U.S. News
President Joe Biden Ensures Historic Salary Increase for Federal Workers in the U.S.
Dec
President Joe Biden has recently signed a historic executive order, marking a significant development for U.S. federal workers. Thanks to this order, they are on the brink of experiencing the largest salary increase in decades. This average increase of 5.2 percent represents a significant milestone for the approximately 2.2 million federal government employees. It marks the most substantial raise since the Carter administration.
Democrats Tackle Federal Salary Lag to Boost Workers and State Economies
In the past, Republicans argued that private-sector workers earned less than their federal counterparts. Democrats, supported by studies from the Federal Salary Council, emphasize a 27.5% federal salary lag. Doreen Greenwald, National President of the National Treasury Employees Union, expects this financial boost to benefit not only the workers but also to stimulate economies across all states. This is particularly significant given that the majority of the federal workforce resides outside the Washington, D.C. region.
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Breakdown of the Increase
The 5.2% salary increase consists of a 4.7% across-the-board raise, with the remainder adjusted based on local private-sector comparables. This approach aims to address cost-of-living differences in various areas of the country. For example, employees in high-cost areas like Seattle-Tacoma will see a more substantial raise at 5.7 percent, while those in the Miami area will experience a slightly lower increase at 4.94 percent. The Washington-Baltimore area will experience a 5.31% increase, spanning cities in Maryland, Virginia, Pennsylvania, and West Virginia.
Joe Biden Backs Federal Workers
President Joe Biden has strongly endorsed this salary increase as part of his ongoing commitment to federal workers. In addition to the salary hike, the administration has taken additional measures to strengthen the relationship between the government and federal employee unions. These actions include continued telework policies, intensified hiring efforts in government agencies, and measures to prevent previous policies that could have impacted job stability.
Response to Historical Debates
This salary increase also responds to historical debates in Congress regarding salary equity between federal and private-sector employees. While Republicans have argued in the past that private-sector employees earn considerably less than their federal counterparts, Democrats, supported by studies from the Federal Salary Council, highlight that federal salaries lag behind by an average of 27.5 percent compared to similar private-sector jobs.
Transforming Federal Pay and Strengthening Labor Relations
President Biden’s proposed 2024 budget signals a significant shift in federal pay dynamics, emphasizing his commitment to address labor concerns. It underscores the current administration’s determination to address labor concerns and promote economic stability. This milestone is expected to strengthen the administration’s relationship with federal workers, establishing a significant precedent that will shape the future of government employment in the United States.