Biden Issues Executive Order Finalizing Average 2.7% Pay Raise for Feds

President Biden on Wednesday issued an executive order implementing his plan to provide federal civilian employees with an average 2.7% pay raise next year.

As originally proposed in his fiscal 2022 budget plan, the raise provides federal workers with a 2.2% across-the-board raise, as well as an average 0.5% increase in locality pay.

Federal employee groups had lobbied lawmakers to overrule Biden’s pay plan during the appropriations process, pushing for a more generous 3.2% pay raise, which would have been split between a 2.2% pay increase and a 1% average increase in locality pay. But both the House and Senate versions of full year spending packages deferred to the president’s plan, and a full year government funding deal remains unresolved in favor of short term continuing resolutions.

The 2.7% average raise marks an increase from the 1% increase feds received at the beginning of 2021. That raise also included no locality pay boost. Biden’s pay raise also restores pay parity between civilian and military personnel. But it remains smaller than the 3.1% raise federal employees got in 2020.

The Office of Personnel Management on Wednesday night posted pay tables outlining the pay raise across grades and regions on its website. The pay raise will go into effect for the first full pay period of 2022.