#5 Things You Need to Know About the 2025 Federal Pay Raise

#5 Things You Need to Know About the 2025 Federal Pay Raise

Attention federal employees! The 2025 federal pay raise is just around the corner. The Office of Personnel Management (OPM) has released the proposed pay tables, and they include a significant increase in salary for all federal employees. In addition, the pay raise will be retroactive to the first pay period in January 2025. This means that federal employees will receive a lump sum payment for the back pay in February 2025.

The proposed pay raise is a result of the annual review of federal employee salaries by OPM. OPM compares federal salaries to those of similar positions in the private sector and makes recommendations for adjustments based on the findings. The proposed pay raise is designed to ensure that federal employees are compensated fairly for their work. The pay raise is also expected to help recruit and retain qualified employees in the federal workforce.

The proposed pay raise has been met with mixed reactions from federal employee unions. Some unions have praised the pay raise, while others have said that it is not enough. However, most unions agree that the pay raise is a step in the right direction. The pay raise is also expected to have a positive impact on the economy, as federal employees will have more money to spend on goods and services.

Federal Employee Pay Raise for 2025: Anticipated Amount

Anticipated 2025 Federal Pay Raise

The anticipated federal pay raise for 2025 is yet to be determined, as it is typically announced by the President in early January of each year. However, based on historical trends and current economic indicators, we can make informed projections about the potential amount of the raise.

The federal pay raise for 2022 was 2.7%, while the average private sector wage increase was 4.7%. This disparity has led to concerns about the competitiveness of federal salaries and the potential impact on recruitment and retention of qualified employees.

For 2023, the federal government has approved a 4.6% pay increase, which is intended to address the rising cost of living and help bridge the gap with the private sector. This increase includes a 3.1% across-the-board raise and an additional 1.5% locality pay adjustment for employees in high-cost areas.

Economists are predicting that inflation will remain elevated in 2024, albeit at a lower rate than in 2023. As such, we can anticipate another federal pay raise in the range of 3-4% for 2025. This would continue the trend of providing competitive salaries for federal employees and ensuring their purchasing power keeps pace with rising living costs.

Year Federal Pay Raise
2022 2.7%
2023 4.6% (3.1% across-the-board, 1.5% locality pay)

Impact of Inflation on Federal Pay Adjustments

Inflation’s Impact on Federal Pay

Inflation erodes the purchasing power of money, which affects the real value of federal pay. When inflation is high, a given salary’s buying potential decreases. This means that federal employees may struggle to keep up with the rising cost of living and maintain their standard of living.

Historical Impact

According to the Office of Management and Budget (OMB), inflation was 7.9% in 2022, a significant increase from recent years. This has led to a decrease in the real value of federal pay by 4.8% since 2020.

Addressing Inflation’s Impact

To address the impact of inflation, the federal government has implemented several measures, including:

Year Pay Raise Inflation Rate
2023 4.6% 7.5%
2022 2.7% 7.9%
2021 1.3% 4.7%

These pay raises are intended to mitigate the impact of inflation and help federal employees maintain their purchasing power. However, the effectiveness of these measures will depend on the future trajectory of inflation.

Legislative Path for the 2025 Pay Raise

The process for determining the 2025 federal pay raise involves several steps:

1. Economic Analysis

The President’s Pay Agent (the Director of the Office of Personnel Management) conducts an analysis of economic data to determine the appropriate pay adjustment. This analysis considers factors such as inflation, comparability with private-sector pay, and the cost of living.

2. Presidential Recommendation

Based on the economic analysis, the President submits a pay raise recommendation to Congress. This recommendation is typically included in the President’s budget proposal for the fiscal year in which the pay raise would take effect.

3. Congressional Action

Congress has the authority to approve, modify, or reject the President’s pay raise recommendation. The process for doing so involves several steps:

  • House of Representatives: The House Committee on Oversight and Reform considers the pay raise proposal and makes a recommendation to the full House for a vote.
  • Senate: The Senate Committee on Homeland Security and Governmental Affairs considers the pay raise proposal and makes a recommendation to the full Senate for a vote.
  • Conference Committee: If the House and Senate approve different versions of the pay raise proposal, a conference committee is convened to reconcile the differences and produce a compromise bill.
  • Final Approval: The compromise bill must be approved by both the House and Senate by a majority vote.
  • Presidential Signature: The President must sign the pay raise bill into law before it can take effect.

Timeline for Congressional Action

Stage Typical Timeline
House Committee Consideration February-March
House Vote April-May
Senate Committee Consideration May-June
Senate Vote June-July
Conference Committee July-August (if necessary)
Final Approval September-October
Presidential Signature October-November

It’s important to note that the timelines provided are approximate and can vary depending on factors such as the legislative agenda and political dynamics.

Comparison to Previous Federal Pay Raises

The 2025 federal pay raise is projected to be 4.6%, which is higher than the 2.7% raise in 2024 and the 2.6% raise in 2023. However, it is still lower than the 4.8% raise in 2022 and the 5.2% raise in 2021.

Factors Affecting the Pay Raise

The factors that affect the federal pay raise include:

  • The rate of inflation, as measured by the Employment Cost Index (ECI).
  • The projected increase in the average General Schedule (GS) employee salary.
  • The President’s budget request to Congress.
  • The economic outlook and the federal government’s financial situation.

Historical Context

The following table shows a comparison of the 2025 federal pay raise to previous federal pay raises:

Year Pay Raise
2025 4.6%
2024 2.7%
2023 2.6%
2022 4.8%
2021 5.2%
2020 3.1%
2019 2.6%

As the table shows, the 2025 federal pay raise is projected to be higher than the average pay raise over the past five years.

Economic Implications of the 2025 Pay Increase

Increased Consumer Spending

The pay increase will provide federal employees with additional disposable income, which is likely to be spent on goods and services, stimulating economic growth.

Improved Standard of Living

The increased pay will allow federal employees to improve their quality of life, affording them better housing, healthcare, and education.

Reduced Income Inequality

The pay increase will help narrow the income gap between federal employees and their private sector counterparts, promoting economic equality.

Increased Tax Revenue

The higher salaries will result in increased tax revenue for the government, which can be used to fund essential public services.

Inflation

The potential downside of the pay increase is that it could contribute to inflation if businesses pass on the increased labor costs to consumers in the form of higher prices.

The following table summarizes the key economic implications of the 2025 pay increase:

Economic Implication Description
Increased consumer spending Federal employees will have more disposable income to spend.
Improved standard of living Increased pay will allow federal employees to improve their quality of life.
Reduced income inequality The pay increase will help narrow the income gap between federal employees and the private sector.
Increased tax revenue Higher salaries will result in increased tax revenue for the government.
Inflation The pay increase could contribute to inflation if businesses pass on the increased labor costs to consumers.

Geographical Differentials

Geographical differentials are locality-based pay adjustments designed to compensate federal employees for the varying costs of living across different geographic areas. These differentials are applied to general schedule (GS) employees in the continental United States and Alaska, excluding Hawaii and the territories.

The Office of Personnel Management (OPM) determines geographical differentials by comparing the local cost of living with the cost of living in the Washington, D.C. metropolitan area. Areas with higher costs of living receive higher differentials, while areas with lower costs of living receive lower differentials.

Locality Pay Adjustments

Locality pay adjustments (LPAs) are another type of locality-based pay adjustment for federal employees. LPAs are applied to GS employees in certain geographic areas where the cost of living is significantly higher than the national average.

Unlike geographical differentials, which are determined by comparing local costs of living to the Washington, D.C. metropolitan area, LPAs are determined by comparing local costs of living to the average cost of living for all localities with GS employees. This results in higher LPAs in areas with extremely high costs of living.

Special Salary Rates (SSR)

In some cases, federal employees in certain occupations or agencies may receive special salary rates (SSRs). SSRs are established when OPM determines that the prevailing local rates for a specific occupation or agency are significantly higher than the rates payable under the GS system.

SSRs are typically applied to positions in areas with a high demand for specialized skills or to positions in agencies with unique missions. Employees receiving SSRs receive a pay rate that is above the maximum rate of the GS pay grade for their position.

Geographical Differential Locality Pay Adjustment Special Salary Rate
Compares local cost of living to Washington, D.C. Compares local cost of living to national average Above maximum GS pay grade
Applies to GS employees in continental U.S. and Alaska Applies to GS employees in certain geographic areas Applies to specific occupations or agencies

Union Negotiations and Collective Bargaining Agreements

Negotiations Process

Federal employee unions negotiate with the Biden administration to determine the annual pay raise for federal employees covered by collective bargaining agreements (CBAs).

Impact on Pay Raises

The outcome of these negotiations directly impacts the size of the pay raise that federal employees will receive.

Bargaining Units and Representatives

Unions representing different bargaining units, such as AFGE, NFFE, and FOP, negotiate on behalf of their members.

CBA Expiration Dates

CBAs typically have expiration dates, after which new negotiations must occur.

Exclusions from Bargaining

Supervisory and management employees, as well as employees in certain occupations, are not eligible for union representation or collective bargaining.

Arbitration

If negotiations fail to reach an agreement, the issue may be submitted to arbitration for a binding decision.

Table: CBA Expiration Dates and Bargaining Units

Bargaining Unit CBA Expiration Date
AFGE (American Federation of Government Employees) February 28, 2025
NFFE (National Federation of Federal Employees) February 28, 2025
FOP (Federal Protective Service Officers) June 29, 2025

Pay Parity between Federal Employees and Private Sector

Federal employees have historically earned less than their private-sector counterparts. In recent years, the gap has widened, as the private sector has outpaced the federal government in terms of pay raises. This disparity has led to concerns about the ability of the federal government to attract and retain qualified employees.

The Pay Gap

The pay gap between federal employees and private-sector workers varies depending on the occupation and level of experience. However, a 2019 study by the Congressional Research Service found that, on average, federal employees earn about 11% less than their private-sector counterparts.

Causes of the Pay Gap

There are a number of factors that contribute to the pay gap between federal employees and private-sector workers. These include:

  • The federal government’s budget constraints.
  • The perception that federal employees have more job security than private-sector workers.
  • The lack of a strong union presence in the federal government.

Efforts to Address the Pay Gap

There have been a number of efforts to address the pay gap between federal employees and private-sector workers. These include:

  • The Federal Salary Council, which advises the President on federal pay policy.
  • The Federal Employees Pay Comparability Act, which requires the President to adjust federal pay rates based on private-sector data.
  • The Office of Personnel Management, which oversees the implementation of federal pay policy.

The Future of Pay Parity

The future of pay parity between federal employees and private-sector workers is uncertain. The federal government’s budget constraints will continue to be a challenge, and the perception that federal employees have more job security than private-sector workers is not likely to change. However, there is growing support for efforts to address the pay gap, and it is possible that progress will be made in the years to come.

Year Federal Pay Raise
2020 3.1%
2021 1.4%
2022 2.7%
2023 4.6%

Historical Federal Pay Raises

Federal pay raises have varied over the years, with some years seeing larger increases than others. In recent years, federal pay raises have been relatively modest, typically ranging from 1% to 3%.

2023 Federal Pay Raise

The 2023 federal pay raise was 4.6%, the largest increase in nearly two decades. This pay raise was intended to help federal employees keep pace with the rising cost of living.

2024 Federal Pay Raise

The 2024 federal pay raise is expected to be 3.3%, according to the Congressional Budget Office. This pay raise is intended to keep pace with the projected rate of inflation.

2025 Federal Pay Raise

The 2025 federal pay raise is still under consideration by Congress. However, it is likely that the pay raise will be in the range of 2% to 4%. This pay raise is intended to keep pace with the projected rate of inflation.

Cost-of-Living Adjustments and the Federal Pay Raise

Federal employees are also eligible for cost-of-living adjustments (COLAs). COLAs are intended to help federal employees keep pace with the rising cost of living in their local areas. COLAs are typically calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Recent COLAs

Year COLA
2023 8.7%

2024 5.9%

2025 Projected to be 4.6%

COLAs are typically applied to federal employee salaries in January of each year.

Long-Term Outlook for Federal Pay

The Future of Federal Pay

The long-term outlook for federal pay is uncertain. There are a number of factors that will affect the future of federal pay, including the economy, the political climate, and the needs of the federal government.

The Economy

The economy is a major factor that will affect the future of federal pay. If the economy is strong, the government may be more likely to increase federal pay. However, if the economy is weak, the government may be more likely to freeze or even cut federal pay.

The Political Climate

The political climate is another factor that will affect the future of federal pay. If the government is controlled by a party that is supportive of federal employees, the government may be more likely to increase federal pay. However, if the government is controlled by a party that is not supportive of federal employees, the government may be more likely to freeze or even cut federal pay.

The Needs of the Federal Government

The needs of the federal government will also affect the future of federal pay. If the government is facing a shortage of qualified workers, the government may be more likely to increase federal pay. However, if the government is not facing a shortage of qualified workers, the government may be more likely to freeze or even cut federal pay.

Conclusion

The future of federal pay is uncertain. There are a number of factors that will affect the future of federal pay, including the economy, the political climate, and the needs of the federal government.

Table: Factors Affecting the Future of Federal Pay

Factor Impact on Federal Pay
Economy Strong economy may lead to higher federal pay; weak economy may lead to frozen or cut federal pay.
Political Climate Government controlled by a party supportive of federal employees may lead to higher federal pay; government controlled by a non-supportive party may lead to frozen or cut federal pay.
Needs of the Federal Government Shortage of qualified workers may lead to higher federal pay; no shortage of qualified workers may lead to frozen or cut federal pay.

2025 Federal Pay Raise Update

The 2025 federal pay raise update is currently under review by the Biden administration. The president has proposed a 4.6% pay increase for federal employees, which would be the largest increase in over a decade. The proposal is currently being considered by Congress, and it is expected to be approved by the end of the year.

If approved, the 2025 federal pay raise would be a significant benefit for federal employees. The increase would help to offset the rising cost of living and improve the overall morale of the federal workforce. It would also help to attract and retain qualified employees in the federal government.

People Also Ask About 2025 Federal Pay Raise Update

When will the 2025 federal pay raise be announced?

The 2025 federal pay raise is expected to be announced by the end of the year.

How much will the federal pay raise be in 2025?

The president has proposed a 4.6% pay increase for federal employees in 2025.

Will the 2025 federal pay raise be approved by Congress?

The 2025 federal pay raise is expected to be approved by Congress.

What is the impact of the 2025 federal pay raise?

The 2025 federal pay raise would help to offset the rising cost of living and improve the overall morale of the federal workforce.

2025 GS Pay Scale: Here’s What to Expect

2025 GS Pay Scale: Here’s What to Expect

The General Schedule (GS) pay scale is used to determine the salaries of federal civilian employees in the United States. The GS pay scale is divided into 15 grades, with each grade having 10 steps. The step that an employee is assigned to is based on their experience and performance. In recent years, there has been a push to increase the GS pay scale to keep up with the rising cost of living. In 2023, the GS pay scale was increased by 4.6%, and in 2024, it is expected to be increased by another 4.1%. However, many employees are hoping for a more significant increase in the GS pay scale in 2025.

There are several reasons why employees are pushing for a higher GS pay scale increase in 2025. First, the cost of living has continued to rise in recent years, and many employees are struggling to make ends meet. Second, the GS pay scale has not kept pace with the private sector in recent years. As a result, federal employees are falling behind their private-sector counterparts in terms of salary. Third, a higher GS pay scale increase would help to attract and retain the best talent in the federal government.

The Biden administration has proposed a 4.6% increase in the GS pay scale for 2025. However, Congress has yet to approve this proposal. If Congress does not approve the proposed increase, the GS pay scale will only increase by 3.1% in 2025. However, employees are hopeful that Congress will approve the proposed increase, or even increase it further. A higher GS pay scale increase would be a significant benefit to federal employees, and it would help to keep up with the rising cost of living and attract and retain the best talent in the federal government.

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Impact of Inflation on Federal Salaries

The significant rise in inflation has placed a strain on the purchasing power of federal employees. In response to this, the government has proposed a pay scale increase for 2025 aimed at mitigating the financial impact on their workforce.

Factors Contributing to Inflation

The current inflationary pressure stems from a combination of factors, including supply chain disruptions caused by the COVID-19 pandemic, increased consumer demand, and geopolitical tensions. As a result, everyday necessities such as groceries, fuel, and housing have become more expensive.

Consequences of Inflation on Federal Employees

Inflation has eroded the purchasing power of federal employees, making it more difficult for them to afford essential expenses. This has led to increased financial stress and a decline in morale among the government workforce. Furthermore, it has put pressure on recruitment and retention efforts as federal employees may seek employment elsewhere with higher salaries.

The following table outlines the estimated percentage increase in cost of living allowances (COLAs) for federal employees in 2025 based on projected inflation rates:

Location COLA Increase
Washington, D.C. 4.8%
Los Angeles, CA 4.6%
New York, NY 4.4%

Collective Bargaining and the Role of Unions

Collective bargaining is a process in which a union representing a group of employees negotiates with an employer over the terms and conditions of their employment, including wages, benefits, and working conditions. Collective bargaining agreements (CBAs) are the result of these negotiations and typically cover a period of several years.

Unions play an important role in the federal sector by representing employees and advocating for their interests. They provide a collective voice for employees and help to ensure that their concerns are heard by management. Unions also provide training, support, and representation to employees in grievance procedures and other matters affecting their employment.

Union Representation

Employees in the federal sector have the right to join a union and to be represented by that union in collective bargaining. There are over 30 different unions representing federal employees, each with its own membership and areas of expertise. Employees can choose to join any union that represents employees in their occupation or at their agency.

Bargaining Units

Collective bargaining is conducted at the local level between a union and an agency. Each bargaining unit is defined by the specific group of employees that the union represents. Bargaining units can be large or small, and they can include employees in a single agency or in multiple agencies.

Collective Bargaining Agreements

CBAs are legally binding contracts that set forth the terms and conditions of employment for employees in a particular bargaining unit. CBAs typically cover a wide range of issues, including wages, benefits, hours of work, leave, and other working conditions.

Negotiation Process

The negotiation process typically begins when the union submits a proposal to the agency. The agency then responds with a counterproposal. The two sides then engage in a series of negotiations until they reach an agreement.

Arbitration

If the two sides cannot reach an agreement, they may submit the matter to arbitration. Arbitration is a process in which a neutral third party makes a binding decision on the issue in dispute.

Impasse Procedures

If the two sides reach an impasse in negotiations, they may engage in impasse procedures. These procedures can vary depending on the bargaining unit, but they typically involve the assistance of a mediator or arbitrator.

GS Pay Scale 2025 Increase

The General Schedule (GS) pay scale is used to determine the salaries of federal government employees in the United States. The GS pay scale is adjusted annually to keep pace with inflation. The 2025 GS pay scale increase is expected to be approximately 2.8%. This increase will be applied to all GS employees, regardless of their grade or step.

The GS pay scale is divided into 15 grades, with each grade divided into 10 steps. The step that an employee is placed in is based on their experience and performance. The 2025 GS pay scale increase will affect all employees, regardless of their grade or step.

The 2025 GS pay scale increase is a welcome news for federal employees. The increase will help to offset the rising cost of living and will provide a boost to their salaries.

People Also Ask About GS Pay Scale 2025 Increase

When will the 2025 GS pay scale increase take effect?

The 2025 GS pay scale increase is expected to take effect in January 2025.

How much will the 2025 GS pay scale increase be?

The 2025 GS pay scale increase is expected to be approximately 2.8%.

Who will be eligible for the 2025 GS pay scale increase?

All GS employees, regardless of their grade or step, will be eligible for the 2025 GS pay scale increase.

What is the GS pay scale?

The GS pay scale is used to determine the salaries of federal government employees in the United States. The GS pay scale is divided into 15 grades, with each grade divided into 10 steps.

2025 Federal GS Pay Raise: Everything You Need to Know

#5 Things You Need to Know About the 2025 Federal Pay Raise

Attention, federal employees! The highly anticipated 2025 General Schedule (GS) Pay Raise proposal is on the horizon, promising a potential boost to your earnings. As the cost of living continues to rise, this adjustment holds great significance for the financial well-being of the federal workforce.

The Office of Personnel Management (OPM) is currently reviewing and finalizing the proposal, which will be submitted to President Biden for approval. The proposed pay increase is expected to align with the projected increase in the Employment Cost Index (ECI), a measure of private-sector salary growth. Historical data indicates that the ECI has increased by an average of 4.2% over the past five years, suggesting a potential pay raise of similar magnitude for federal employees.

The final GS Pay Raise percentage will be determined by various factors, including economic conditions, budgetary constraints, and the administration’s priorities. Once approved, the pay increase will be implemented in January 2025, affecting all employees covered by the General Schedule pay system. Stay tuned for further updates as the proposal progresses through the approval process.

Economic Factors Driving the 2025 Pay Increase

Inflation

Inflation is a major economic factor that influences the need for a pay increase. When the cost of living rises, employees require a higher salary to maintain their standard of living. The Bureau of Labor Statistics (BLS) measures inflation through the Consumer Price Index (CPI), which tracks changes in the prices of a basket of goods and services. For the past year, inflation has averaged 8.5%, a significant increase from recent years. This high inflation rate has eroded the purchasing power of federal employees’ salaries, making a pay increase necessary.

Labor Market Conditions

The demand for skilled workers in the labor market also plays a role in determining pay increases. When there is a shortage of qualified candidates, employers must offer competitive salaries to attract and retain top talent. The current labor market is tight, with unemployment at a low of 3.5%. This competitive job market gives federal employees leverage in negotiating for higher pay.

Increased Productivity

Increased productivity is another factor that can lead to a pay increase. When federal employees produce more output or perform more efficiently, they can warrant a higher salary. The General Services Administration (GSA) measures productivity through its Federal Employee Performance Index (FEPI), which tracks employee output and efficiency. In recent years, FEPI data has shown steady increases in federal employee productivity, supporting the argument for a pay raise.

Employment Sector Percentage of Expected Raise
Blue-Collar Workers 3.6%
White-Collar Workers 3.8%
Service Workers 3.4%

Impact of the 2025 Pay Raise on Federal Employees

The anticipated pay raise for federal employees in 2025 is a significant development that will have a notable impact on this workforce.

Increased Compensation

The primary impact of the pay raise will be the increase in compensation for federal employees. This raise will provide much-needed financial relief, particularly for those in lower pay grades. The higher salaries will allow employees to enhance their standard of living, reduce financial stress, and plan for the future.

Enhanced Motivation and Retention

A competitive salary structure is crucial for attracting and retaining qualified individuals in the federal workforce. The 2025 pay raise will make federal employment a more appealing career option, helping to fill critical vacancies. Moreover, it will contribute to increased motivation and productivity among existing employees, recognizing their hard work and dedication.

Economic Stimulus

The increased salaries for federal employees will have a ripple effect on the economy. As employees spend their earnings, local businesses and the economy will benefit. The pay raise will stimulate consumer spending, boost tax revenues, and create a more robust economic environment.

Reduced Financial Disparities

The pay raise is expected to address existing financial disparities within the federal workforce. It will provide substantial salary increases for employees in lower pay grades, helping to close the gap between their compensation and that of higher-paid counterparts. This will promote equity and fairness throughout the federal government.

Pay Grade Current Salary Projected 2025 Salary
GS-5 $40,000 $46,000
GS-12 $70,000 $81,000
GS-15 $100,000 $116,000

Advocacy Efforts for a Competitive 2025 Pay Raise

1. Legislative Support

Federal employee organizations, such as the American Federation of Government Employees (AFGE), the National Treasury Employees Union (NTEU), and the National Federation of Federal Employees (NFFE), are actively lobbying Congress for legislation that would authorize a competitive pay raise for 2025.

2. Public Outreach

Employee organizations are engaging with the media, holding rallies, and conducting grassroots campaigns to raise awareness about the need for a fair pay increase. They are highlighting the contributions of federal employees and the importance of retaining and recruiting a skilled workforce.

3. Collaboration with Industry

Employee organizations are collaborating with industry experts and economists to gather data and develop compelling arguments for a competitive pay raise. They are working to demonstrate the economic impact of federal employees and the need to ensure their salaries remain competitive with the private sector.

4. Building Coalitions

Employee organizations are forming coalitions with other stakeholder groups, such as small businesses and nonprofit organizations, who also rely on the services provided by federal employees. They are working to build a broader base of support for a pay raise.

5. Direct Contact with Lawmakers

Employee organizations are encouraging their members to contact their elected officials and express support for a competitive pay raise. They are providing resources and guidance to ensure that employees can effectively advocate for themselves.

6. Detailed Economic Analysis

Employee organizations are conducting thorough economic analyses to demonstrate the impact of a pay raise on the federal budget, the economy, and the private sector. They are using data and research to support their arguments and counter any objections.

Organization Economic Analysis
AFGE Link to AFGE Analysis
NTEU Link to NTEU Analysis
NFFE Link to NFFE Analysis

Historical Trends in Federal GS Pay Raises

Federal GS pay raises have consistently lagged behind inflation in recent decades, resulting in a decline in the purchasing power of federal employees.

8. Recent Pay Raise History (2023-2025)

In 2023, federal employees received a 4.6% pay raise, the largest in over a decade. However, this raise was still below the rate of inflation, which was 7.5% at the time. For 2024, federal employees are scheduled to receive a 3.2% pay raise, which is again below the projected inflation rate of 3.5%.

In 2025, the pay raise is expected to be 3.0%. This raise is also below the projected inflation rate of 3.2%. However, it is important to note that these are just estimates, and the actual pay raise may be higher or lower depending on economic conditions.

Year Pay Raise Inflation Rate
2023 4.6% 7.5%
2024 3.2% 3.5%
2025 (Est.) 3.0% 3.2%

Regional Pay Adjustments and the 2025 Pay Increase

The Office of Personnel Management (OPM) has proposed a 4.6% pay increase for federal employees in 2025. This increase includes a 3.2% across-the-board raise and a locality pay adjustment of up to 1.4%.

Locality Pay Adjustments

Locality pay adjustments are designed to offset the higher cost of living in certain geographic areas. Federal employees in these areas receive a higher salary than their counterparts in lower-cost areas.

The locality pay adjustment zones are based on the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures the change in the cost of a basket of goods and services commonly purchased by urban wage earners and clerical workers.

The OPM uses the CPI-W data to calculate the locality pay adjustment for each zone. The higher the CPI-W, the higher the locality pay adjustment.

The OPM has proposed the following locality pay adjustments for 2025:

Zone Adjustment Zone 1 0.5%
Zone 2 1.0%
Zone 3 1.4%

The OPM’s proposed 2025 pay increase is subject to approval by Congress. If approved, it would be the largest pay increase for federal employees in over a decade.

Federal GS Pay Raise 2025: An Outlook

In the wake of the recently passed budget agreement, federal employees eagerly anticipate news regarding the General Schedule (GS) pay raise for 2025. While the exact percentage increase has yet to be determined, the agreement provides a framework for setting the pay raise based on data analysis and economic indicators.

Historical trends suggest that federal pay raises have typically been in the range of 2% to 3%. However, the current high inflation rate and ongoing economic uncertainty could potentially lead to a higher increase. The Office of Management and Budget (OMB), which is responsible for recommending the pay raise, will carefully consider these factors in its analysis.

People Also Ask About Federal GS Pay Raise 2025

When will the Federal GS Pay Raise 2025 be announced?

Answer:

The Federal GS Pay Raise 2025 is typically announced in December of the preceding year. Therefore, the announcement is expected in December 2024.

How is the Federal GS Pay Raise 2025 determined?

Answer:

The Federal GS Pay Raise 2025 is determined by the President, after considering recommendations from the Office of Management and Budget (OMB). OMB uses data analysis and economic indicators to make its recommendations, which are then submitted to the President for final approval.

Will the Federal GS Pay Raise 2025 be retroactive?

Answer:

Federal GS Pay Raises are typically not retroactive. This means that the new pay rates will go into effect on the first pay period after the announcement, which is usually in January.