NARFE National President William Shackelford issued the following statement in response to the alternative pay plan for 2024 submitted by President Joseph R. Biden today:
“This 5.2% average pay increase demonstrates the Biden administration’s understanding of the
value of these hard-working civil servants and the jobs they do, as well as displays the
administration’s commitment to recruitment and retention of talented federal employees.
“If enacted, this would be the largest pay raise since 1980, building on the progress toward parity with the private sector. The amount would also track with the expected military pay increase for the third consecutive year.
“Keeping up with private-sector pay growth is essential to maintaining the federal government’s ability to recruit and retain a highly qualified and effective workforce. The pay increase will work to narrow the wage gap between federal employees and those in the private sector—who make as much as 24% more than public servants in comparable jobs—and strengthen the federal
government’s ability to maintain a highly qualified and effective workforce.”
Background
–The average 5.2% pay raise would consist of a 4.7% across-the-board increase with a 0.5% average increase to locality pay rates. The figure is based on the annual change in private-sector pay as measured by the Bureau of Labor Statistics’ Employment Cost Index prior to the development of the president’s budget request.
–If Congress does not pass a law to alter it, the alternative play plan will go into effect pursuant to an executive order to be issued in December.
–The Federal Salary Council analyzes federal pay in comparison to wages in the private sector and recommends changes to federal pay rates. In the most recent report on the issue, it found a substantial disparity between federal and private-sector pay rates, estimating that private-sector rates outpace federal rates for similar jobs by 24.09%.
–President Carter in August 1980 set the annual pay raise at 9.1%, roughly equal to the administration’s projection of a 9% inflation rate for 1981.
As the only organization solely dedicated to the general welfare of all federal workers and retirees, NARFE delivers valuable guidance, timely resources and powerful advocacy. For 100 years, NARFE has been a trusted source of knowledge for the federal community, Capitol Hill, the executive branch and the media.
