Biden to raise pay for federal employees effective Jan. 1.

President Biden announced Friday that he is giving all civilian federal employees a pay raise effective Jan. 1.

In a letter to congressional leaders, Biden said that pay will increase by an average of 2.7 percent overall. This includes a 2.2 percent increase in across-the-board pay and locality pay increases of 0.5 percent on average.

In the letter, Biden cites U.S. code which allows him to increase pay if he finds such action is appropriate, because of “national emergency or serious economic conditions affecting the general welfare.”

The adjustments will take effect “on the first day of the first applicable pay period beginning on or after” New Year’s Day, the letter said.

The increase is greater than the raise federal workers received this year, when former President Trump raised federal workers’ pay by 1 percent on average, without any increase in locality pay.

Biden had previously indicated his intent to raise worker pay in his proposed budget for fiscal year 2022.

The president signed an executive order in April that requires federal contractors to pay employees a $15 per hour minimum wage by March 30 of next year.