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NARFE Celebrates Proposed 4.6% Average Federal Pay Increase for 2023

Alexandria, Va. – NARFE National President Ken Thomas issued the following statement in response to the Alternative Pay Plan for 2023 submitted by President Joseph R. Biden today: 

“The president’s alternative federal pay plan will provide hardworking public servants the largest pay increase since 2002. At an average of 4.6%, it tracks with recent increases in private-sector pay for the second consecutive year. 

 “As Americans face unprecedented price increases for food, fuel, housing and other staples, this pay raise demonstrates an understanding of the value of these hard-working civil servants and the jobs they do, as well as displays the administration’s commitment to recruitment and retention of talented federal employees. 

 “Keeping up with private-sector pay growth is essential to maintaining the federal government’s ability to recruit and retain a highly qualified and effective workforce. The pay increase will work to narrow the wage gap between federal employees and those in the private sector—who make as much as 22 percent more than public servants in comparable jobs—and strengthen the federal government’s ability to maintain a highly qualified and effective workforce.” 

Background 

  • The average 4.6 percent pay raise consists of a 4.1 percent across-the-board increase with a 0.5 percent average increase to locality pay rates. The figure is based on the annual change in private-sector pay as measured by the Bureau of Labor Statistics’ Employment Cost Index prior to the development of the president’s budget request. 
  • The Federal Salary Council analyzes federal pay in comparison to wages in the private sector and recommends changes to federal pay rates. In the most recent report on the issue, it found a substantial disparity between federal and private-sector pay rates, estimating that private-sector rates outpace federal rates for similar jobs by 22.47 percent. 

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As the only organization solely dedicated to the general welfare of all federal workers and retirees, NARFE delivers valuable guidance, timely resources and powerful advocacy. For more than 100 years, NARFE has been a trusted source of knowledge for the federal community, Capitol Hill, the executive branch and the media. 

CONTACT:
Jenn Rafael
NARFE Director of Communications and Marketing
jrafael@narfe.org | (571) 483-1270