Biden plans 4.6 percent average pay raise for federal employees in 2023

President Biden on Wednesday announced plans for a 4.6 percent average pay raise for civilian federal employees in 2023.

In a letter announcing the plans to Congress, the president noted “growing recruitment and retention challenges” for federal agencies and “eroded compensation” in federal positions. 

For civilian federal employees covered by the General Schedule and some other pay systems, Biden said there would be a 4.1 percent across-the-board base pay increase and a 0.5 percent average locality pay increase — resulting in a 4.6 percent average pay raise overall. 

“Multiple years of lower pay raises for Federal civilian employees than called for under regular law have resulted in a substantial pay gap for Federal employees compared to the private sector,” Biden wrote.

“This alternative pay plan decision will allow the Federal Government to better compete in the labor market to attract and retain a well-qualified Federal workforce.”

Biden is making the change under a U.S. code authorizing the president to increase pay if he deems such a change appropriate due to “national emergency or serious economic conditions affecting the general welfare.”

Biden announced an average pay raise of 2.7 percent overall for civilian federal employees in 2022 under the same code.

Wednesday’s news makes official earlier reports of the increase.

The new pay scale will take effect Jan. 1, 2023, per the letter.