(PatriotWise.com) – Shortly before Christmas, President Biden issued an executive order giving federal civilian employees a bump in pay. However, the increase still does not keep up with the rate of inflation.
“General Schedule” federal employees will receive a 4.1 percent raise plus a 0.5 percent cost-of-living adjustment. The increase took effect on January 1.
While the average rate increase is 4.6 percent, the raises will vary by local area, with the highest raise going to federal employees working in Seattle, Washington who will receive a 5.15 percent boost in pay.
This year’s pay increase is higher than the 2.7 percent increase granted last year and is the largest pay increase since 2002. It will impact approximately 2.2 million employees of the Executive branch.
The president ordered the raise through an executive order since this year’s $1.7 trillion omnibus spending package did not include a federal pay raise, despite Congress legislating raises in past years.
In August, the president sent a letter to outgoing Speaker of the House Nancy Pelosi and vice president of the Senate Kamala Harris notifying them of his plan to increase federal pay through an executive order.
In his letter, Biden cited “national emergency or serious economic conditions affecting the general welfare” as his reason for implementing “alternative plans” to adjust the pay of the federal civilian workforce covered by the General Schedule. He said the pay increases “that would otherwise take effect” were “inappropriate” so he decided it was “appropriate” for him to “exercise my authority” to set up an alternative pay raise for 2023.
But even Biden’s “alternative” isn’t enough of a raise to keep up with inflation.
The Consumer Price Index report released in early December by the Bureau of Labor Statistics showed consumer prices rose 7.1 percent in the previous 12 months.
Meanwhile, grocery costs have risen 12 percent in the last year.
While federal civilian workers will no doubt welcome a pay increase, Biden’s executive order won’t take the sting out of Biden’s economy.
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