In 2025, President Joe Biden will give government workers an average pay raise of 2%. This will be made up of a 1.7% standard increase plus 0.3% based on location.
2% Average Increase for 2025 Amid Easing Inflation
Scripps News says that President Joe Biden has said that government civilian workers will get an average pay raise of 2% in 2025. This raise includes a standard 1.7% raise for all government workers plus an extra 0.3% for workers in certain areas.
The goal is to make sure pay are competitive while staying within the budget given the current state of the economy. The raise isn’t very big, but it’s meant to help the federal government hire and keep skilled workers who are essential to its operations.
The planned pay raise for 2025 is not as big as those in the past few years. Due to high inflation during those years, federal workers got big raises of 4.6% in 2022 and 5.2% in 2023. Since inflation has dropped to 2.9% as of July 2024, the rise in 2025 is more moderate to reflect the lower inflationary pressures.
A Balanced Approach to Fair Compensation and Budgetary Discipline
Even though inflation has gone down, the pay raise for 2025 is still less than the average wage growth in the private sector, which is 3.3% per year. The Biden administration wants to find a balance between fair pay and sticking to the budget.
As of January 1, 2025, when the new pay rates go into force, federal workers will get a raise that is in line with the current economy, even though it is less than what private sector workers are getting paid.
Even though the pay raise in 2025 will help government workers, it is still less than the 3.3% average pay raise in the private sector. By making this choice, the Biden administration hopes to find a balance between paying fair rates and keeping an eye on the budget.
The change is meant to support a skilled government workforce, but it might not fully slow down the rising cost of living, especially when compared to the bigger raises seen in the last few years.
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