SUMMARY: NTEU wrote to President Biden urging him to increase his proposed pay adjustment for 2023 to an average 5.1 percent due to inflation and the tight labor market. 

Today, I sent the attached letter to President Biden urging him to increase his proposed pay adjustment to an average 5.1 percent for 2023.  

Under the Federal Employees Pay Comparability Act of 1990 (FEPCA) (P.L. 101-509), federal white-collar employees should receive an annual, across-the-board pay adjustment as well as increases in locality pay rates, effective in January of each year.  The annual pay adjustment is calculated based on the Employment Cost Index (ECI), which measures changes in private sector wages and salaries.  While the President usually includes a federal employee pay proposal in his annual budget request to Congress, by law they may issue an alternative pay plan by September 1 each year that differs from the ECI formula. 

As you know, the President has proposed a 4.6 percent pay increase for federal employees for 2023, but his budget request was silent as to whether any amount is allocated for locality pay.  According to FEPCA, federal employees should receive a 4.1 percent pay increase in 2023 before locality pay is added.  However, given the increase in inflation and the competition for talented workers with the private sector, NTEU is advocating for the President to increase his proposed pay adjustment to match that proposed by the FAIR Act (H.R. 6398/S. 3518), which provides an average 5.1 percent increase consisting of a 4.1 percent across-the-board increase and an average 1.0 percent for locality pay. 

               Please be assured that NTEU will continue the fight, whether with the Administration or on Capitol Hill, for a fair pay raise.  I will update you on further developments.

Download the attachment to read the letter