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Obama Freezes Locality Pay at 2010 Levels

President Obama announced that he is freezing federal civilian locality pay rates for 2011 at this year’s levels.

President Obama announced that he is freezing federal civilian locality pay rates for 2011 at this year’s levels.

Invoking his emergency powers, Obama on Nov. 30 said he was freezing locality pay amid concerns that the “country faces serious economic conditions affecting the general welfare.” He also established applicable 2011 locality pay rates for Alaska and Hawaii that are based on 2010 locality pay levels.

“As the economic recovery continues, the time has come to put our nation back on a sustainable fiscal course, an effort that requires tough choices and shared sacrifice,” Obama said. “This decision will not materially affect our ability to attract and retain a well qualified federal workforce.”

The locality pay announcement comes just one day after the White House proposed a two-year freeze on civilian pay for federal employees. The administration said the proposed freeze for 2011 and 2012 would save $2 billion for the remainder of Fiscal Year 2011. The freeze would apply to all civilian federal employees—including those at DoD and those in alternative pay plans, but would not extend to military personnel.

To see more, go to: www.whitehouse.gov/the-press-office/2010/11/30/letter-president-regarding-alternative-pay-plan.

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