The White House Wednesday formally announced plans to provide civilian federal employees a 2023 pay raise of 4.6% in a letter to congressional leaders.
The letter outlined the president’s alternative pay plan stating:
Title 5, United States Code, authorizes me to implement alternative plans for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems if, because of “national emergency or serious economic conditions affecting the general welfare,” I view the increases that would otherwise take effect as inappropriate.
The 4.6% increase is the same amount that the White House proposed in its budget in March.
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While Congress could pass legislation provide a different figure for 2023 federal pay, based on history it is unlikely to do so at this point.
According the letter, the federal pay increase for 2023 will be an across-the-board base pay increase of 4.1% and locality pay increases to average 0.5%. Depending on what location the employees work, some may receive a lower or higher figure based on the final locality pay rates. The pay adjustment will take effect on the first day of the first applicable pay period beginning on or after January 1, 2023.
The final 2023 federal pay raise figures will not likely be issued until December when the White House issues an executive order and the Office of Personnel Management publishes the official 2023 federal pay tables.
Below is the full text of the president’s memo to the House of Representatives:
Letter to the Speaker of the House of Representatives and the President of the Senate on the Alternative Plan for Pay Adjustments for Civilian Federal Employees
August 31, 2022
Dear Madam Speaker: (Dear Madam President:)
I am transmitting an alternative plan for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems in January 2023.
Title 5, United States Code, authorizes me to implement alternative plans for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems if, because of “national emergency or serious economic conditions affecting the general welfare,” I view the increases that would otherwise take effect as inappropriate.
Accordingly, I have determined that it is appropriate to exercise my authority to set alternative pay adjustments for 2023 pursuant to 5 U.S.C. 5303(b) and 5 U.S.C. 5304a.
Specifically, I have determined that for 2023, the across-the-board base pay increase will be 4.1 percent and locality pay increases will average 0.5 percent, resulting in an overall average increase of 4.6 percent for civilian Federal employees, consistent with the assumption in my 2023 Budget.
Federal agencies have witnessed growing recruitment and retention challenges with Federal positions experiencing eroded compensation. 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 American people rely on Federal agencies being managed and staffed by skilled, talented, and engaged employees, including those possessing critical skills sets, which requires keeping Federal pay competitive. 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.
The adjustment described above shall take effect on the first day of the first applicable pay period beginning on or after January 1, 2023.