President Joe Biden has finalized a 2% federal pay raise for the General Schedule (GS) employees, effective from the first pay period of 2025. While the increase is welcomed, it brings with it complications and controversy as various federal employees will see different amounts based on their locality.
The 2% federal pay raise is not uniform; rather, it comprises a 1.7% across-the-board base pay increase, along with locality pay adjustments averaging 0.3%. This means the total raise federal employees will receive varies by region, with some getting slightly more than the average, and others slightly less. For example, those working within the San Francisco-San Jose-Oakland area will benefit from the highest raises at 2.35%, whereas employees based around Cleveland will see only 1.88%.
The basis for the adjusted locality pay dates back to the Federal Employees Pay Comparability Act (FEPCA) established in 1990, which aimed to address wage gaps between federal employees and the private sector. Though FEPCA allows for significant annual pay raises to narrow this gap, no President has executed the full amount authorized since 1994, leading to disparities and raised questions. The most recent proposal reflects the lowest percentage raise federal employees have seen since Biden took office, particularly following the notable 5.2% increase granted just the previous year.
Despite calls for pay equity between civilian federal employees and military personnel—who are set to receive a proposed 4.5% pay raise from Congress—Biden’s decision appears resolute. The American Federation of Government Employees (AFGE) has fervently urged the President to reconsider, submitting letters advocating for a 4.5% increase for federal workers to maintain historical pay parity.
“There is a long tradition of parity in pay adjustments for civilian and military employees of the federal government,” the AFGE wrote, underscoring the need to honor long-standing practices. The Federal Salary Council, through AFGE, has emphasized returning to traditional pay adjustments after the deviation sparked by varying budgetary constraints.
A coalition of 27 Democratic House and Senate members echoed this sentiment, making requests to Biden to reconsider the fiscal budget and issue alternative pay plans. The lawmakers highlighted the dedication of both military and civilian employees who contribute to public safety and services. “Both military and civilian employees work hard to keep us safe,” they stated, making the case for equitable treatment.
This disparity has gained significant attention, and the legislative push continues as senators and representatives rally for greater pay proposals to mitigate the differences experienced by federal civilian workers. The Office of Personnel Management (OPM) has provided updates on local pay scales showing how the raise will apply differently across the country.
Biden must finalize these adjustments by December 31, and the anticipation continues as employees await the first check reflecting these changes. The polarized feedback highlights the broader issues of pay equity within the federal workforce and the balance of fiscal responsibilities at play within the governmental budget.
With every passing year, federal employees advocate for fair compensations parallel to the sacrifices they make. The finalization of the 2025 federal pay raise showcases the government's struggle to validate the contributions of all serving members—both military and civilian—in achieving their fundamental missions. The outcome is awaited by millions as it shapes their financial outlook for the upcoming year.
