Daily Dose: A Pay Increase For Federal Employees?

The new year is bringing new hope of a pay increase for federal workers, whose wages have been frozen since 2010.

As the administration prepares its 2013 budget proposal, rumor has it a modest increase in pay for civilian federal employees will make its way into the proposal. Ed O’Keefe of the Washington Post has the full scoop.

Federal Eye: White House Proposes 0.5 Percent Pay Increase For Federal Workers

“The modest across-the-board pay jump would be the first increase for federal workers since before a two-year freeze began in late 2010. Raises for within-grade step increases and promotions have continued during the freeze.”

“But the pay bump is well below the 3.6 percent cost of living adjustment that went into effect this week for Social Security recipients and most federal retirees to keep pace with inflation. It is also far below private sector earnings, which climbed roughly 2 percent in 2011, according to the Bureau of Labor Statistics.”

This issue is sure to receive its fair share of attention throughout the budget process and be a point of debate as the 2012 elections heat up. Congress and the candidates will express their opinions, but what do you think?

On the heels of a multi-year pay freeze and ahead of anticipated cuts in federal spending, is the time right for an increase? Does this represent overdue relief, or is it too small to make a difference? How effectively does it walk the line between attracting and retaining talent, while being conscious of the impact on the federal budget?

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