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Feds to get 0.6 percent locality pay boost

President Obama sent Congress an “alternative pay plan” that will implement an average 0.6 percent across-the-board increase in locality pay effective Jan. 1.

President Obama sent Congress an “alternative pay plan” that will implement an average 0.6 percent across-the-board increase in locality pay effective Jan. 1.

Combined with the 1 percent basic pay increase, civilian federal employees covered by the General Schedule and certain other pay systems will get an average 1.6 percent pay increase at the beginning of 2017. It is the same total specified in the president’s alternative pay submitted to Congress in August.

The president is authorized to implement an alternative pay plan when budgets are under fiscal pressure.

“Since the pay freeze ended, annual adjustments for civilian federal employees have also been lower than private-sector pay increases and statutory formulas for adjustments to the General Schedule for 2014 through 2016,” the president wrote in his message to Congress. “However, we must maintain efforts to keep our nation on a sustainable fiscal course. This is an effort that continues to require tough choices under current economic conditions. Under current law, locality pay increases averaging 28.49 percent and costing $26 billion would go into effect in January 2017. Federal agency budgets cannot sustain such increases.”

The 2017 locality payment table is located here.

Reader comments

Thu, Jan 26, 2017

You should be thankful you get a locality pay at all. Some of us are federal employees but now on the GS scale

Tue, Dec 13, 2016

"Under current law, locality pay increases averaging 28.49 percent and costing $26 billion would go into effect in January 2017. Federal agency budgets cannot sustain such increases.” But balancing the budget at the cost of giving Federal employees a decent CoLA is fiscally responsible. How responsible is it when Federal employees can't pay rent/mortgages, buy food or pay for necessary medical procedures and prescriptions because their pay hasn't kept up with the cost of living in their areas. Denver's housing and rental markets have increased over 30% in the past 5 years, so even the current law's locality pay increases averaging 28.49 percent wouldn't make up for the years of pay freezes and 1% CoLA increases. But it is fiscally responsible for Federal employees to lose their homes, rely on Food banks, go without medical care, cut contributions to to their retirements. It is placing the burden on other Federal and State agencies/programs to make up the difference, and lowering the overall quality of life for all Federal employees. This makes no sense at all.

Tue, Dec 13, 2016 Art Wallace Hawaii

Our challenges hiring qualified GS professional medical staff in Hawaii will grow thanks to a low locality pay of 17%. Compared to 26% in places like San Diego.

Thu, Dec 1, 2016

What about help for the retirees. .03% COLA was very small.

Thu, Dec 1, 2016

wow this is great just think it does not cover real inflation, costs of medicine, food, etc another round of the same, they feel our pain

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