Federal employees can expect a pay increase in 2023 that is double the amount of any annual increase in over 10 years.
The Senate passed an appropriations bill which silently endorses the President’s recommendation for federal employees to receive a 4.6% pay increase next year. And while specific allocations of the raise have not been specified, traditionally .5% has been attributed to locality pay versus across-the-board pay.
Since 2014, the US has only increased pay by 1% to 2.6% per year. And although 4.6% seems like a significant increase, many were hoping for a 5.1% increase to make up for the lack in previous years as well as to account for recent inflation. Since the initial proposal in March, inflation is at 9.1% according to the Bureau of Labor and Statistics.
The odds of the 5.1% pay increase are very slim. And although it’s unlikely, if there is an increase over the average 4.6% that’s been approved, it would probably be allocated solely to the military.
This pay raise has not been turned into law yet. The Senate simply did not propose any roadblocks or counter-proposals to the White House’s recommendation. The President will be announcing the official number by the end of September.
Reflecting On This Pay Increase
Even with this pay raise increase, which is significant, there may still be a number of federal workers wondering how inflation will affect their retirement, and what they can do to prepare for that. The answer is that inflation can be devastating to retirement plans, but luckily there is a lot you can do a lot to prepare for it.
Even if you’re planning to retire in the next 6 months, you have options available to you as a federal employee that can make the impact of that inflation feel like almost no impact at all.
If you’re concerned about your retirement, whether retiring now or in the future, and you need to know what options are available to you, we’re here to help. Request a free benefits workbook today, and get the opportunity to speak with a benefits specialist qualified to answer your important questions.
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