Biden signs off on 2% pay raise for feds

By Kevin Bogardus | 01/02/2025 01:50 PM EST

The president didn’t maintain parity between civilian and military wage hikes in 2025.

Treasury check

This May 8, 2008, photo shows blank checks on an idle press at the Philadelphia Regional Financial Center, which disburses payments on behalf of federal agencies, in Philadelphia. Matt Rourke/AP

President Joe Biden delivered a holiday downer for federal employees, authorizing a substantially lower pay raise for them this year despite his Democratic and labor allies’ wishes.

Biden signed an executive order last week that set up a 2 percent pay increase in total for the government’s civilian workers in 2025. The salary bump consists of a 1.7 percent wage hike across the board as well as an 0.3 percent increase in locality pay.

The pay increase was effective on the first day of the pay period beginning on or after Jan. 1.

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In addition, the Office of Personnel Management issued guidance to agency and department heads saying Biden’s order approves the raise in base and locality pay, “reflecting an overall average pay increase of 2.0 percent.”

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