In a letter sent to congressional leaders on Wednesday, the White House formally revealed its intentions to give civilian government employees a 4.6% pay boost in 2023.
The president’s alternative pay plan was described in the letter.
“Title 5, United States Code, lets me come up with alternative plans for pay adjustments for Federal employees covered under the General Schedule and other pay systems if I think that the increases that would normally happen aren’t right because of “a national emergency or economic conditions affecting the general welfare’.”
The increase of 4.6% is the same as the White House’s budget proposal from March.
Congress may enact legislation that would set a different amount for federal pay in 2023, but given past behavior; it is unlikely to do so.
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The Office of Personnel Management will publish the official 2023 federal pay tables in December. The White House will likely sign an executive order and release the final 2023 federal pay hike statistics.
Here’s the whole text of the president’s letter to the House of Representatives.
On August 31, 2022, a letter on the Alternative Plan for Federal Civilian Employees Pay Adjustments was addressed to the U.S. Senate president and the U.S. House of Representatives speaker.
Dear Madam Speaker: (Madam President:)
“I am sending an alternate proposal for pay changes for civilian Federal employees who are covered by General Schedule and specific other pay systems in January 2023.
I am permitted by Title 5, United States Code, to implement alternative plans for pay adjustments for Federal employees who are covered by General Schedule and other pay systems if I believe that the increases that would otherwise go into effect are inappropriate due to “a national emergency or significant economic situation affecting the general welfare.”
As a result, I have decided that it is appropriate to use my power under 5 U.S.C. 5303(b) and 5304a to set alternative pay adjustments for 2023.
I have decided explicitly that, in line with the assumption in my 2023 Budget, the total base pay rise for civilian Federal employees in 2023 would be 4.1 percent, and locality pay rises will average 0.5 percent. This results in an average increase of 4.6 percent.
Federal agencies are facing more difficult retention and recruiting issues, and pay for federal employment is declining. There is a significant salary disparity between federal employees and those in the private sector due to several years of smaller pay raises for federal civilian employees than required by law. The American people depend on federal agencies being run and staffed by qualified, talented, and enthusiastic personnel, including those with the necessary skill sets, which necessitates maintaining competitive federal pay. By choosing an alternative compensation plan, the federal government will be able to compete more effectively in the labor market to draw in and keep staff with high standards.
The aforementioned adjustment will take effect on January 1, 2023, or the first day of the appropriate pay period following that date.
According to American Federation of Government Employees National President Everett Kelley, the total 4.6% pay increase announced by President Biden will be the highest pay adjustment for the feds in 20 years. But more needs to be done to compensate for the recent spike in inflation and bring federal salaries closer to market values.
As stated in the letter, the adjustment will be implemented on the first day of the appropriate pay period starting on or after January 1, 2023. It will apply to 2.1 million executive branch employees but not to the more than 600,000 workers at the U.S. Postal Service, whose raises are determined by collective bargaining.
This will also be the biggest increase since 2002 when a rise of the same percentage was given.
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