After two years of reasonable pay raises – 5.2 percent in 2024 and 4.6 percent in 2023 – all signs point to a 2.0 percent raise for federal employees in 2025. The latest signifier is the Fiscal Year 2025 spending bill for Financial Services and General Government which stayed silent on the issue of a pay raise, in effect endorsing President Biden’s request for a 2.0 percent raise. The uniformed military is slated to receive a 4.5 percent raise for 2025. FMA supports the 4.5 percent raise for active military and will push for pay parity for feds. Federal employees work side-by-side with their uniformed military colleagues and there is no excuse for failing to reward them evenly.

Federal pay has not kept pace with inflation, and retention of feds is at a severe risk. The Federal Salary Council reported in 2023 that federal workers earned more than 27 percent less than private sector counterparts, a growing disparity that will only force more of the best and brightest out of federal service.

FMA continues to support the Federal Adjustment to Income Rates (FAIR) Act (H.R. 7127 / S. 3688), legislation sponsored by Representative Gerry Connolly (D-VA) and Senator Brian Schatz (D-HI), which would provide a 7.4 percent pay raise in 2025.