A recent memo from OPM director Katherine Archuleta directs federal agencies to implement the 1% pay increase recently granted to wage grade employees under the spending bill passed recently in Congress.
The memo reinforced that new pay rates cannot exceed the 1% increase that was granted, stating, “If any rate exceeds the rate payable on September 30, 2013, by more than 1 percent due to rounding, that rate must be reduced to the highest rate that does not exceed 1 percent.”
The memo said that the 1% increase will also apply to overseas employees.
As to when the increase will take effect, the memo states, “The wage rates on certain FY 2014 wage schedules are effective retroactively to the normal effective date prescribed on the wage schedule by the lead agency. This uniform date is fixed for all agencies using a wage schedule.”