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Obama Makes 2.1 Percent Pay Raise a Reality

It’s official. Civilian federal employees will receive a 2.1 percent pay raise in 2017, thanks to an executive order issued last week.

After lawmakers gave military employees a 2.1 percent pay increase as part of the Defense authorization act, Obama raised his initial proposal of a 1.6 raise for civilians to 2.1 as well.

“In light of the decision of Congress to provide a 2.1 percent pay increase for military personnel in 2017 and reconsideration of current and projected economic conditions, I have concluded it would be appropriate to revise my original alternative plan for locality payments so that the total combined cost of the 1.0 percent across-the-board base pay increase and varying locality payments will be 2.1 percent of basic payroll, “ Obama said in a message to Congress announcing the higher percentage.

The new pay rates will go into effect for the first pay period beginning Jan. 1, 2017. The civilian raise is composed of a 1 percent raise across-the-board and a 1.1 percent locality pay raise. Thus, civilians’ actual pay increases will vary based on where they live.

The largest locality pay increases remain concentrated in major American cities, with the biggest boosts for California’s Bay area, the Washington-Baltimore-Arlington area (which also includes parts of Pennsylvania and West Virginia), and the New York-Newark, N.J. area (which includes parts of Connecticut and Pennsylvania), reports GovExec.

 

Image: Unsplash

Posted in General News

Tags: pay raise, federal pay, locality

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