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Salary Council Finds 31 Percent Federal Pay Gap

Federal employees on average are paid nearly 31 percent less than their counterparts in the private sector, according to a report dated May 2 from the Federal Salary Council. 

President Tony Reardon, a council member, often uses this disparity to advocate for higher pay raises for federal employees. However, political appointees on the Federal Salary Council are arguing for a new methodology to calculate disparities that would include non-salary benefits.

NTEU has spoken out against this proposal, which would inaccurately make the difference between public- and private-sector pay appear smaller than what they are. Any attempt to add benefits to the compensation analysis will require legislation, which NTEU would strongly oppose.

NTEU supported the report’s recommendation that Des Moines, Iowa, become a new locality pay area, and that Imperial County, Calif., be added to the Los Angeles locality pay area.

The council’s recommendations, as well as comments on the issues council members could not agree on, will be forwarded to the President’s Pay Agent, which will make a decision later this year. The President’s Pay Agent is comprised of the Labor secretary and the directors of the Office of Management and Budget and the Office of Personnel Management.

NTEU is now working with members of Congress to secure a raise for federal employees in 2020, after the administration again proposed a pay freeze for the new year.