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Setting the final—actual—amount of the federal pay increase effective each January is a multi-step process. One more step was checked off this week when the president sent a letter to Congress. In it, he told Congress that he plans to provide a 1% across-the-board increase with an additional 0.6% for overall locality pay raises.
This leaves one final step: the Office of Personnel Management has to release the actual pay tables, by locality. Since the 0.6% figure is essentially an overall number, some areas will receive locality pay increases below this figure, while others will receive locality pay rate increases slightly above this figure.
There is a caveat to be aware of. The president can move forward because Congress has been silent on federal pay in the funding bills for fiscal year 2017. The current continuing resolution runs out on Dec. 9 so Congress must act on another funding measure. It is still possible that Congress could act between now and the end of the year to set differing pay amounts—for both the across-the-board raise and for locality pay—including even blocking a pay raise entirely. However, if Congress continues to stay silent on a pay raise as expected, the president numbers will move forward.
A Little Background
The presidential letter contained an alternative locality pay plan for calendar year 2017 for federal workers in the General Schedule. Under current law, absent congressional action to establish a specific amount for locality pay, the president has the authority to designate an amount for locality pay rates. This so-called alternative plan for locality pay is required to be sent to Congress by Dec. 1 of the proceeding calendar year.
The president’s transmittal notifies Congress that 0.6% will be provided for overall locality pay rate purposes for calendar 2017. Under similar pay authority, the president issued an alternative pay plan in August setting a 1% General Schedule across-the-board pay raise for 2017. These two figures match the president’s original pay proposal outlined in his FY 2017 budget proposal to Congress released earlier this year.
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