Panel Passes 1.4 Percent Pay Raise

A Senate panel on Thursday approved a bill granting civilian federal employees a 2011 pay raise of 1.4 percent.

The Senate Appropriations Committee voted for the civilian raise as part of the fiscal 2011 financial services spending bill. The adjustment is equal to the increase the Obama administration proposed in February. It also is in line with the change in the private sector's wages from September 2008 to September 2009, according to the Labor Department's Employment Cost Index. By default, federal pay raises are pegged to changes in the ECI.

The raise is slightly lower than the possible pay raise for members of the military, however. In May, the House passed authorization legislation that would provide military members with a pay raise of 1.9 percent next year. President Obama, who vowed to ensure pay parity between civilian workers and military personnel in 2011, issued a statement in May reiterating his belief that military members should receive a 1.4 percent increase.

A portion of the 1.4 percent civilian pay hike would be allocated for locality pay; the rest would go toward an across-the-board increase.