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Robert Longley

Obama Extends Federal Employee Pay Freeze

By August 23, 2012

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President Obama has extended his two-year pay freeze for federal employees until at least April of 2013, or until Congress passes a Fiscal Year 2013 federal budget.

With the government still operating under a continuing spending resolution, rather than an adopted budget, Obama sent a letter to congressional leaders stating, "Congress should maintain current pay rates during the period of the continuing resolution." That continuing resolution expires in April 2013, unless Congress passes a full budget before then.

Had Obama not sent Congress his "alternative pay plan" extending the pay freeze, federal employees would have automatically received a pay increase based on private-sector salaries on October 1, 2012, the start of the government's 2013 fiscal year.

October 1, 2012 is also the legally mandated deadline for Congress to pass a budget, an event considered highly unlikely now due to the presidential election.

Once a budget is passed, or the continuing resolution expires next April, Obama told congressional leaders that he recommends federal employees get a 0.5% across-the-board pay raise, with locality-based pay bonuses to remain at 2012 levels.

"This decision will not materially affect the Federal Government's ability to attract and retain a well-qualified Federal workforce," wrote Obama.

While President Obama acknowledged in his letter that federal employees had already made "significant sacrifices" because of the pay freeze, "As our country continues to recover from serious economic conditions affecting the general welfare, however, we must maintain efforts to keep our Nation on a sustainable fiscal course. This is an effort that continues to require tough choices and each of us to do our fair share."

Last week, the National Treasury Employees Union (NTEU), one of the largest unions representing federal employees, stated that federal employees had already contributed $75 billion over the last 10 years towards deficit reduction and economic recovery through the two-year pay freeze and increases in employee retirement contributions for new employees.

Also See:
US Government Job Finder
Federal Employee Benefits
Ghastly Examples of Government Waste


August 30, 2012 at 7:01 pm
(1) Cherie Post says:

Fantastic! Now let’s see some taxes raised on the wealthy!

September 20, 2012 at 11:54 am
(2) rc says:

Taxes raised above $200,000, useless military bases closed through BRAC, mind you I am talking of the ones which accomplish no defense strategy aimed against American soil, ALL tax cuts for corporations which hire outside these united states cut off immediately, natural gas plants and refueling stations ramped up to provide jobs, ALL lobbying banned, no money allowed in political campaigns other than public funding, closing cost fees on mortgages reduced by 50%, education cost assistance increases and raised income limits expanded under FAFSA, foreign aid cut by 90%, congressional term limits cut to 4 years and healthcare on a national plan so that EVERYONE gets exactly the same coverages at a cost tied to their income. That, my friends, is progress. Call it what you wish, but this will turn this economy around in a hurry.

October 30, 2012 at 11:47 am
(3) jerry says:

Nice. What they don’t realize is that by freezing pay on federal employees, added to the fact that the VA system is cutting pay on it’s grunt employees, it makes a situation of employees leaving the federal system which in turn makes it more difficult for our vets trying to obtain VA benefits, etc… Too bad those who are making these decisions who are making 6 figure incomes can’t have their pay cut commensurate to what they have done to those lessers like me.

December 13, 2012 at 9:33 am
(4) sam says:

I’m a gs 4. I have a college degree am a vet yet can’t progress. Jobs where I live are limited in my field, and the jobs on base are…well lets just say the good ol’ boy system at work. This pay freeze these past few years have been a burden. I’m sure that congress and our CoC is not feeling the effects of it. Its funny how the people that need the raises get swept under the rug.

Funny thing tho, they still are giving out year end bonuses, and going on fiscal year-end spending sprees. Gotta love our leaders.

December 28, 2012 at 11:04 am
(5) Lia says:

The pay cut better go for the president, congress and Senate. Not just the middle class. You want us to do – than set the example..

December 30, 2012 at 5:11 pm
(6) Steve says:

Its not a “pay cut” Lia. They just aren’t getting a raise.

December 31, 2012 at 11:54 am
(7) Carole says:

Every elected official deserves a pay cut of at least $100,000.

January 5, 2013 at 9:09 am
(8) Barbara Pioreck says:

Congress does not deserve a raise. Their posturing games have cost Americans much. In my world pay raises were awarded for performance. This Congress is a joke and I cannot believe they were stupid enough to re elect the same speaker. IDIOTS all of them.

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