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. Both the House and Senate versions of the Fiscal Year 2025 spending bill for Financial Services and General Government stay 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 is advocating 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 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.