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WASHINGTON – Federal employees across the country would receive an average 7.4 percent pay increase in 2025 under legislation introduced this week in Congress, a strong sign that lawmakers value the federal workforce and its important contributions to the American public. 

The Federal Adjustment of Income Rates (FAIR) Act is sponsored by Sen. Brian Schatz of Hawaii and Rep. Gerry Connolly of Virginia and has been endorsed by the National Treasury Employees Union. 

“All across the country, frontline federal employees are hard at work, delivering services to taxpayers and honoring their oath to uphold the U.S. Constitution. Giving them an average 7.4 percent pay raise next year would be a welcome recognition of their commitment to public service and an important step to closing the wage gap between public and private sector salaries," said NTEU National President Doreen Greenwald.

The proposed raise consists of a 4 percent across-the-board increase plus an average 3.4 percent for locality pay, which is very important for employees in areas with competitive labor markets and high costs of living. About 85 percent of all federal employees live and work outside of the Washington D.C. region, which means a raise will increase federal paychecks in every city and state across the country. 

“The sponsors of the FAIR Act understand very well that federal agencies need to offer competitive salaries in order to keep their experienced staff and recruit the next generation of federal employees,” Greenwald. “Federal employees, like all Americans, are just trying to keep up with their monthly bills and provide for their families, and an average 7.4 percent raise next year would help them do that.” 

The 4 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 in 2023, federal employees earned 27.54 percent less than their private sector counterparts, and the FAIR Act can help narrow that gap. The Council compares salaries for similar jobs in the public and private sector. 

“For the federal employees who do the day-to-day work of providing for the nation’s security, protecting the public health and ensuring economic fairness and prosperity, a fair pay raise in 2025 is a necessary investment to ensure skilled professionals continue to deliver government services,” Greenwald said.  

NTEU represents employees in 35 federal agencies and offices.