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Annual Pay Freeze for Congress? Done!

by Ian Smith |

Many FedSmith.com readers are understandably upset about the proposed freeze on their pay. One recurring comment we see from readers says something to the effect of “If we have to have our pay frozen, then it is only fair that Congress has its pay frozen as well.”

It may be of some consolation to those making this argument that members of Congress have already frozen their own pay for FY 2011. On May 14, 2010, President Obama signed into law HR 5146 which blocked members of Congress from receiving an automatic pay raise in FY 2011.

So how much is that? It keeps their salaries at $174,000 per year and blocks a $1,600 automatic raise, which would have been approximately a 0.92% increase on the annual total. Under the system in place, Congressional pay automatically increases each year by default unless members vote to block the increase which they have now done for 2 years in a row.

In total annual dollars saved, that works out to $160,000 in the Senate (for 100 members) and in the House it is an annual savings of $696,000 (for 435 members). That makes the freeze a largely symbolic gesture as it won’t go very far in reducing the federal deficit which is currently just shy of $14 trillion, but no doubt lawmakers are hoping the action will help to assuage some of the negative perceptions people have about those in office.

Update: It should be noted that Congress opted out of its automatic raise in 2010 also making this the second year in a row members have voted not to take their automatic pay increase.

© 2014 FedSmith Inc. All rights reserved. This copyrighted article may not be reproduced without express written consent of FedSmith Inc.

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Ian Smith

Ian Smith is one of the founders of FedSmith.com. He writes about current topics that impact federal employees.

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