obama signing paper

Obama to Issue Fed Pay Raise Proposal This Month

By August 31st, feds will know what to expect for this year regarding a pay raise. That’s the cutoff point for the president, who is expected to propose a 1.6% across-the-board pay increase for civilian federal employees as outlined in his fiscal 2017 budget.

Should the president fail to meet this deadline and not inform Congress of his pay plan, an increase will still occur due to the 1990 Federal Employees Pay Comparability Act. FEPCA calculates the raise based on the change in the Employment Cost Index minus 0.5 percent, which for 2017, would be around 2.1%.

In 2016, federal employee received a 1.3% pay increase in addition to locality pay adjustments. Increases during the Obama presidency have been historically low and the president has been on the receiving end of criticism from the federal community because of this.

Meanwhile lawmakers in both chambers have introduced legislation to increase pay by 5.3%, but those bills are unlikely to move. However, prior to recess, the House did pass the fiscal 2017 Financial Services and General Government Appropriations Act, which would allow for a pay raise for federal workers next year. Congress does get the final word with regards to pay raises, but in recent years they have generally approved those in the president’s budget.

Posted in General News

Tags: pay raise, federal pay, President Obama, pay raise for federal employees, budget, FEPCA

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