Biden Plans to Give Federal Government Workers a Raise in 2023
President Joe Biden is planning to give federal employees a substantial pay raise in 2023.
In letters to Speaker of the House Nancy Pelosi (D-CA) and Vice President Kamala Harris in her capacity as President of the Senate, Biden announced his plans to give federal government employees an across-the-board pay raise of 4.1%, with an average locality-based pay raise of 0.5%; meaning some 2.1 million federal employees will receive raises of 4.6%, on average. The pay raises will take effect on January 1, 2023.
“Title 5 [of the] United States Code, authorizes me to implement alternative plans for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems if, because of ‘national emergency or serious economic conditions affecting the general welfare,’ I view the increases that would otherwise take effect as inappropriate,” Biden wrote in the letter. “Accordingly, I have determined that it is appropriate to exercise my authority to set alternative pay adjustments for 2023. Specifically, I have determined that for 2023, the across-the-board base pay increase will be 4.1 percent and locality pay increases will average 0.5 percent, resulting in an overall average increase of 4.6 percent for civilian Federal employees, consistent with the assumption in my 2023 Budget.”
Under federal law, if the president wishes to institute a pay raise above and beyond the normal raise, he must submit his plan to Congress by September 1 of the preceding year, including the reasons for instituting the raise. In considering any such raises, the president needs to consider “pertinent economic measures,” including the national GDP, the unemployment rate, the budget deficit, the Consumer Price Index, and the Producer Price Index.
Biden cited a continuing recruitment crisis as the reason for the raise. “Federal agencies have witnessed growing recruitment and retention challenges with Federal positions experiencing eroded compensation,” Biden wrote. (Read more from “Biden Plans to Give Federal Government Workers a Raise in 2023” HERE)
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