White House calls for modest 0.5% pay raise for federal civilian workers

After a two-year freeze in federal workers’ salaries, President Obama will propose a 0.5 percent pay increase for civilian employees as part of his 2013 budget, senior administration officials said Friday.

The plan is likely to become part of an election-year confrontation between the White House and Congress over government spending. Republican lawmakers and presidential candidates have called for freezing basic pay rates for at least one more year, with some pitching it as a way to pay for extending the payroll tax cut.

Obama called for the pay freeze shortly after the November 2010 midterm elections, saying federal workers needed to share the burden of getting the deficit under control. The proposal disclosed Friday, which requires congressional approval, means that federal civilian employees would get a modest across-the-board pay jump next January.

Despite the freeze, raises have continued for workers who graduate into higher steps of the General Schedule pay system or who are promoted — a practice some GOP lawmakers say should be halted to help trim the federal debt.

Rep. Dennis A. Ross (R-Fla.), who chairs a House subcommittee overseeing the federal workforce, called the pay plan “pure politics” and labeled Obama “a public sector union puppet” for making the proposal.

“Federal employees are paid better, receive better benefits and enjoy unparalleled job security, compared to their private sector counterparts,” Ross said in a statement.

But administration officials, who were not authorized to speak publicly, said the White House would no longer support using pay freezes as a way to cut the federal deficit. And in a tight budget year, they said, the small increase was all they could afford.

The jump would be well below the 3.6 percent cost-of-living adjustment that took 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 an average of roughly 2 percent in 2011, according to the Bureau of Labor Statistics.

The White House informed federal agencies of the decision Friday in order to put the finishing touches on its 2013 budget proposal, which is expected to be unveiled in early February.

Virtually nobody with a federal paycheck has had a significant raise in recent years. Obama froze the salaries of top West Wing staffers and political officials after taking office in 2009. On Capitol Hill, lawmakers have not had a raise in four of the past six years.

No decision has been made on a raise for uniformed military personnel, the officials said, although troops received a 1.6 percent pay bump this month. Lawmakers and federal worker unions traditionally push to ensure pay parity between civilian and military personnel, the standard practice for many years before 2009.

Some rank-and-file federal workers said Friday that the proposed raise is nominal at best and that they think they’ve sacrificed enough.

“My rent went up 10 percent in the last two years,” said Jared Hautamaki, an Environmental Protection Agency employee, adding that the proposed 0.5 percent increase “is an insult to federal workers.”

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