Salary council: Feds earnings not comparable to private sector
- By Sherkiya Wedgeworth
- Oct 22, 2020
Federal employees earn about 20 percent less than those in the private sector performing similar jobs, the Federal Salary Council reported at its annual meeting this week.
According to the new calculations, on average feds made 23.1 percent less than their private sector counterparts, a gap that accounts for the locality pay adjustments in certain areas of the country with a higher cost of living and higher overall wages.
The Office of Personnel Management on Oct. 21, provided the salary information to the council. The council then determines the pay gap using U.S. Department of Labor data that compares the salaries.
“The Federal Employee Pay Comparability Act (FEPCA) was passed in 1990 specifically to narrow that gap, but it’s never been fully implemented. Instead, too many years of zero or below-market raises for federal workers have been unable to keep up with private companies, and the gap persists,” National Treasury Employees Union National President Tony Reardon, a member of the council, said.
“The pay gap is a national problem because it affects federal agencies and employees in every city, town and suburb where job candidates too often opt for the bigger private sector paycheck,” he added
In 2020 federal employees received an average pay increase of 3.1 percent, which may have helped narrow the gap from 26.71 percent in 2019, NTEU said in a news release.