Federal Benefits Service

8.7% Pay Raise for Feds in 2024 

On Thursday, Democrats introduced legislation in both chambers of Congress seeking to give federal employees an average 8.7% pay raise in 2024. 

Introduced by Rep. Gerry Connolly, D-Va., in the House and Sen. Brian Schatz, D-Hawaii, in the Senate, The Federal Adjustment of Income Rates Act, would increase federal workers’ basic pay by 4.7% across the board next year, and includes an average 4% increase in locality pay. 

The FAIR Act has been an annual endeavor in recent years; last year, the bill proposed a 5.1% pay increase, divided between a 4.1% across-the-board basic pay raise and a 1% average increase in locality pay. Even though the bill is rarely acted upon, it should act as an important marker as lawmakers and the Biden administration discuss spending levels for fiscal 2024 while House Republicans demand cuts to government spending. 

Connolly called the proposal an opportunity to restore “years of lost wage increases” over the last decade caused by government shutdowns, hiring and pay freezes, and furloughs. 

“For years now, federal employees have risked their health and safety working on the frontlines of this pandemic,” Connolly said. “They were subjected to the Trump administration’s cruel personal attacks, unsafe work environments, pay freezes, government shutdowns, sequestration cuts, furloughs and mindless across-the-board hiring freezes. Still, our federal workforce serves with dedication and distinction every day. Federal employees are our government’s single greatest asset, and they deserve better.” 

The bill’s introduction drew sweeping support from unions and other federal employee groups. 

“The 8.7% increase listed in the FAIR Act is not a pay raise,” said Randy Erwin, national president of the National Federation of Federal Employees. “It is a minimum increase needed to offset the dwindling checking accounts of public servants, and it is critical to recruiting and retaining the best possible workforce.” 

Everett Kelley, the National President of American Federation of Government Employees said that a sizeable pay increase is especially important as the government tries to recruit new workers during such a tight labor market. 

“The latest report of the Federal Salary Council shows that federal worker wage lags behind the private sector by over 23%—making it difficult for agencies to recruit, hire and retain top talent and hurting the quality of services Americans receive,” he said. “The 8.7% pay increase included in the FAIR Act will not only reward federal employees’ hard work and help them keep pace with inflation, but it will also help government agencies remain competitive and deliver high-quality services to the American public.” 

Also, the National Active and Retired Federal Employees Association President, William Shackelford, reiterated Kelley’s thoughts. 

“The FAIR Act proposes a strong pay raise to counteract a tightening labor market and increasing private-sector pay, rising costs of living and an impending federal retirement wave,” he said. “A strong pay increase in 2023 is critical to the recruitment and retention of an effective federal workforce, and we’re thankful to have Congressman Connolly’s support for this effort.” 


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