Biden Seeking 4.6% Pay Raise for Federal Employees in 2023

WASHINGTON — The White House on Wednesday announced that President Joe Biden is recommending a pay raise for all civilian federal employees effective the first applicable pay period on or after Jan. 1, 2023.

Biden is recommending a 4.1% across-the-board pay raise for all civilian federal employees, with an additional 0.5% average locality pay adjustment — meaning most will see a 4.6% bump in their paychecks early next year.

A formula in the Federal Employees Pay Comparability Act sets locality-based raises for most federal employees on the General Schedule. 

The president can choose to differ from this formula, but must inform Congress of his intention to do so by Aug. 31.

In a letter sent to congressional leaders Wednesday afternoon, Biden said federal agencies have been witnessing growing recruitment and retention challenges as compensation has eroded for many civilian government positions.

“Multiple years of lower pay raises for federal civilian employees than called for under regular law have resulted in a substantial pay gap for federal employees compared to the private sector,” the president said. 

“The American people rely on federal agencies being managed and staffed by skilled, talented and engaged employees, including those possessing critical skill sets, which requires keeping federal pay competitive,” he continued. “This alternative pay plan decision will allow the federal government to better compete in the labor market to attract and retain a well‑qualified federal workforce.

“I view the increases that would otherwise take effect as inappropriate,” he said.

Civilian federal employees last received a pay raise in January 2022, when the average increase was just 2.7%.

Dan can be reached at [email protected] and @DanMcCue