Bill Would Boost Federal Wages an Average 8.7 Percent

Press Release January 26, 2023

Washington D.C. – Federal employees would receive an average 8.7 percent pay raise in 2024 under legislation introduced today and endorsed by the National Treasury Employees Union.


“Using fresh economic data, Congress and the administration can make federal pay adjustments that reflect current conditions, and this year’s proposal is on target,” said NTEU National President Tony Reardon. “An average 8.7 percent raise is a bold step and precisely what federal employees around the country need to keep up with rising costs and to begin closing the gap with higher salaries in the private sector.”


The Federal Adjustment of Incomes Rates (FAIR) Act is sponsored by Sen. Brian Schatz of Hawaii and Rep. Gerry Connolly of Virginia. The proposed raise consists of a 4.7 percent across-the-board increase plus an average 4 percent for locality pay, which is important for employees in areas with competitive labor markets and high costs of living. 


“Federal employees are lucky to have Rep. Connolly and Sen. Schatz in their corner when it comes to pay,” Reardon said. “Federal employees in every city and state know full well that their paychecks don’t stretch as far as they used to, and the FAIR Act is an important acknowledgement of that.”


The 4.7 percent across-the-board raise is called for under the Federal Employees Pay Comparability Act of 1990 and is based on the annual increase in the Employment Cost Index.  The Federal Salary Council reported that last year, federal employees earned 24.09 percent less than their private sector counterparts, and the FAIR Act can help narrow that gap. The Council compares similar jobs in the public and private sector.


“The same economic conditions that prompted an 8.7 percent cost-of-living increase for retirees last year are relevant for the federal workforce as well,” Reardon said. “The monthly food and housing bills have grown and health insurance premiums have spiked, which makes it harder for the frontline workers we represent to pay their bills and still save for retirement or college tuition. NTEU is pleased to get behind the legislation that provides a fair wage for our nation’s civil servants.” 


NTEU represents employees in 34 federal agencies and offices.