2010 Federal Pay Raise - Obama Proposes Only 2% Increase

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By MyFederalRetirement
Posted: 03-04-2009


In his budget proposal released yesterday, President Obama offered only a 2 percent increase in the 2010 federal pay raise for active employees -- a significant cut from last year's 3.9 percent adjustment, and 3.5 percent the year prior.

Obama proposed a 2010 pay raise for the uniformed military of 2.9 percent.

"As families are tightening their belts in this economic crisis across the country, the president ordered a freeze of White House senior staff pay," the budget states. "Federal employees also will be asked to do their part." The budget also says that the proposal puts "federal pay and benefit practices more in line with the private sector."

Some unions representing federal employees disagree with the proposal.

"We understand that these are tough times, but we are very concerned about breaking the historic linkage of civilian and military pay parity," said President Colleen M. Kelley of the National Treasury Employees Union (NTEU). "We want to find out why these pay raise numbers came out the way they did," the NTEU leader further stated, "and what went into the analysis regarding pay parity. We also want to know what other proposals the administration will be pursuing this year that will affect federal workers." Kelley added that military and federal civilian employees work side by side in support of our nation's security.

Other unions have shown more acceptance to Obama's proposed 2010 federal pay raise.

"AFGE is not happy with less than a full comparability pay raise but understand it given the severity of our nation's economic situation, including the crisis for public workers at the state and local level," said American Federation of Government Employees National President John Gage. "We understand that only modest steps can be taken this year to close the remaining pay gap between the federal and non-federal salaries."

Historically, Congressional actions during the annual federal pay raise process bolster the figure that is originally proposed by a president. Actual pay raise figures -- with their locality adjustments -- are not usually issued until December of each year.

Posted with permission by: MyFederalRetirement