President Biden is expected to propose a 4.6 percent raise for federal employees in 2023, although it is unknown what percentage of this would be a locality pay increase. If adopted by Congress, 4.6 percent would be the largest raise in decades. How does this raise stack up in context?

From 2009 to 2022, the average annual across-the-board raise for feds was 1.29 percent, not counting locality pay increases. In comparison to that, a 4.6 percent raise is more than three and a half times the average raise. However, the Consumer Price Index (CPI), which serves as a primary measure of inflation, was up 7.5 percent from January 2021 to January 2022. Seen in this context, a 4.6 percent raise is, relative to cost of living, actually a 2.9 percent pay cut.

This potential raise should also be measured against the Federal Adjustment of Income Rates (FAIR) Act (H.R. 6389 / S. 3518). In January. Rep. Gerry Connolly (D-VA) and Sen. Brian Schatz (D-HI) introduced this bill, which would give federal employees a 5.1 percent pay raise in 2023. The bill contains a 4.1 percent increase in base pay, and an additional 1 percent increase in locality pay.

FMA has officially endorsed this legislation and will work to support Rep. Connolly and Sen. Schatz to help it pass.