US President Joe Biden is expected to propose a 5.2 percent pay raise for federal employees in his upcoming budget, which is likely to be announced on Thursday. This pay raise for federal employees is expected to be the largest increase that the White House has proposed since Jimmy Carter’s presidency.
This proposal for a salary increase will be included in Biden’s upcoming budget for the new fiscal that starts from October 1, reported Washington Post quoting a senior federal official. The new salary boost is likely to come into effect in January, it added.
This would be the largest pay increase for around 2.1 million federal employees since a 9.1 percent increase in 1980, the report added. However, it would still be lower than the 8.7 percent raise, which was called by several democrats and federal employee unions.
The report further added that the house Republicans are still likely to oppose this increase, as the conservative majority has pledged to reduce federal spending. They also asked to hold the federal workforce accountable for what they have criticised as poor customer service at some agencies.
Biden’s recommendation for the largest raise in over 40 years underscores his administration’s tight partnership with federal employee unions, who can only bargain over working conditions but not wages as these are set by Congress.
Biden, within days of taking office, had revoked Trump’s orders that aimed to restrict employees’ appeal and bargaining rights from a large class of employees. Federal employees’ pay hikes are negotiated during deliberations in Congress over government spending.
Interestingly, this is the third year that Biden has relied on guidance from a federal pay law that asks for hikes to a Labor Department index of private-sector wage growth.
(Edited by : Vivek Dubey)
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