President Biden Enacts Historic 5.2 Percent Pay Raise for Federal Workers, Drawing Criticism

In a move that has raised eyebrows and sparked criticism, President Joe Biden has crumbled to union pressure and signed an executive order enacting a historic 5.2 percent pay raise for federal workers.

This marks the largest increase for U.S. government employees since the Carter administration. The salary hike, which will take effect in January 2024, will benefit close to 2.2 million federal civilian workers.

The 5.2 percent raise is significantly higher than last year's increase and is even higher than the average raise in 1980, which stood at 9.1 percent. The military is also set to receive a comparable increase in January as part of the recently approved defense bill.

The decision to grant such a substantial pay raise to federal workers has reignited the ongoing debate over the value of government employees compared to their private sector counterparts. Republicans have long argued that federal workers are already compensated more generously than those in the private sector, while Democrats, who have close ties with federal employee unions, claim the opposite.

Typically, Congress has the authority to adjust the annual White House proposal on federal pay. However, this year, due to various internal struggles, Republicans in Congress have remained silent on the pay raise, allowing it to go into effect by default. Most lawmakers had already left Washington for the holidays, signaling the end of the legislative year.

Supporters of the pay raise argue that it will benefit families and stimulate economies in every state, as the majority of federal employees work outside the Washington region. Doreen Greenwald, the national president of the National Treasury Employees Union, emphasized the importance of higher salaries in retaining skilled workers and attracting new talent to federal agencies.

The 5.2 percent increase is based on the employment cost index, a measure of private-sector wage growth. It is divided into two parts: a 4.7 percent raise across the board, and the remainder varying based on local salaries in comparable private-sector jobs. Employees in the Seattle-Tacoma area will receive the largest raise at 5.7 percent, while those in the Miami area will see the smallest increase at 4.94 percent.

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The Biden administration's decision to implement this historic pay raise is likely to strengthen its alliance with federal employee unions. The administration has shown support for telework policies and has increased hiring in various agencies.

Furthermore, President Biden has taken steps to prevent a policy ordered by former President Donald Trump that could have led to the replacement of federal workers with loyalists.