Obama Proposes Plan for 1% Pay Increase

By on August 30, 2013 in Current Events, Pay & Benefits with 315 Comments

In a letter issued late Friday, the president has said that he is transmitting an alternate pay plan for an across the board pay increase of 1% for the federal workforce for 2014.

The White House was on the record from earlier this year as being in favor of a 1% pay increase for federal workers. Had the president not acted, then a pay increase under the 1990 Federal Employees Pay Comparability Act would have taken effect which would have been 1.3% (For more on this see also: Will Feds Get a Pay Raise in 2014?)

Ultimately though, Congress will have to determine the final amount for a pay increase for 2014.

The president also issued a letter proposing a 1% pay increase under an alternate pay plan for members of the uniformed services.

You can check out the GS pay calculator to see what impact a 1% raise would have on annual General Schedule salaries.

The full text of the letter with the alternate pay plan for federal employees is included below.

TEXT OF A LETTER FROM THE PRESIDENT TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE SENATE

August 30, 2013

Dear Mr. Speaker: (Dear Mr. President:)

I am transmitting an alternative plan for pay increases for civilian Federal employees covered by the General Schedule (GS) and certain other pay systems for 2014.

Civilian Federal employees have already made significant sacrifices as a result of a three-year pay freeze. As our country continues to recover from serious economic conditions affecting the general welfare, however, we must maintain efforts to keep our Nation on a sustainable fiscal course.

Accordingly, I have determined that it is appropriate to exercise my statutory alternative plan authority under 5 U.S.C. 5303(b) and 5304a to set alternative 2014 across-the-board and locality pay adjustments. Specifically, I have determined that for 2014, across-the-board pay increases will be 1.0 percent, and the current locality pay percentages shown in Schedule 9 of Executive Order 13641 of April 5, 2013, will remain at their 2013 levels. This decision will not materially affect the Federal Government’s ability to attract and retain a well-qualified Federal workforce.

The adjustments described above shall take effect on the first applicable pay period beginning on or after January 1, 2014.

Sincerely,

BARACK OBAMA

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian also has a background in web development and does the technical work for the FedSmith.com web site and its sibling sites.

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