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President Biden’s New Proposal To Boost Wages Of Federal Workers Upto 5.2%

President Biden
President Biden; Source- Forbes

The White House has formally described its plan to give federal workers a wage boost of 5.2% on average in 2024. This action, which was made public on August 31 in a note to Congress, shows a dedication to fair compensation for government employees.

President Biden

President Biden; Source- Forbes

Wage Boost Of Federal Workers

President Biden explained the thinking behind this choice in the letter to Congress, citing legal clauses from Title 5, United States Code. Asserting their propriety in these trying times, the President emphasized that these modifications were required due to the ongoing national emergency or severe financial circumstances harming the general welfare. The pay changes for the coming year were announced by President Biden, who noted a 4.7% rise in base pay across the board and an average 0.5% increase in locality pay increments. These factors taken together result in an average annual increase for civilian government employees of 5.2%, in line with the budget’s expectations for 2024.

This pay raise suggestion was first made public as part of the fiscal budgetary proposal, making it the most significant pay increase for civilian federal employees in the 2024 budget year that is advised. The Office of Personnel Management is planning to publish final tables outlining the federal salary increase for 2024 later in December. For the government to run smoothly and to tackle the nation’s present and future challenges, the President underlined the need for fair compensation in luring and keeping highly skilled federal workers.

Changes Will Take Effect In January 2024

To be able to keep our government operating, provide services, and tackle our nation’s challenges now and in the future, President Biden reaffirmed the need for us to attract, recruit, and keep a qualified workforce with fair wages. This choice to implement an alternative pay plan is thought to be crucial in preserving a highly skilled federal workforce and making sure their compensation continues to be in line with previous wage rises in the labor market. The specified modifications will become effective as of the beginning of the first applicable pay period beginning between now and January 1, 2024, which is a step in the right direction for federal employees’ reasonable compensation.

Wages Difference Between Federal And Non-Federal Workers

The President’s Pay Agent projected that it would cost around $19.2 billion to reduce the public-private salary disparity to just 5%, although Biden did not directly mention this as the rationale for the alternative pay plan’s release. According to the Federal Salary Council, the wage difference between federal employees and non-federal counterparts increased to 24.09% in 2022 from 22.47% in 2021. Annual salary increases for federal employees begin with the January pay period but are not effective until the president issues an executive order executing them, which normally happens before the end of the fiscal year.

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