5.2% Federal Pay Raise in 2024
Anticipated before the end of December, an executive order is set to be issued, detailing the 2024 pay tables. The forthcoming pay raise is noteworthy, as it is poised to be the most substantial increase for Federal employees since the 1980 pay raise of 9.1% under Carter. The proposed pay raise for 2024 stands at an impressive 5.2%.
Christmas recess is underway for the House of Representatives and will reconvene in the new year. The Senate has decided to delay its holiday break to hammer out a deal on immigration and aid to Ukraine and Israel. Despite this, no concrete steps have been taken regarding the 2024 pay raise for Federal employees. Generally, this means the President’s proposed pay increase will be implemented in the new year.
Earlier in the Year
Biden announced that he planned to increase the pay raise to 5.2% for 2024. This figure includes an “across-the-board” percentage for all feds at 4.7% and 0.5% for locality pay.
As of now, the alternative pay plan falls short of the FAIR Act, a bicameral bill that Rep. Gerry Connolly (D-Va.) and Sen. Brian Schatz (D-Hawaii) introduced in January. The FAIR Act would give the civilian federal workforce an 8.7% average pay raise in 2024, divided between a 4.7% across-the-board base pay raise and a 4% average locality pay increase. Although lawmakers have introduced the FAIR Act in some form every year for the last nine years, Congress has never passed any version of the bill.
The Federal Employees Pay Comparability Act of 1990 (FEPCA) addresses the need for pay reform as Federal employees’ salaries have been lagging private sector salaries. As of 2023, the pay gap between Federal employees and the private sector grew to 24.1% in 2022. This pay gap leads to challenges in recruitment and retention within the civil service.
The pay increase will take effect unless Congress decides to enact a change on the 2024 budget. Usually, when the House and Senate are silent on the pay increase within the spending package, it indicates an endorsement of the President’s suggestion.
Typically, in late December, the President will issue an Executive Order setting the amount of the Federal employee pay increase. This would increase the across-the-board pay raise as well as each locality’s individual increase. The Office of Personnel Management (OPM) will calculate the amount of each employee’s pay increase based on every pay locality, then the pay tables are published soon after the Executive Order is issued.
For more information on how Federal pay raises are determined, check out our most recent article How are Federal Pay Raises Determined? Step-by-Step Process
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