Serving Those Who Serve Logo
Blog Img 6 Pay Raise 23 Update

2023 Federal Pay Raise Update: Waiting on the White House

By Benefits Ben
12/08/2022
Although the 4.6% average pay raise for federal employees is pretty set – it has yet to be finalized.

Since the Biden Administration recommended a 4.6% pay raise for the federal workforce back in March, there has been little indication that Congress would move to implement a different percentage. However, the execute order that would finalize the upcoming year’s pay raise has yet to be signed. Last year’s 2.7% raise was enacted by a order from the President on December 22nd, 2021, and the order from the executive branch for the 2023 salary increase is expected to be signed around that same time this year.


Check Out Our No-Cost Webinars for Federal Employees and Annuitants –

REGISTER HERE

Efforts from both federal employee unions and a few members of Congress to push the upcoming raise to 5.1% have fallen flat on multiple occasions, and there is no indication that the White House will drift away from its initial 4.6% suggestion.

Locality Pay and Estimated Pay Tables

The Office of Personnel Management (OPM) has yet to release the 2023 General Schedule (GS) tables which will include the increased pay raise for each GS grade and step. For each of the designated localities, there is an individual table released. Factoring in the anticipated salary increase, FedSmith.com recently released an estimated table for the general pay schedule, but not for specific localities.

It is important to remember that the 4.6% raise is an average that takes locality pay into account. The “across-the-board” raise that all feds will receive is 4.1%. Different localities have different rates that may result in a raise that is slightly less or more than the 4.6% average. For example, in 2022, the San Jose/San Francisco/Oakland locality experienced an actual pay raise of 3.14% – which was 0.44% higher than the average of 2.7%. However, those working in higher grades and steps in localities with bigger locality boosts are prone to hit their salary cap much sooner than employees in similarly paying occupations in less expensive localities.

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. **

2023 Federal Pay Raise

2023 Federal Pay Raise Update

PODCASTS

FEDLIFE Podcast

The FedLife Podcast is your in-depth, biweekly deep dive into the world of federal benefits and retirement planning. Hosted by federal benefits expert Ed Zurndorfer and Dan Sipe of Serving Those Who Serve, each 30-minute episode unpacks the complexities of FERS and CSRS retirement, FEHB and Medicare, survivor benefits, tax planning, and more. Designed for federal employees and retirees who want more than just the basics, FedLife goes beyond the headlines to explore the rules, nuances, and strategies that can make a meaningful difference in your retirement. Remember: it’s your Fed life, make it a great one.

 

Image28

FED15 Podcast

The Fed15 Podcast is your weekly 15(ish)-minute briefing on federal benefits and financial planning, built specifically for federal employees and retirees. Hosted by Dan Sipe and Katelyn Murray of Serving Those Who Serve, each episode delivers clear, actionable guidance on topics like FERS and CSRS retirement, TSP strategies, FEHB, survivor benefits, tax planning, and more! Whether you’re five years from retirement or already there, The Fed15 helps you cut through the noise, avoid costly mistakes, and make confident decisions about your federal benefits.

 

Image29

GET MORE FROM YOUR
BENEFITS PACKAGE

SCHEDULE AN INITIAL CONSULTATION TODAY!