In a letter to Congress on August 30, the White House sent an alternative plan for pay adjustments for civilian federal employees covered by the General Schedule and certain other pay systems in January 2025.
“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 letter stated.
The letter proposes an the across-the-board 2025 federal employee pay raise of 1.7 percent and locality pay increases will average 0.3 percent, “resulting in an overall average increase of 2.0 percent for civilian federal employees.” This proposal is consistent with the 2025 White House budget released earlier this year.
Congress can pass legislation for the 2025 federal pay raise, but has not done so this year. In February, Congressman Gerry Connolly (D-VA) and Senator Brian Schatz (D-HI) reintroduced legislation in the House and Senate that proposed a 2025 pay raise of 7.4 percent.
The final pay raise tables are usually released in December of each year from the Office of Personnel Management.
The full text of the letter is below.
Dear Mr. 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 2025.
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 2025 pursuant to 5 U.S.C. 5303(b) and 5 U.S.C. 5304a.
Specifically, I have determined that for 2025, the across-the-board base pay increase will be 1.7 percent and locality pay increases will average 0.3 percent, resulting in an overall average increase of 2.0 percent for civilian Federal employees, consistent with the assumption in my 2025 Budget.
We must attract, recruit, and retain a skilled workforce with fair compensation in order to keep our Government running, deliver services, and meet our Nation’s challenges today and tomorrow. This alternative pay plan decision will continue to allow the Federal Government to employ a well‑qualified Federal workforce on behalf of the American people, acknowledging wage growth in the labor market and fiscal constraints.
The adjustment described above shall take effect on the first day of the first applicable pay period beginning on or after January 1, 2025.
Sincerely,
JOSEPH R. BIDEN JR.