2/11/15: President Obama’s budget recommendation for Fiscal Year (FY) 2016 includes a 1.3% across-the-board pay raise for both federal civilian and military personnel.  The proposed 1.3% pay adjustment would be effective January 2016. Purauant to the compensation agreement between the SEC and NTEU, SEC employees would receive this raise if it goes into effect.

While the level of the proposed average raise — 1.3 percent — is low, NTEU is pleased that the White House has included an overall pay raise in its budget proposal to Congress. However, NTEU is strongly advocating legislation that would provide a meaningful 3.8% pay raise, following a five-year period with a total of a 2% pay adjustment, and no increase in locality pay.  The Employment Cost Index (ECI), measured by the Bureau of Labor Statistics at the Department of Labor, tracks increases in wages and salaries for private sector workers, and by law is the reference point for federal employees’ pay.  The Federal Employees Pay Comparability Act (FEPCA) became effective in 1994, and was specifically designed to close the gap between public and private sector pay.  Under the law’s formula, the across-the-board pay raise for calendar year 2016 should be 1.8%.  NTEU is supporting a 3.8% pay raise for calendar year 2016 based upon this 1.8% across-the-board number, with the remaining 2% as “catch-up”  from the three-year pay freeze and the last two year’s 1% raises, which were lower than what was called for under FEPCA, and lack of locality pay adjustments.  The NTEU-supported Federal Adjustment of Income Rates (FAIR Act) legislation to provide a 3.8% pay raise — S. 164 and H.R. 304 — has been introduced in the new Congress by Senators Schatz (HI) and Cardin (MD), and Representative Connolly (VA). 

NTEU is committed to federal employees receiving a true pay raise, particularly at a time when the economy is recovering and private sector employers are increasing pay raises for both recruitment and retention purposes.