Official Pay raise for Federal Civilian Employees

Sep 7, 2017

civilian

President Trump has issued a pay plan for federal civilian employees, officially giving workers, a 1.9 percent raise in 2018. This includes a base increase of 1.4 percent and a 0.5 percent locality pay raise.

The president had until midnight August 31st to announce a pay raise. If he had not informed Congress of an alternative pay plan, a formula based increase automatically kicks in, in accordance with the 1990 Federal Employee Pay Comparability Act. Under this act, the base raise is determined by the change in Employment Cost Index minus 0.5 percent, which for 2018 would’ve been about 1.9 percent. This is also the amount President Trump proposed in his budget for next year.

According to the White House, the locality pay increase, as mandated by FEPCA, would’ve averaged 26.16 percent, and would’ve cost the government $26 billion. In Trump’s letter to Congress, he wrote, “A pay increase of this magnitude isn’t warranted, and federal agency budgets could not accommodate such an increase while still maintaining support for key federal priorities such as those that advance safety and security of the American people.”

Union Reactions

The president of the National Treasury Employees Union, Tony Reardon, said this pay raise isn’t enough and supports legislation in Congress to give employees a 3.2 percent pay raise in 2018. “NTEU believes this figure is too low especially because federal law calls for a 1.9 percent across-the-board raise and private sector wages are growing at an even faster rate,” he said. “Add to that, current proposals attacking the federal retirement system would result in a pay cut for federal workers.”

The president of the National Active and Retired Federal Employees Association, Richard Thissen, applauded the pay raise but said NARFE would continue to push for Congress to approve a larger increase next year. “While federal employees appreciate the raise, an average increase of 1.9 percent is the minimum required to prevent federal pay from declining further, and more rapidly, below market than the current 35 percent wage disparity between public- and private-sector wages,” he said. “Both Congress and the president should work together to pursue a more robust pay increase to maintain the highly qualified workforce needed to run an efficient federal government.”

Ultimately, Congress has the final say on how much federal employees will earn in 2018.

Message us & find out if you qualify today!

  • This field is for validation purposes and should be left unchanged.

Recent Articles

How Back Pay Can Help You in Times of Financial Stress

Receiving your Federal Disability Retirement approval letter can provide you with a sense of relief in knowing that there is hope for a more secure future in retirement. However, you may find yourself in a difficult financial...

Postal Service will issue layoff notices later this month

It seems the U.S Postal Service is getting ready to layoff some employees later this month, sending out memos informing workers of their impending layoffs early in the week. Many postal workers are already on edge since the Postal Service has been closing mail centers...

Federal Employee Resources

Our ever growing library of federal employee resources give you the knowledge you need to make smart choices about your future.

FAQs

Frequently Asked Questions

Get the answers you need on-demand, from a team of federal employee benefits professionals.

View FAQ
Webinars

Federal Benefit Webinars

Twice per month we host webinars to help federal employees better understand their benefits and answer their questions LIVE.

See Webinar Schedule
Guides

Benefit Guides

From guides to detailed charts, these educational resources will help clarify confusing federal employee benefits topics.

See our resources