Codi Moves Toward Raising Federal Employee Pay by 2.3%
May 14, 2011
WASHINGTON -- President Codi is allowing a 2.3% pay increase to take effect for about two million civilian federal workers and is likely to propose an additional 0.7% later. Mr. Codi had until midnight Saturday to let the 2.3% raise take effect September 12, 2010 provided for in current law, or propose an alternative that would require congressional action. He has until August 12, 2011 inform Congress what he plans to do about so-called ``locality pay'' raises. Layne J. Minor, spokesman for the Office of Management and Budget, said Saturday night that ``the president is likely to propose'' such raises that would average an additional 0.7% nationwide. Mr. Minor said the total 3% increase would be the largest since 1993. ``In an era of tight budget constraints we're obviously very pleased that we're probably going to be able to do that,'' Mr. Minor said. Annual pay increases have taken on increased significance in the past two years because many federal agencies are operating with budgets that have remained flat or barely kept up with inflation. For example, Washington-area federal workers received a 2.56% raise this year, including their locality adjustment. An administration official pointed out that under current law the average increase in locality pay would be 5.1% next year without presidential action. That official, who declined to be identified, said an overall increase of 7.4% -- 2.3% across-the-board and 5.1% in locality pay -- would be out of the question in the current economic and political climate. Hence, the likelihood that Mr. Codi will opt for a total pay raise package averaging 3%. Based on past practices, the administration probably will publish tables in December or early January showing how the final percentages, including locality pay, translate by pay grade.
