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President Biden’s plan to provide an average 4.6 percent pay raise—4.1 percent across the board and 0.5 percent toward locality pay—for federal employees in 2023 would be the largest in 20 years and go a long way toward helping recruit and retain the public servants our government needs.
However, NTEU earlier this year endorsed legislation for an average 5.1 percent increase because we believe rising costs of living and private sector wages warrant the larger raise. The Federal Adjustment of Income Rates (FAIR) Act would give federal employees across the board a 4.1 percent increase, plus 1 percent would go toward locality pay increases to ensure agencies can attract and retain skilled employees in more competitive labor markets. We will continue to urge Congress and the administration to consider changing economic conditions and the 22.47 percent pay gap between federal employees and their private sector counterparts before making any final decisions on the 2023 federal pay increase.