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President Sets Average 1.3 Percent Increase For 2016 Pay


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The White House issued an alternative pay plan setting the across-the-board pay raise at 1 percent next year with an additional 0.3 percent allocated to locality pay.

NTEU National President Tony Reardon said, “While any increase in pay is needed and welcomed, the federal workforce deserves a higher raise. An overall increase of 1.3 percent is simply not enough and is not in line with current economic data.”

He noted that federal salaries have increased by just 2 percent in the last five years, which includes the three-year freeze. In that time, private-sector wages rose 8.3 percent, according to the Department of Labor’s Employment Cost Index.

Reardon said fair pay will be one of the union’s key priorities in the coming year. “NTEU will continue to push for a more meaningful raise for the federal workforce, one that would help the government stay competitive with private-sector employers and help employees cope with rising costs for everything from housing to tuition to food,” he said.

Federal employees have not had a locality increase in five years and are falling further and further behind in high employment cost areas. NTEU has historically supported locality pay and was pleased that the President’s Pay Agent approved 13 new locality areas NTEU had pressed for in its work on the Federal Salary Council.

The Office of Personnel Management said regulations for the 13 new locality pay areas are on track to be made final in time to qualify employees in those locations for locality pay in 2016. Unfortunately, the 0.3 percent locality adjustment is so small it will have little impact on the large pay gaps in high labor cost areas.

 

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