NTEU Endorses Legislation for 5.1 Percent Pay Raise in 2023

Washington D.C. – Federal employees would receive an average 5.1 percent pay increase next year under legislation introduced today in the House and Senate and endorsed by the National Treasury Employees Union.


The Federal Adjustment of Income Rates (FAIR) Act, sponsored by Rep. Gerry Connolly of Virginia and Sen. Brian Schatz of Hawaii, is essential to recruiting and retaining a highly skilled workforce spread across the country that is dedicated to serving the American people


The proposed raise consists of a 4.1 percent average increase across-the-board plus 1 percent for locality pay, which is important for employees in areas with competitive labor markets and high costs of living.


“The pandemic has caused an upheaval in the labor market and rising costs continue to chip away at federal employee paychecks. Our nation’s public servants deserve a pay increase that brings their salaries closer to their counterparts in the private sector,” said NTEU National President Tony Reardon. “We commend the Senators and Representatives who have come together to fight for a fair pay increase that will help federal workers in every state pay their bills, save for their children’s education and plan for a secure retirement.”


The 4.1 percent across-the-board raise is called for under the Federal Employees Pay Comparability Act of 1990. The figure is based on the annual increase in the Employment Cost Index. The Federal Salary Council has reported that federal employees earn 23.11 percent less than their private sector counterparts, and the FAIR Act can help narrow that gap.


“Every time there is a pay freeze or a below-market raise, federal employee salaries fall further behind, so NTEU plans to fight for the FAIR Act as a way to make up some ground and show our government workers that we value their contributions to our public health, national security and economic security, every day,” Reardon said.


NTEU represents about 150,000 employees in 34 federal agencies and departments.