Federal Employee Pay Freeze Signed into Law

President Obama has signed off on legislation that extends the federal pay freeze through the rest of 2013. The legislation also approves government funding through September 30, 2013.

In addition to extending the the current pay freeze for federal employees, it also contains a freeze on Congressional salaries for a third consecutive year. The legislation also redefines the outline of sequestration. While the process is not the traditional government appropriations process, it is the closest approximation of  a real budget that Congress will have produced for the current fiscal year that is now almost six months old. The Senate has not passed a budget for the past several years.

As we noted in an earlier article, the legislation recently passed by Congress overturns an executive order issued by the president late last year that ended the pay freeze on the workforce by giving a 0.5% pay increase to the federal workforce beginning in late March. The signing of the bill, as expected, extends the pay freeze for at least another few months.

The pay freeze applies to the annual raise that would normally be given to most federal workers. An annual pay raise was last approved in 2010. Despite the freeze on the annual pay, however, employees are still eligible to receive within-grade increases. While the new law does not prohibit bonuses or awards, the Office of Management and Budget has directed agencies to refrain from handing out bonuses and other awards while the sequestration is still in effect.



© 2016 Ralph R. Smith. All rights reserved. This article may not be reproduced without express written consent from Ralph R. Smith.

About the Author

Ralph Smith has several decades of experience working with federal human resources issues. He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters on federal human resources.

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  1. Kermit says:

    Thank you brother Barry

  2. JShiveley002 says:

    Let’s see . . .I think our union supported Obama during his campaign as most unions did.  So have any eyes been open to his scheduled agenda after he was so highly approved by the unions?  The unions and the government are taking us down a dark and forbidden road.  Where or will it ever end?

  3. PChicago says:

    Very helpful article. Thank you for writing it.

  4. bandit56 says:

    I take home less money now than I did 5 yrs ago!!!!  Health insurance’s rising costs and other rising costs are taking my paycheck back.  Some of us GS4,5,& 6’s are worse off now than 5 yrs ago.  No one thinks about us, just Congressional paychecks and GS 11 and above!

  5. Mambo0810 says:

    This is an insult to all federal workers in spite of all the heavy workloads at SSA field offices!

  6. Mimilovesu05 says:

    I love the people who voted for Obama for a second term knowing he cares nothing about this country or the working people in it!!!  He said he wanted a furlough and now he went through with it.  Something tells me he is not done yet.

  7. HRguru says:

    I am sure President Obama felt deeply for you all as he signed the bill.

  8. RJ Sotog says:

    Continue to give to CFC so that Obama’s 47% will keep getting their free handouts.