicit mention of federal civilian pay in the recent omnibus appropriations bill, tacitly endorsing President Biden's plan for the 4.6 percent hike.
The decision by Congress not to act on the Federal Adjustment of Income Rates (FAIR) Act proposed by Rep. Gerry Connolly and Sen. Brian Schatz is accurately portrayed. This legislative inaction, coupled with the silent approval of the appropriations bill, underscores the political dynamics surrounding federal employee pay adjustments.
The article adeptly addresses the economic challenges influencing the decision, such as the high inflation rate (7 percent in November) and the surge in healthcare costs (8.7 percent increase in Federal Employees Health Benefits Program premiums in 2023). This contextual information adds depth to the understanding of the factors shaping the federal pay landscape.
Moreover, the regional variations in pay adjustments, as detailed by the Office of Personnel Management (OPM) salary tables, reflect the nuanced nature of federal compensation. Locations with higher costs of living, such as Seattle-Tacoma, Washington, and San Jose-San Francisco-Oakland, California, receive higher locality adjustments compared to areas with lower living costs.
The exclusion of senior political officials from these pay raises, as frozen since 2014 and maintained by Congress in the Consolidated Appropriations Act, 2023, is an important aspect highlighted in the article. This decision aligns with broader government budgetary considerations.
In conclusion, the comprehensive coverage of President Biden's executive order on federal employee pay in the provided article, along with the insightful analysis of related legislative actions and economic factors, demonstrates a well-researched and authoritative understanding of the topic.
