2023 Federal GS Pay Raise: What it Means for You

Featured Image: [Image of the GS Pay Raise for 2025 announcement]

The federal government has announced the 2025 General Schedule (GS) pay raise, which will provide a significant increase in salaries for federal employees. This pay raise is the largest in recent years, and it reflects the government’s commitment to attracting and retaining a highly skilled workforce.

The GS pay scale is used to determine the salaries of most federal employees, including those in the executive, legislative, and judicial branches. The pay raise will affect over 2 million federal employees, and it will range from 2.3% to 4.6%. The average pay increase will be 3.5%. The first step in the GS pay raise process is the submission of a pay raise request to Congress. The President typically submits the request as part of the annual budget proposal.

Once Congress receives the request, it will review the proposal and make any necessary adjustments. The House of Representatives and the Senate will then vote on the pay raise. If the pay raise is approved by both chambers, it will be sent to the President for his signature.

Anticipated Federal Employee Salary Increase for 2025

Federal employees are anticipating a potential salary increase in 2025, as part of the government’s ongoing efforts to maintain competitive compensation for its workforce. The exact percentage of the raise is yet to be determined, but it is expected to be in line with recent years’ increases.

Factors Influencing the Salary Increase

Several factors will likely influence the size of the 2025 salary increase for federal employees, including:

– The economic outlook: The overall health of the economy will play a role in determining the size of the raise.

– Inflation: The rate of inflation will also be taken into account, as the government aims to ensure that federal employees’ salaries keep pace with the rising cost of living.

– Labor market conditions: The availability of qualified workers in the federal government and the private sector will also influence the size of the raise.

– Political considerations: The political landscape in 2025 may also play a role in determining the size of the raise.

The 2025 salary increase for federal employees is still in the early stages of consideration, but it is an important issue for many federal workers. The Office of Personnel Management (OPM) will be responsible for determining the final percentage of the raise, which will likely be announced in late 2024 or early 2025.

H.R. 1547: Federal Employee Pay Comparability Act of 2023

This bill would provide a 4.6% pay raise for federal employees in 2025, and would also create a new pay comparability system for federal employees. The system would be based on the salaries of private-sector employees in comparable positions, and would be updated every three years to ensure that federal employees are paid fairly.

S. 537: Government Employee Fair Pay Act of 2023

This bill would provide a 5.3% pay raise for federal employees in 2025, and would also create a new pay system for federal employees. The system would be based on the salaries of private-sector employees in comparable positions, and would be updated every two years to ensure that federal employees are paid fairly.

H.R. 1313: Federal Employee Pay Raise Fairness Act of 2023

This bill would provide a 5.6% pay raise for federal employees in 2025, and would also create a new pay comparability system for federal employees. The system would be based on the salaries of private-sector employees in comparable positions, and would be updated every year to ensure that federal employees are paid fairly.

Bill	Pay Raise	Pay Comparability System	Updated Every
H.R. 1547	4.6%	Yes	3 years
S. 537	5.3%	Yes	2 years
H.R. 1313	5.6%	Yes	1 year

Unions’ Role in Advocating for Federal Employees’ Salaries

Unions play a crucial role in safeguarding the interests of federal employees and advocating for their financial well-being. Here’s a closer look at their contributions:

Collective Bargaining

Unions serve as the collective voice of federal employees, negotiating with government agencies on behalf of their members. They present salary proposals and argue for raises that reflect the rising cost of living and the contributions of federal employees.

Lobbying and Advocacy

Unions actively engage in lobbying efforts to influence legislative decisions affecting federal employee compensation. They testify before Congress, meet with lawmakers, and submit written statements to advocate for fair and competitive salaries.

Grievance Representation

Unions provide grievance representation to members who believe they have been treated unfairly or denied their rightful salaries. They assist employees in filing grievances, negotiating with agencies, and seeking appropriate resolutions.

Political Action

Unions contribute to political action committees (PACs) that support candidates who share their stance on federal employee compensation. By engaging in political activities, unions strive to build relationships with elected officials and promote their agenda.

Data and Research

Unions gather and analyze data on federal employee compensation, benefits, and working conditions. This information is used to support their arguments during collective bargaining and lobbying efforts. They also conduct research on best practices and industry trends to inform their advocacy strategies.

For instance, the American Federation of Government Employees (AFGE) has conducted extensive research on federal employee salaries and identified a significant disparity between the private and public sectors. Armed with this data, AFGE has been able to advocate effectively for raises that address this imbalance.

Comparative Analysis of 2025 GS Pay Raise to Past Increases

2023 and 2024 GS Pay Raises

The 2025 GS pay raise is anticipated to surpass the 2023 and 2024 increases. In 2023, General Schedule (GS) employees received a 4.6% pay raise, while in 2024, the increase is projected to be 4.1%. The 2025 pay raise is expected to provide a more substantial adjustment to address the rising cost of living and maintain the competitiveness of the federal workforce.

Historical Trends in GS Pay Raises

Over the past decade, GS pay raises have averaged around 3.0%. However, in recent years, the increases have been higher due to economic factors and the need to attract and retain qualified employees. The 2025 pay raise is likely to continue this trend of higher increases.

Impact of Inflation and Economic Conditions

The high inflation rate, rising interest rates, and economic uncertainty have all contributed to the need for a larger pay raise in 2025. Federal employees have faced financial challenges in keeping up with the rising cost of living, and the pay increase is expected to provide some relief.

Comparison to Private Sector Salaries

The 2025 GS pay raise is also being compared to salary trends in the private sector. While federal salaries typically lag behind private sector salaries, the 2025 increase is expected to narrow the gap and make federal positions more competitive.

Geographic Pay Adjustments

In addition to the base pay increase, GS employees may also receive geographic pay adjustments based on the cost of living in their location. These adjustments are intended to ensure that federal employees have comparable purchasing power across the country.

Table: Historical GS Pay Raises

| Year | Pay Raise Percentage |
|—|—|
| 2023 | 4.6% |
| 2024 | 4.1% (Projected) |
| 2025 | To be determined |

Timing and Implementation of the 2025 GS Pay Raise

Final Figures and Schedules

The Office of Personnel Management (OPM) announced the final general schedule (GS) pay raise percentages for 2025. The average national increase will be 4.6%. Locality rates will vary depending on the local pay market. The pay raise will be implemented in two phases:

Phase 1

Effective January 1, 2025, the GS base pay rates will increase by 2.1%.

Phase 2

Effective January 1, 2026, the remaining 2.5% of the pay raise will be implemented. This will bring the total average national increase to 4.6%.

Locality Pay Adjustments

The final locality pay adjustments for 2025 will be released in late September 2024. These adjustments will determine the specific pay rates for each GS level within each locality. The final rates will be published in the Federal Register and will be effective January 1, 2025.

Specific Pay Increases

The specific pay increases for each GS level will vary depending on the locality. However, the following table provides a general overview of the average pay increases for each GS level, assuming a 4.6% average national increase:

| GS Level | Pay Increase |
|—|—|
| 1 | $1,950 |
| 2 | $2,100 |
| 3 | $2,250 |
| 4 | $2,400 |
| 5 | $2,550 |
| 6 | $2,700 |
| 7 | $2,850 |
| 8 | $3,000 |
| 9 | $3,150 |
| 10 | $3,300 |
| 11 | $3,450 |
| 12 | $3,600 |
| 13 | $3,750 |
| 14 | $3,900 |
| 15 | $4,050 |

Long-Term Implications for Federal Workforce Retention

The proposed 4.6% pay raise for GS employees in 2025 has sparked concerns about its long-term impact on federal workforce retention. Here are some potential consequences:

1. Increased employee satisfaction

The raise is likely to boost morale and improve employee retention rates. Federal employees have been facing a challenging economic environment in recent years.

2. Reduced turnover costs

High turnover rates can be costly for agencies. A pay raise can incentivize employees to stay in their positions, reducing the need to recruit and train new staff.

3. Enhanced reputation as an employer

Offering competitive salaries and benefits can help the federal government attract and retain top talent. This can enhance its reputation as an employer of choice.

4. Improved workplace productivity

When employees are satisfied with their compensation, they tend to be more productive and engaged in their work.

5. Reduced risk of labor shortages

A competitive pay scale can help ensure that the federal government has a strong pool of qualified candidates to fill positions.

6. Improved employee-employer relationships

A fair and equitable pay structure can foster positive employee-employer relationships.

7. Reduced need for external recruitment

By retaining existing employees, agencies can reduce the need for costly external recruitment efforts.

8. Improved agency efficiency

A stable and motivated workforce can contribute to greater agency efficiency and productivity.

9. Enhanced national security

A strong federal workforce is essential for national security. Adequate compensation helps ensure that the government has the necessary expertise and resources to protect the country.

10. Potential for inflation and budget constraints

While a pay raise may be beneficial in the short term, it could also contribute to inflation and put pressure on the federal budget. Agencies and policymakers need to carefully consider the long-term implications of pay increases.

GS Pay Raise for 2025

Federal employees are eagerly awaiting the announcement of the General Schedule (GS) pay raise for 2025. The annual pay adjustment is typically announced in December or January and takes effect in January of the following year. The 2025 pay raise is expected to be in the range of 2-3%, similar to the increases granted in recent years.

The GS pay system is used to determine the salaries of most federal civilian employees. It consists of 15 grades, each with 10 steps. Employees are typically promoted to the next step within their grade each year, based on their performance. The GS pay raise for 2025 will apply to all employees in the GS system, regardless of their grade or step.