{"id":27542,"date":"2024-03-11T19:45:50","date_gmt":"2024-03-11T19:45:50","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2024\/03\/11\/federal-pay-raise-would-cool-under-bidens-2025-budget-request\/"},"modified":"2026-08-08T05:08:35","modified_gmt":"2026-08-08T05:08:35","slug":"federal-pay-raise-would-cool-under-bidens-2025-budget-request","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/congress\/budget\/2024\/03\/11\/federal-pay-raise-would-cool-under-bidens-2025-budget-request\/","title":{"rendered":"Federal pay raise would cool under Biden\u2019s 2025 budget request"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">President Joe Biden pitched an average 2% pay raise for federal employees for 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If that takes effect, it\u2019d be significantly lower than the 5.2% pay raise<a href=\"https:\/\/www.federaltimes.com\/management\/pay-benefits\/2023\/12\/22\/federal-employees-cleared-for-52-pay-raise-in-2024\/#:~:text=Millions%20of%20federal%20employees%20will,The%20order%20finalized%20on%20Dec.\" target=\"_blank\"> awarded in January<\/a> of this year and the 4.6% in <a href=\"https:\/\/www.federaltimes.com\/management\/pay-benefits\/2023\/08\/02\/bidens-proposed-52-federal-pay-raise-is-safe-for-now\/\" target=\"_blank\">2023<\/a> but on par with what government workers received pre-pandemic and with projections that <a href=\"https:\/\/www.plan.be\/databases\/17-en-consumer_price_index_inflation_forecasts#:~:text=On%20the%20basis%20of%20these,2023%20and%209.59%25%20in%202022.\" target=\"_blank\">inflation will drop<\/a> to less than 2% next year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt illustrates the administration\u2019s continued strong commitment to the civil service, reflecting the need to attract the talent necessary to serve Americans and recognizing the fiscal constraints Federal agencies face,\u201d Biden said in his fiscal 2025 budget request on Monday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many federal agencies implemented this year\u2019s mandatory pay raise without 2024 funding. Still,<a href=\"https:\/\/www.federaltimes.com\/management\/pay-benefits\/2024\/01\/30\/lawmakers-make-an-early-pitch-for-74-federal-pay-raise-in-2025\/\" target=\"_blank\"> some Democrats in Congress <\/a>have already pitched a 7% pay bump for next year, arguing that feds still need to be made whole after years of high consumer prices and recruiting challenges plaguing IT and health care, leaving federal workers vastly underpaid relative the the private sector. Even under Biden, raises have come short of what some lawmakers and federal unions have argued is appropriate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In fact, it\u2019s only in the last two years that feds saw raises once again exceeding 3%. This year\u2019s pay increase was the largest since President Jimmy Carter\u2019s term. The last time there was a flat 2% pay raise was in 2010. In the decade that followed, pay raises hovered between 0% (during the second Obama administration) and 3%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cCivilian federal workers right now are working for 27.5% less than their private-sector counterparts,\u201d said American Federation of Government Employees National President Everett Kelley in a statement. \u201cA paltry, 2% raise for civilian federal employees will do very little to close that widening gap.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/fedlife\/2024\/01\/29\/biden-moves-to-help-federal-workers-on-anniversary-of-pay-equity-law\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"240\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1340865155.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Biden moves to help federal workers on anniversary of pay equity law<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">OPM is issuing a final rule to bar the government from considering a person\u2019s current or past pay when determining their salary for federal jobs.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The Federal Salary Council also suggests in its examination of the federal pay scale that the GS base pay increase in 2025 would have to be close to 4% in order <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/5\/5303\" target=\"_blank\">to comply with the Federal Employee Compensation Act. <\/a>But that rule is almost never followed because presidents have used their authority to circumvent it and offer a different rate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So while a pay raise of some kind is likely to materialize next year unless the president, or Congress, takes some action against it, it won\u2019t be clear for some time what exactly that figure will be.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The President\u2019s budget request also posed a <a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2024\/03\/budget_fy2025.pdf\" target=\"_blank\">4.5% pay raise for service members.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe are extremely disappointed in the way this budget turns its back on the longstanding practice of pay raise parity for civilian and military employees of the federal government,\u201d said Kelley.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the meantime, Biden acknowledged that pay adjustments cannot stop there.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/management\/pay-benefits\/2022\/08\/05\/why-do-federal-pay-raises-lag-the-private-sector\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"162\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/money-cut.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Why do federal pay raises lag the private sector?<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The federal budget proposal unveiled by the White House in March included an average pay increase of 4.6% for civilian federal workers, matching a planned military pay raise. Historically, with pay lagging in the federal sector, other factors including steady opportunities, competitive benefits and hybrid work to retain talent.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">\u201cIn addition to year-to-year pay increases, the administration is pursuing structural reforms to enhance the competitiveness of the federal pay system,\u201d the FY25 budget request said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Specifically, it mentions addressing pay compression experienced by workers who max out the payscale and see little monetary incentive to remain there. Pay caps imposed by statutes limit how much money federal employees can be paid. If those aren\u2019t adjusted to the times, the nature of the work or the collective education of the workforce, they can feel arbitrary, federal employees groups have said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Compared to 1950, the 2.2-million strong federal workforce is overall more highly compensated and more experienced than it used to be, explained perhaps by the fact that close to 30% of workers have masters degrees, compared to less than 15% in private industry.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1314\" height=\"834\" src=\"\/wp-content\/uploads\/2026\/08\/Screenshot-2024-03-11-at-2.55.03-PM.png.png\" alt=\"\" class=\"wp-image-79335\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Screenshot-2024-03-11-at-2.55.03-PM.png.png 1314w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Screenshot-2024-03-11-at-2.55.03-PM.png.png?resize=300,190 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Screenshot-2024-03-11-at-2.55.03-PM.png.png?resize=768,487 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Screenshot-2024-03-11-at-2.55.03-PM.png.png?resize=1024,650 1024w\" sizes=\"auto, (max-width: 1314px) 100vw, 1314px\" \/><figcaption class=\"wp-element-caption\">This graph from OPM and the White House show an almost complete shift from lower-grade to higher-grade types of work. (Graph: OPM\/President&#8217;s 2025 Budget Request)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Biden said the administration intends to review this for not just upper-echelon General Schedule employees, but also members of the senior executive service and blue-collar wage grade employees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The question is how. Last year\u2019s budget proposal made the same call to action. Members of the Government Managers Coalition requested an update on the status of those efforts in July from the Office of Personnel Management.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis is not a novel proposition,\u201d said the letter. \u201cBoth the Biden and Trump President\u2019s Pay Agents have recommended &#8230; that federal compensation reform is critically necessary.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Biden did point to some specific action items in the 2024 proposal, including increasing Executive Schedule official rates, removing current ceilings in the Federal Wage System, repealing pay limits on bonuses, differential pay, and other adjustments, and lifting special rate restrictions for cyber, STEM and health care workers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The 2025 pay raise would take effect Jan. 1.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Even under Biden, raises have come short of what some lawmakers and federal unions have argued is appropriate.<\/p>\n","protected":false},"author":7,"featured_media":79331,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":65,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[65,31,15,33],"tags":[],"coauthors":[3269],"class_list":["post-27542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget","category-home","category-management","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"XNMZ22E5LRA3VDA6VUQOX45VJA","arc_canonical_url":"\/management\/budget\/2024\/03\/11\/federal-pay-raise-would-cool-under-bidens-2025-budget-request\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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