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2022 Federal Pay Raise Update: FAIR Act Proposed Again

By Benefits Ben
02/01/2021

3.2% Federal Pay Raise for 2022 indicated in proposed legislation.

The Federal Adjustment of Income Rates (FAIR Act) was introduced for the 6th time in Congress. Since 2016, the bill itself has been proposed annually but has never become law. This year, Virginia Representative Gerry Connolly and Hawaii Senator Brian Schartz brought forth the legislative item in support of the federal workforce, and with praise by federal employee advocacy groups.

Here is a chart of every year’s pay raise as it was written in the previous year’s version of the FAIR Act versus what actual percentage came into fruition:

Year Proposed in FAIR Act Actual Pay Raise
2017 5.3% 2.6%
2018 3.2% 1.6%
2019 3.0% 1.9%
2020 3.6% 3.1%
2021 3.5% 1.0%
2022 3.2% ??
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The figures above and the new number for 2022 all include locality pay. The actual pay raise proposed in the newest FAIR Act was 2.2% “across the board” plus 1% locality.

The Biden Administration has until August to submit an alternate plan. With the White House’s budget proposal in the works for Fiscal Year 2022, there might be clues ahead pertaining to the new President’s opinions on implementing next year’s federal pay raise.

Until Next Time,

Benefits Ben, STWS

The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers  and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **

Pay Raise 2022 - image: capitol hill on the back of dollar bill

2022 Federal Pay Raise

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