White House formalizes 2.7% pay raise

President Biden released an executive order on Wednesday formalizing an average 2.7% pay raise for civilian federal employees under the General Schedule. 

That includes a 2.2% base pay hike across the board, which an additional 0.5% increase categorized as variable locality pay. The bumps are effective on Jan. 1 for military members, who are also getting a 2.7% raise, and in the first pay period on or after Jan. 1 for civilian feds.

Some Democrats on the Hill and federal employee groups had been pushing for a 3.2% increase, but appropriations bills that might have addressed that issue did not move forward, leaving Biden in the clear to put forth an “alternative pay plan” under administrative authority. This executive order finalizes this plan.

Next, the Office of Personnel Management must publish new pay tables for the pay raise at General Schedule and locality pay areas.