Connolly, Schatz Reintroduce FAIR Act to Give Feds a 7.4% Raise in 2025 (2024)

Today, Congressman Gerry Connolly (D-VA) and Senator Brian Schatz (D-HI) reintroduced the Federal Adjustment of Income Rates (FAIR) Act, a bill that would provide federal employees with a 7.4 percent pay increase in calendar year 2025. Connolly and Schatz previously introduced similar legislation in the 115th, 116th, and 117th Congresses.

The federal government has a history of chronic underinvestment in its most valuable asset: the federal workforce. Federal employees have had to endure government shutdowns, pay freezes, hiring freezes, and lost pay as a result of sequestration-related furloughs. According to the Federal Salary Council, Federal employees on average earned 27.54 percent less in 2023 than their counterparts in the private sector. In addition, the 2023 Office of Personnel Management’s Federal Employee Viewpoint Survey governmentwide management report found that over the last three years, pay satisfaction declined from 67 percent to 57 percent. A lack of competitive pay hurts the recruitment, retention, and quality of the civil service.

The Biden Administration has worked to reverse these trends, providing federal employees a 4.6 percent pay raise in 2023 and a 5.2 percent raise in 2024. Nonetheless, federal employee pay increases have failed to keep pace with rising labor and living costs. The FAIR Act’s wage adjustment restores years of lost wage increases for federal employees by ensuring that federal employees, who serve in every state and territory on behalf of constituents in every congressional district, earn an average pay increase of 7.4 percent.

“Our nation’s dedicated civil servants deserve respect and fair compensation,” said Congressman Connolly. “Federal employees served the American people diligently during an unprecedented global pandemic. Before that, they were subjected to the Trump Administration’s cruel personal attacks, unsafe work environments, pay freezes, government shutdowns, sequestration cuts, furloughs, and mindless across-the-board hiring freezes. Still, they come to work each day ready to serve with dedication and distinction. Federal employees are our government’s single greatest asset. The FAIR Act is a critical step toward recognizing their contributions and providing fair and just compensation."

“Whether inspecting our food, conducting medical research, or caring for our veterans, federal workers play an important role in our everyday lives and deserve pay which reflects that,” said Senator Schatz. “After years of pay freezes, our bill gives these dedicated public servants a much-deserved raise.”

“Congressman Connolly and Senator Schatz propose a strong federal pay raise via the FAIR Act to counter a resilient labor market, steadily increasing private-sector pay, continued price increases, and the persistent gap between private-sector and federal pay for similar jobs. We’re grateful for their support for hardworking public servants, and ensuring federal pay rates approach levels needed to recruit and retain an effective federal workforce,” said William Shackelford, National President, National Active and Retired Federal Employees Association (NARFE).

“Last year, federal employees again lost ground in the fight for a fair wage,” said Randy Erwin, National President, National Federation of Federal Employees (NFFE). “Pay increases for 2024 were not enough to offset rising inflation and the widened federal-private pay deficit, which rose 5% and is now over 27%, according to the most recent report from the Federal Salary Council. Congress must understand that to attract and retain a skilled workforce that best serves the American people, we need to pay our civil servants competitive wages. The FAIR Act is a simple, yet effective tool to ensure all federal employees can earn a living wage and their communities receive the best essential services from the federal government. Thank you to Representative Connolly and Senator Schatz for their commitment to the civil service.”

“The Federal Adjustment of Income Rates Act of 2024 will provide federal employees a civilian pay raise this year that is truly reflective of the extraordinary services that they provide to the public each and every day,” said Matthew Biggs, President, International Federation of Professional and Technical Engineers (IFPTE). “The FAIR Act also helps federal agencies recruit and retain the best and brightest by making federal pay more competitive with private sector pay. IFPTE applauds Congressman Connolly and Senator Schatz for their continued leadership on fairness in federal compensation.”

"NTEU strongly supports the FAIR Act by Rep. Connolly, Sen. Schatz and other lawmakers who value the federal workforce and understand the need to raise employee salaries in 2025. Federal pay fell even further behind the private sector last year and the FAIR Act is an important step in addressing that gap. By making the federal government a more competitive option for skilled workers, federal agencies can recruit and retain the employees necessary to better serve the American people. The federal employees we represent live and work in every city and state across the country, and a fair pay raise will improve the economic security of their families and their communities,” said Doreen Greenwald, National President, National Treasury Employees Union (NTEU).

“Federal fire fighters protect our nation’s most valuable and sensitive assets, yet their pay averages just $16 an hour. This low wage is not sustainable for recruiting and retaining our best,” said Edward A. Kelly, General President, International Association of Fire Fighters (IAFF). “These men and women deserve pay that recognizes the sacrifices and risks they undertake in the service to our country. A COLA of 7.4% is just one step we must take to ensure federal fire fighters a fair, living wage. I applaud Representatives Representative Gerald Connolly (D-VA) and Senator Brian Schatz (D-HI) for their continued support of fire fighters and introducing the Fair Act.”

“Federal managers deserve to be treated with respect for their efforts and the work they have performed over many years. Every job they hold and perform daily is because of a congressional mandate. It is not too much to ask that, in return, feds be given the ability to maintain a living wage that provides for them and their families. We are grateful for Congressman Connolly and Senator Schatz’s continued leadership on behalf of the entire federal community with the introduction of the FAIR Act. They are steadfast supporters of the workforce and FMA enthusiastically endorses the FAIR Act. We look forward to working with Congressman Connolly and Senator Schatz to build support for this important bill,” said Craig Carter, National President, Federal Managers Association (FMA).

“AFGE wholeheartedly supports the FAIR Act and thanks Representative Connolly and Senator Schatz for its introduction,” said Everett Kelley, National President, American Federation of Government Employees (AFGE). “After more than two decades of lagging pay that has led to federal employees earning nearly 28% less than their private-sector counterparts, it is time to start making progress toward parity in federal pay. This bill takes a crucial first step in that direction.”

“Whether they’re responding to natural disasters, keeping the food supply safe, or helping our working families receive the benefits they need to survive, federal employees keep our communities strong. Their pay should reflect the essential nature of their work, and that is why AFSCME strongly endorses the Federal Adjustment of Income Rates Act. The 7.4% raise for 2025 will help retain more quality federal employees, while allowing agencies to recruit more passionate individuals to public service. We applaud Rep. Gerry Connolly and Sen. Brian Schatz for their leadership on this important bill,” said Lee Saunders, President, American Federation of State, County and Municipal Employees (AFSCME).

The FAIR Act is cosponsored in the House by the following Members of Congress: Derek Kilmer (D-WA), Melanie Stansbury (D-NM), Jan Schakowsky (D-IL), Lloyd Doggett (D-TX), Stephen Lynch (D-MA), Gwen Moore (D-WI), Eleanor Holmes Norton (D-DC), John Sarbanes (D-MD), Kweisi Mfume (D-MD), Matt Cartwright (D-PA), Barbara Lee (D-CA), Dina Titus (D-NV), Val Hoyle (D-OR), Glenn Ivey (D-MD), Wiley Nickel (D-NC), Paul Tonko (D-NY), Nydia Velazquez (D-NY), Don Beyer (D-VA), Dwight Evans (D-PA), Deborah Ross (D-NC), Danny Davis (D-IL), Robert Garcia (D-CA), Rashida Tlaib (D-MI), Dutch Ruppersberger (D-MD), Jamie Raskin (D-MD), Shontel Brown (D-OH), Colin Allred (D-TX), Nanette Barragan (D-CA), Suzanne Bonamici (D-OR), Don Norcross (D-NJ), Bill Foster (D-IL), Bobby Scott (D-VA), Hillary Scholten (D-MI), Jim McGovern (D-MA), Lisa Blunt Rochester (D-DE), Joe Neguse (D-CO), David Trone (D-MD), Dan Goldman (D-NY), Joyce Beatty (D-OH), Chellie Pingree (D-ME), Earl Blumenauer (D-OR), Pramila Jayapal (D-WA), Jennifer McClellan (D-VA), Doris Matsui (D-CA), John Garamendi (D-CA), Emanuel Cleaver (D-MO), Mark Pocan (D-WI), Diana Degette (D-CO), Jerrold Nadler (D-NY), Katie Porter (D-CA), Jennifer Wexton (D-VA), Bill Keating (D-MA), Seth Magaziner (D-RI), Grace Meng (D-NY), Maxwell Frost (D-FL), Ilhan Omar (D-MN), Joaquin Castro (D-TX), Ann McLane Kuster (D-NH), and Maxine Waters (D-CA).

Text of the FAIR Act is available here.

Connolly, Schatz Reintroduce FAIR Act to Give Feds a 7.4% Raise in 2025 (2024)

FAQs

What is the federal salary increase for 2025? ›

This includes a 5.2 percent 2024 federal pay raise and 2.0 percent 2025 federal pay raise consistent with the President's pay proposal.

What is the pay raise for the military in 2025? ›

As details of DoD's 2025 budget get hammered out, it's looking increasingly likely that service members at the bottom end of the military pay scale will see a substantial pay bump next year.

How much is the 2024 federal pay raise? ›

The Biden Administration has worked to reverse these trends, providing federal employees a 4.6 percent pay raise in 2023 and a 5.2 percent raise in 2024.

What is the increase for federal workers? ›

Feds are still slated for a 2% average pay raise in 2025 per House appropriations bill - Government Executive.

What will the federal minimum wage be by 2025? ›

The Raise the Wage Act of 2021 (HR 603) would increase the federal minimum wage in five annual steps, from $7.25 to $15 in 2025, with annual increases thereafter indexed to the median wage.

What is the cost of living raise for 2025? ›

COLA 2025 estimate

The Senior Citizens League adjusted its 2025 COLA forecast in August to 2.57%, down from 2.63% last month. The estimate changes monthly based on the consumer price index data.

Will VA disability pay increase in 2025? ›

2025 VA Disability Rates. 2025 VA disability pay rates, which are effective December 1, 2024, have a confirmed year over year increase of 2.63% based on the latest cost-of-living adjustment (COLA) announced by the social security administration. COLA assumed rate was announced July 18, 2024.

Is the federal retirement pay increase in 2025? ›

The count toward the January 2025 federal retirement COLA remained flat in the latest accounting as the inflation index used to set that adjustment decreased by 0.1 percentage points in June.

How big will the 2024 military pay raise be? ›

This year's military pay raise will be 5.2 percent, making it one of the biggest annual pay raises in the last 40 years. Military retirees and disabled veterans will also see a cost-of-living increase of 3.2 percent in their monthly checks.

Is GS-12 a high position? ›

The GS-1 through GS-7 range generally marks entry-level positions, while mid-level positions are in the GS-8 to GS-12 range and top-level positions (senior managers, high-level technical specialists, or physicians) are in the GS-13 to GS-15 range.

Do federal employees get a pension? ›

You must work at least 5 years with the Federal Government before you are eligible for a FERS Federal Pension, and for every year you work, you will be eligible for at least 1% of your High-3 Average Salary History.

Will federal minimum wage increase in 2024? ›

While some states are on a schedule for annual increases to eventually reach $15 an hour, others still adhere to the federal minimum. Although the current federal minimum wage of $7.25 has not budged since 2009, more than 20 states have provided additional increases in 2024.

What is 2024 cola for federal retirees? ›

What is the amount of the cost-of-living adjustment? For the year 2024, annuitants who retired under CSRS will receive 3.2 percent increase and those who retired under FERS will receive a 2.2 percent increase.

What is the cost of living increase for employees in 2024? ›

For 2024, the COLA increase is 3.2%, calculated based on the rise in the CPI-W from the third quarter of 2022 through the third quarter of 2023.

What is the federal wage? ›

The federal minimum wage for covered nonexempt employees is $7.25 per hour. Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

What is the wage growth forecast for 2025? ›

Employers—at least so far—are pegging overall salary budget increases even lower, WTW found, with organizations predicting a 3.9% jump in 2025. Empsight similarly projects that total salary increase budgets will be 4% for 2025, while median merit budgets are projected to be 3.5% for 2025.

What is the pay raise for the NDAA 2025? ›

Compensation: The bill fully funds the 4.5% pay raise for servicemembers requested in the President's budget request.

What is the VA Cola increase for 2025? ›

Recipients of Social Security checks and veterans benefits payouts could see a cost-of-living adjustment of less than 3% in 2025, the lowest mark since before the COVID-19 pandemic, according to an independent watchdog group.

What is the budget for OPM 2024? ›

Budget Request – Fiscal Year 2024. The U.S. Office of Personnel Management (OPM) Office of the Inspector General (OIG) is requesting $45,784,000 for its fiscal year (FY) 2024 budget. This request is composed of $7,066,000 from the Salaries and Expenses (S&E) General Fund and $38,718,000 from the OPM Trust Funds.

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