NTEU Chapter 296
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  • President Issues Alternative Pay Plan for Calendar Year 2022
    Aug 31, 2021

    SUMMARY:  Today, the President sent Congress a letter transmitting an

    alternative pay plan for the calendar year 2022 pay raise for federal workers that would institute an average 2.7% pay increase consisting of a 2.2% across-the-board increase and 0.5% for locality pay.  

                Today, President Biden sent congressional leaders a formal letter transmitting an alternative pay plan for the calendar year 2022 pay raise for federal workers in the General Schedule that would provide an average 2.7% pay increase in January 2022.  

                Under the Federal Employees Pay Comparability Act, absent congressional action to establish a pay raise, the annual, across-the-board pay raise for most federal employees is set using a formula tied to the Department of Labor’s Employment Cost Index (ECI), which measures the rise in private sector pay.  Under the formula prescribed under this law, the ECI figure minus a half percent, the across-the-board pay increase should be 2.2 percent.  This amount is before any locality pay is added.  However, this same law also provides the President with the ability to set a different pay raise amount, which is required to be transmitted to Congress by September 1st of the preceding calendar year.  

    Today’s action formalizes the White House’s planned January 2022 pay increase as originally proposed earlier this year in the administration’s Fiscal Year 2022 budget request to Congress but provides additional details on how the increase will be allocated between an across-the-board increase and locality pay.  According to the alternative pay memo, the across-the-board increase will be 2.2% and 0.5% will be allocated for locality, resulting in an average increase of 2.7%, equal to the increase proposed for the military.

                It is still possible that Congress could act to provide a higher amount.  As of now, though overall FY 2022 congressional appropriations work remains incomplete as we near the start of the new fiscal year on October 1st.  As you may recall, the House-passed Financial Services and General Government (FSGG) appropriations bill, included in H.R. 4502, was silent on the issue of a federal employee pay increase, thereby deferring to the President’s proposal.  The Senate has not yet released its FSGG bill.  While NTEU has always supported the concept of pay parity with the military, we will continue to push Congress and the administration to support the FAIR Act (H.R. 392/ S. 561) and provide an average 3.2 percent increase for next year, consisting of an across-the-board increase of 2.2 percent and 1.0 percent for locality pay. 

    NTEU will continue to fight to ensure that federal workers receive a fair pay increase and will keep you updated on all administration and congressional developments that impact federal employee pay.  To find out more, click here.              


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