- Executive order finalizes long expected 5.2% pay raise for federal employees
- Congress approved 5.2% for military personnel and the DoD earlier this month
- 5.2% is an average pay raise when factoring in locality pay
President Joe Biden made the 5.2% average pay raise for the civilian with an executive order on December 21st. The percentage had been the probable raise since the White House budget was released in March. Congress stayed silent on the issue during budgetary debates over the summer, making 5.2% practically a sure bet. A potential shutdown and the re-introduction of the FAIR act, which would’ve made the federal pay raise 8.7%, could’ve potentially altered the federal raise’s projected course but neither appeared to have much impact.
How does this year’s pay raise affect your financial plan for 2024?
Attend our “Financial Planning for Feds” Webinar -
The 2024 National Defense Authorization Act (NDAA) was passed earlier in the month and that finalized a 5.2% salary increase for military and civilian personnel at the DoD. The military pay raise and the raise for civilian feds has only been different seven times since 2007: in 2007, 2010-2012, 2018-2019, and 2021.
The Locality Factor
It is always important to remember that locality is factored into the 2024 federal pay raise amount and this year’s 5.2% is a just an average. Every fed will get the “across-the-board” raise of 4.7% and then with locality pay taken into consideration, 5.2% is the rough average. So, some feds will be getting less than 5.2% and some will get more depending on where an individual lives and works.
--
Until Next Time,
You Might Also Enjoy this Podcast:
**Written by Benjamin Derge, Financial Planner, ChFEBC℠ 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 Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.
