The White House has formalized a 4.6% pay increase for federal employees in 2023

In a letter addressed to congressional leaders on Wednesday, the White House publicly revealed intentions to give civilian government employees a 4.6% pay boost in 2023.

The 4.6% increase is the same amount recommended by the White House in their budget in March.

While Congress might adopt legislation to give a different sum for federal salary in 2023, based on precedent, this is unlikely at this time.

According to the letter, the federal pay rise for 2023 will be 4.1% across the board, with locality pay increases averaging 0.5%. Based on the final locality pay rates, certain employees may earn a lower or higher sum depending on where they work. The salary adjustment will take effect on January 1, 2023, the first day of the first applicable pay period.

The official 2023 federal pay tables will not be published until December when the White House releases an executive order, and the Office of Personnel Management (OPM) publishes the official 2023 federal pay tables.

Below is the letter from the President:

“Dear Madam Speaker: (Dear Madam President:)

I am transmitting an alternative plan for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems in January 2023.

Title 5, United States Code, authorizes me to implement alternative plans for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems if, because of “national emergency or serious economic conditions affecting the general welfare,” I view the increases that would otherwise take effect as inappropriate.

Accordingly, I have determined that it is appropriate to exercise my authority to set alternative pay adjustments for 2023 pursuant to 5 U.S.C. 5303(b) and 5 U.S.C. 5304a.

Specifically, I have determined that for 2023, the across-the-board base pay increase will be 4.1 percent and locality pay increases will average 0.5 percent, resulting in an overall average increase of 4.6 percent for civilian Federal employees, consistent with the assumption in my 2023 Budget.

Federal agencies have witnessed growing recruitment and retention challenges with Federal positions experiencing eroded compensation. 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. The American people rely on Federal agencies being managed and staffed by skilled, talented, and engaged employees, including those possessing critical skills sets, which requires keeping Federal pay competitive. 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.

The adjustment described above shall take effect on the first day of the first applicable pay period beginning on or after January 1, 2023.”

Contact Information:
Email: [email protected]
Phone: 8889193252