While the White House already recommended a 2.7% Federal Raise in its 2022 budget suggestions, the formal announcement supports the likelihood of a 2.2% across-the-board raise with a .5% locality pay increase.
At the end of August, the Biden Administration made the announcement that the next annual federal pay raise will be 2.2%. That’s across-the-board for all federal civilian workers. For those who receive locality pay, they’ll see an additional .5% tacked on to their annual salary starting January 1, 2022 – making their overall pay increase 2.7%. It is expected that those in the military will see a pay raise of 2.7% as well, but this has not been formally declared by the present executive branch.
The National Treasury Employees Union (NTEU), the National Active and Retired Federal Employees Association (NARFE) applauded the raise, but are still pushing for a 3.2% raise. Virginia Representative Gerry Connolly has been their ally in Congress on this issue, as he proposed the FAIR Act back in February. His bill included a 3.2% federal pay raise, which he and the unions still want. Their position now is that they agree with the President’s decision on the 2.2% across-the-board raise, but want the .5% boost for those covered by locality pay to get an additional 1% instead, making their total 3.2%.
--
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **