Why more federal employees and retirees are protecting their retirement savings using this overlooked, IRS-approved program
UPDATE (12/23/2022): 2023 Federal Pay Raise Finalized in Executive Order The president issued an executive order Friday finalizing the 2023 federal employee pay raise of 4.6 percent. OPM’s official pay tables are also now available
As part of the 2023 fiscal budget request in March, the White House proposed an average 4.6% pay increase for 2023 for federal employees. The pay raise would be divided between a 4.1% across-the-board increase in basic pay and an average 0.5% increase to locality pay areas.
This 2023 federal employee pay raise proposal was formalized in August in the president’s alternative pay plan.
While groups representing federal employees and several members of Congress have requested a higher pay increase of 5.1% for 2023, it is unlikely that this additional amount will be made by the administration.
Congress also did not put in an additional request for a civilian federal worker pay increase in its appropriations bills earlier this year.
What’s Next?
The president will sign and issue an executive order finalizing the alternative pay plan in December. The Office of Personnel Management will then publish the official 2023 federal pay tables which will include pay information for each grade in the General Schedule and for each locality pay area. Last year, this executive order was issued on December 23.
Pay raises are effective the first full pay period of 2023.