2024 Federal Pay Increase : Key Details and Impacts

President Joe Biden has approved a 5.2% average pay raise for many civilian federal employees in 2024. However, this 5.2% is just an average, and the actual pay increases will vary based on where employees work due to locality pay differences.

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Biden's plan includes a 4.7% general raise for most federal employees on the General Schedule, plus an additional average 0.5% adjustment based on locality. This 0.5% adjustment is what causes the variations in pay raises.

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In 2024, some federal employees will see pay raises above the 5.2% average, while others will see slightly less. For example, pay raises will range from 4.89% in the Houston locality pay area to 5.7% in the Seattle-Tacoma locality pay area. This highlights the variations in the 2024 federal pay increase across different regions.

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Federal employees working in the National Capital Region will see a 5.31% raise in 2024.

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Locality pay, which started in 1990 through the Federal Employee Pay Comparability Act (FEPCA), aimed to close the wage gap between federal and private sector workers. The law intended to reduce this gap to 5% with substantial annual federal pay increases. However, since 1994, no president has fully applied the authorized amount. Years of not following FEPCA have led to significant issues with federal pay.

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In 2024, four new federal pay localities were added in California, Nevada, New York, and the Washington-Idaho area. Employees in these new localities will get bigger raises starting in 2024 and each year after, compared to the general "rest of U.S." pay area. This change is part of the 2024 federal pay increase.

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Are Federal Employees Getting Another Big Raise Next Year?

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Federal employees might get another big pay raise next year. The budget includes a proposed pay increase for government workers. If approved, this would be one of the largest raises in recent years. The raise would help offset inflation and make federal jobs more competitive with private sector jobs.

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Federal employees just received a 5% pay raise and can expect more improvements, including another significant pay increase next year. To learn more, Tom from the Federal Drive spoke with John Hatton, the Vice President for Policy and Programs at the National Active and Retired Federal Employees Association (NARFE).

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Feds get 7.4% pay raise under congressional Democrats' plan

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The Federal Adjustment of Income Rates (FAIR) Act, proposed by Rep. Gerry Connolly (D-Va.) and Sen. Brian Schatz (D-Hawaii), aims to give federal employees a 4.0% general pay raise and an average 3.4% increase in locality pay next year. The bill has 59 cosponsors, all Democrats, in the House.

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The FAIR Act has been introduced annually for nearly a decade with varying pay raise figures. Last year, it suggested an 8.7% increase, split between a 4.7% general raise and an average 4% locality pay bump.

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Although the bill rarely progresses, it is often referenced by progressive lawmakers and unions in budget discussions. President Biden’s pay raise proposal will be released with his budget plan soon.

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The bill's sponsors praised Biden for reversing years of stagnant wages under the Trump administration, highlighting his 4.6% average raise in 2023 and 5.2% this year. However, they argue more is needed.

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Rep. Connolly emphasized that federal employees, despite facing challenges like pay freezes and government shutdowns, have continued to serve the public faithfully. He views the FAIR Act as essential for fairly compensating them.

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Sen. Schatz noted that federal workers perform critical tasks, from food inspection to veteran care, and deserve appropriate pay. He believes the bill addresses years of wage stagnation.

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Labor and employee groups supported the bill, citing the need for competitive wages amid high inflation and a tight job market. Randy Erwin from the National Federation of Federal Employees highlighted the growing pay gap between federal and private sector workers.

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Doreen Greenwald of the National Treasury Employees Union said the proposal helps the government compete for skilled workers, while AFGE President Everett Kelley called for progress towards pay parity with the private sector.

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Craig Carter from the Federal Managers Association stressed that federal managers deserve respect and fair wages for their mandated duties.

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Connolly, Schatz Reintroduce FAIR Act to Give Feds a 7.4% Raise in 2025

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The Biden Administration has made efforts to address these issues by giving federal employees a 4.6% pay raise in 2023 and a 5.2% raise in 2024. However, these raises haven't kept up with the increasing costs of living and labor. The FAIR Act aims to correct this by providing federal employees with a 7.4% pay increase on average, helping to recover lost wages over the years. This adjustment benefits federal employees across every state and territory, serving constituents nationwide.

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In conclusion, the 2024 federal pay increase reflects a nuanced approach to addressing wage disparities through both general and locality-specific adjustments. While the average 5.2% raise signifies a significant step forward, varying locality adjustments illustrate efforts to align federal salaries more closely federal locality pay 2024 with regional cost-of-living realities. Looking ahead, proposed legislation such as the FAIR Act underscores ongoing efforts to enhance federal compensation, aiming to sustain competitiveness and equity across diverse employment landscapes amidst economic fluctuations and evolving workforce demands.