The federal employees’ pay raise is just ahead as President Joe Biden signs an executive order that grants such good news.
Despite such good news, a poll revealed that most Americans’ income does not match the current inflation rate. (Photo: Inc. Magazine)
Federal Employees’ Pay Raise Next Year
President Joe Biden has issued an executive order that grants federal employees’ pay raise since Jimmy Carter’s administration. The federal employees’ pay rise in 2024 will be 5.2%, the highest since a 9.1% increase in 1980.
However, this federal employees’ pay raise comes amidst concerns from American citizens who blame increased government spending for rising inflation and a struggling economy.
A recent poll showed that 76% of Americans believe their income does not match the current inflation rate, and 56% believe inflation is directly linked to increased government spending.
The federal employees’ pay raise is 4.7% nationwide, with an additional 0.5% increase based on work location. In the San Francisco region, federal employees’ pay raise will see an extra 0.9%.
According to a published article by American Military News, aside from the federal employees’ pay raise, Military members will also receive a 5.2% increase under the National Defense Authorization Act.
While the pay raise for military members was authorized by both the House and Senate, the increase for federal government workers was announced through an executive order by President Biden.
The goal of the federal employees’ pay raise is to attract and retain a well-qualified workforce for the nation’s largest employer, the federal government.
Employment Cost Index
In a published article by KATU, the raise is based on the Employment Cost Index and is divided into two parts: a 4.7% across-the-board increase and an additional amount based on local salaries of comparable private-sector jobs.
Due to changes in the locality pay system, some federal employees may receive slightly larger raises. The locality pay program was established in 1990 to address the wage gap between federal and private-sector jobs.
Currently, federal employees earn 27.54% less than their private-sector counterparts with similar positions, and it would cost $22 billion to bridge this gap.
