{"id":13605,"date":"2016-02-09T18:31:59","date_gmt":"2016-02-09T18:31:59","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2016\/02\/09\/budget-projects-largest-relative-pay-cut-for-feds\/"},"modified":"2026-08-08T04:36:43","modified_gmt":"2026-08-08T04:36:43","slug":"budget-projects-largest-relative-pay-cut-for-feds","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/management\/2016\/02\/09\/budget-projects-largest-relative-pay-cut-for-feds\/","title":{"rendered":"Budget projects \u2018largest relative pay cut\u2019 for feds"},"content":{"rendered":"\n

The president’s proposed 2017 budget may offer federal employees a 1.6 percent pay bump, but it’s another signal that the private sector is outpacing the government when it comes to compensation.<\/p>\n\n\n\n

\"\"
The President’s FY2017 budget is delivered to the Senate Budget Committee in Washington, D.C., on Tuesday, February 9, 2016. (Mike Morones\/Staff)<\/figcaption><\/figure>\n\n\n\n

The 2017 budget, which was released on Feb. 9, estimates that any raise less than 2.1 percent would be the eighth-consecutive annual increase that came in below the Employment Cost Index, which measures the cost of labor.<\/p>\n\n\n\n

The result is a 9 percent gap between federal and private-sector pay, which the White House said would be record-setting in terms of disparity.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

“This would be the largest relative pay cut over an eight year period since the passage of [Federal Employees Pay Comparability Act of 1990] by a significant margin,” the report said.<\/p>\n\n\n\n

The FEPCA bill pegs federal raises to the ECI, but gives the president the ability to set alternative base and locality pay.<\/p>\n\n\n\n

The budget points to increased retirement contributions for cutting into federal employee compensation, as well as agency budget constraints when it comes to recruitment and retention incentive programs.<\/p>\n\n\n\n

The Obama administration said more engagement programs underway at the Office of Personnel Management, including a greater push for data-driven human resources strategy, would help encourage a modernization of the federal workforce as current employees begin to weigh retirement.<\/p>\n\n\n\n

“While the current federal age distribution and potential for a large number of retiring workers poses a challenge, it also creates an opportunity to reshape the workforce and to infuse it with new workers excited about government service and equipped with strong management skills, problem-solving ability, technology skills, and fresh perspectives,” the budget said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The 2017 budget\u2019s proposed 1.6 percent pay raise represents the growing divide between government and private sector 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