PAY RAISE: Percent, Average Pay & Free Tips

Pay Raise

Senator Brian Schatz (D-HI) and Representative Gerry Connolly (D-VA) reintroduced the Federal Adjustment of Income Rates (FAIR) Act, which would offer federal employees an 8.7 percent pay raise in 2024. If passed, the legislation would grant a 4.7% basic pay boost plus a 4% average locality pay increase. The FAIR Act, according to the lawmakers, “restores years of lost wage increases for federal employees by ensuring that federal employees, who serve in all 50 states on behalf of constituents in every congressional district,” A similar bill sought a 5.1% federal pay raise in 2023 last year. The final pay raise for 2023 was 4.6%. Let’s look at federal, active duty, and military pay raise effective date for 2023

Federal Pay Raise 2023

President Biden wants to offer federal employees a 5.2% pay raise next year. That is the projected amount of the 2024 federal pay raise stated in the White House budget proposal for 2024, which was released this week.
The projected 5.2% pay raise is the amount that was expected to be suggested by the president based on earlier reports.

“The Budget provides an average pay raise of 5.2 percent for civilian and military personnel—and responds to the President’s request for agencies to lead by example in promoting federal worker organizing and collective bargaining,” according to a statement in the budget.

The 5.2% figure is an average raise, which means that if it is the final figure imposed, some federal employees will receive more and others will receive less. The federal pay raise normally includes one amount for an overall pay raise and another amount for locality pay.

Because locality pay rates vary by region, the ultimate amount of the pay raise varies when locality pay is applied. In 2023, for example, the pay hike was a 4.1% increase in base pay and a 0.5% increase in locality pay. This led to an average federal pay raise of 4.6% in 2023.

Does This Mean the 2024 Federal Pay Raise Will Be 5.2%?

Not necessarily. In recent years, the amount of the federal pay raise suggested by the White House has been the final figure, although it is established by a lengthy political process that includes both Congress and the president.
Congress will pass yearly federal pay rate changes in an appropriations bill in some years. When this happens, it is normally done through the Financial Services and General Government Appropriations Bill.

While this frequently occurs, there is no legal necessity for Congress to examine or consider a pay raise for federal employees. Congress has failed to approve legislation on the matter for many years.

The president can, and frequently does, recommend a pay raise figure based on the alternative compensation plan. This is normally done in the late summer, around August. It is frequently the same amount requested in the White House budget proposal presented earlier this year.

Of course, if Congress does not agree with the amount of the rise in the alternate payment plan, it can still approve new legislation defining the final amount. This is particularly likely to occur during an election year. With an election approaching, the thought process is likely to be that offering a raise could boost the prospects of candidates running for office and receiving more votes from their voters by giving them more money.

Congress has already presented legislation to set next year’s pay raise for federal employees at 8.7%, the same level as the 2023 COLA. The FAIR Act is legislation sponsored annually by Senator Brian Schatz (D-HI) and Congressman Gerry Connolly (D-VA). To date, none of these bills have been signed into law.

What Impact Does Inflation Have on the 2024 Federal Pay Raise?

Inflation has risen fast in recent years, and one of the most common concerns from FedSmith readers is that recent pay hikes have not kept pace with inflation.

It should be noted, however, that inflation is not a consideration in deciding the yearly federal pay raise. Unlike the yearly COLA for federal retirees, the pay boost for current federal employees is established by politics, therefore, political issues such as inflation could play a role in determining the annual pay raise, at least indirectly. To gain the support of the people, lawmakers may claim rising inflation as a reason for giving more money to federal employees by dangling the prospect of greater pay hikes.

Federal Employee Groups Endorse the FAIR Act

“The FAIR Act provides a significant pay raise to offset a tightening labor market, rising private-sector compensation, growing living costs, and an impending federal retirement wave,” said William Shackelford, National President of the National Active and Retired Federal Employees Association (NARFE). “A big wage rise in 2023 is vital to the recruitment and retention of an effective federal workforce, and we appreciate Congressman Connolly’s support for this endeavor.”

“Senator Schatz and Representative Connolly are outstanding advocates for the federal employees because they recognize how crucial it is that our country’s civil servants get given a fair salary,” said Tony Reardon, National President of the National Treasury Employees Union (NTEU). “The average 8.7 percent rise they are seeking for 2024 will help federal employees keep up with rising costs and help agencies recruit and retain the individuals we need to keep the country operating.” The FAIR Act, as always, reflects a thorough, analytical approach to federal pay levels, which is why NTEU heartily supports this legislation.”

Military Pay Raise 2023

In 2023, troops will receive the largest pay increase in 20 years. The military’s pay raises 2023 restrictions are vital for individuals serving and their families as everyone works to keep inflation at bay and their financial health in check. Learn more about the increases coming to military members and how they may affect your household.

What to Know About the Military Pay Raise 2023

Will the military receive a pay raise in 2023? Yes, service members will receive significantly more money in their paychecks in 2023, as the military pay raise is the greatest in 20 years. This is a welcome sight as Americans’ purchasing power continues to dwindle due to nationwide inflation.

Active-duty troops, drilling Guards, and Reserves will receive a 4.6% pay raise as a result of the annual military authorization bill. That is not only significantly higher than the last increase of 2.7% in 2022, but it is also the largest in two decades.

While the 2023 National Defense Authorization Act (NDAA) still needs to be approved by Congress, all signs are that it will. Junior troops will enjoy a $1,300 raise yearly, while senior officers will see a $2,500 increase.

The Largest Increase in 20 Years, But Don’t Get Too Excited

As of this writing, the 2023 NDAA has passed the House and is on its way to the Senate, where it is expected to pass. The military pay raise in 2023 is required to assist troops in keeping up with inflation rather than keeping up with the Joneses.

Although military members will appreciate having extra money in their pockets, and this rise is the largest in a long time, inflation will ensure that it does not feel as wonderful as it appears.

This isn’t the most encouraging aspect of the 2023 military pay raise, but it’s still crucial. Knowing how inflation affects your money is essential for maintaining your household’s finances in order and avoiding excessive risks.

It’s a terrible reality for both servicemen and civilian households. Dollars don’t go as far as they used to, and a rise in income may assist, but it won’t solve everything. Fortunately, wages aren’t the only item rising in the coming year.

If you spend enough time in the military, you’ll quickly realize that additional forms of compensation aren’t simply a nice luxury; they’re sometimes required to cover the expenditures of serving in the American Armed Forces.

The 2023 Military Pay Raise Isn’t the Only Increase

Bonuses were originally supposed to be a part of the 2023 NDAA, as it was previously stated that the comprehensive defense measure would contain a 2.4% inflation incentive for troops; this is no longer the case. Other forms of compensation, though, are already in play for some.

Active-duty personnel who live outside their base’s barracks will benefit from an 11% rise in Basic Allowance for Subsistence (BAS) rates. In 2023, BAS payments for officers will rise from $280.29 to $311.68, and for enlisted personnel, they will rise from $406.98 to $452.56.

Furthermore, the Basic Needs Allowance (BNA) qualification has been increased from 130% to 150% for personnel with household incomes at or above 150% of the poverty limit. Both proposals, along with the 2023 military rise, attempt to assist troops in the face of harsh inflation, but only time will tell.

The military pay raise in 2023 faces a difficult assignment in that it must sustain troops who have been struck hard by inflation while also increasing the perception of a volunteer army that is struggling to obtain volunteers. Ultimately, there are numerous elements to consider, but troops can benefit from any assistance they can get.

Military Pay Raise FY 2024

Following a historic military pay raise for the fiscal year 2023, it appears that the 2024 budget will continue the trend. Under President Joe Biden’s budget proposal, the military would receive the highest pay rise in decades.

A 5.2% increase in basic military pay is included in the Biden administration’s request for $842 billion in Pentagon funding for the fiscal year 2024. If passed, this would be the highest defense budget in history, with a $26 billion increase above what Congress budgeted for the Pentagon Department in 2023.

The yearly military raise is legally related to the Employment Cost Index and is set to take effect on January 1 at the amount stipulated in the index, regardless of any action taken by the President or Congress. Nonetheless, tax increases proposed by the president have typically been approved by Congress.

Establishing a 5.2% raise is greater than the 4.6% raise scheduled for the fiscal year 2023, which was already the greatest in a decade. As a baseline, a 6.9% increase was implemented in 2022.

Federal Pay Raise 2023 Effective Date

For certain federal civilian employees, the President changed the rates of basic pay and locality payments, effective in January 2023. The Presidential Order authorizes a 4.1 percent across-the-board raise for statutory pay systems and locality pay increases of about 0.5 percent of basic payroll, resulting in an overall average pay increase of 4.6 percent. This notice serves as public record evidence.

Is it a pay rise or a pay raise?

It’s a pay raise. A person’s salary is raised in American English. It is a rise in British English.

What is a good pay raise?

A good pay raise runs from 4.5% to 5%, and anything above that is regarded as outstanding. Based on the reasons you cite for a pay raise and the period since your last raise, you could request a 10% to 20% increase.

What’s another word for pay raise?

Salary increase. wage hike. wage increase. hike. “The workers are demanding a 4% salary increase, while management has only offered 3.6 percent.”

What does a pay raise mean?

A raise in your salary for accomplishing your job.

How do you mention a pay raise?

Explain in an email to your manager that you’d like to meet to discuss your remuneration. Explain your influence clearly and simply. Create compelling bullet points that illustrate how you’ve excelled in your role. Don’t bring up your coworkers’ salaries or any personal motivations you may have for needing more money.

Is a pay raise a promotion?

When an employee is promoted, they frequently earn a pay raise. A raise is frequently given as a reward for good performance or in conjunction with an increase in responsibility. In contrast to a bonus, which is usually a one-time event, a raise influences how much an employee earns each paid month.

How do you say pay raise professionally?

“I am writing to request an increase in my current salary. I’ve been with the organization for five years and believe my contributions merit a pay rise. With a $5,000 raise, the abilities and expertise I’ve accumulated during my time with the company are on spot.


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