Federal Pay Raise 2024 - How Did It Impact You?

Pay Raise Increase by 5.2% in 2024

U.S. federal civilian workers in applicable statutory pay systems, including General Schedule (GS), saw an average pay increase of 5.2 percent, following an order signed by President Biden for January 2024. This OPM guidance does not apply to senior political officials covered by a pay freeze. 

The Office of Personnel Management (OPM) released information regarding the 2024 Federal pay raise. It came into effect on the first day of the first applicable pay period beginning on or after January 1, 2024 (January 14, 2024, for the standard biweekly payroll cycle). 

Biden's executive order finalized the yearly determination of salaries for the applicable federal civilian statutory pay systems.

Federal Pay Increase Breakdown

President Biden's alternative pay plan, outlined in the executive order, combined a 4.7% across-the-board raise for statutory pay systems, including the General Schedule (GS), with locality pay increases costing approximately 0.5% of basic payroll. That was not a uniform 0.5% addition to each employee's pay. This adjustment introduced variations in pay, with some employees receiving raises higher than the 5.2% overall average, and others slightly less.

Locality pay plays a crucial role, resulting in varying raises across the nation. For instance, federal employees in the Houston locality received a 4.89% total increase, while those in the Seattle-Tacoma locality received a 5.70% total increase. Specific pay raise percentages are detailed in the linked 2024 tables; these total increases already incorporate the base and locality adjustments.

Check Your 2024 Pay

1. Confirm your 2024 pay system, grade, step, locality and applicable pay period with HR/payroll.
2. Consult the matching official 2024 table. OPM's memo sets out the effective-date rule. The linked Houston and Seattle-Tacoma tables already incorporate base and locality adjustments: do not apply another 5.2% increase to an adjusted 2024 rate.
3. Compare the applicable rate with your 2024 pay statement and ask HR/payroll about discrepancies. This checks the published rate, not take-home pay or total compensation.

For employees and families, assessing the 2024 adjustment starts with the applicable pay rate, household expenses and financial priorities—not the headline average alone. One way to interpret the adjustment is as recognition of federal public service, without assuming that every employee felt recognized or that recognition was its official purpose. For agencies, questions to consider include how compensation fits recruitment, retention and morale. Compare experiences across job classifications, localities and demographic groups rather than assuming identical increases or outcomes. These perspectives can help you evaluate the adjustment's significance; they do not establish measured workforce improvements or guarantee greater purchasing power.

Public vs. Private Pay Raise Increase

It is an ongoing debate whether the public or the private sector pays more, but the answer depends on the job, not just the raise percentage.

Compare U.S. companies' salary increases with the government pay raise for the same period, not a 2023 plan against a 2024 adjustment. 

Compare actual salary, take-home pay and overall compensation in private companies and the public sector using the terms of specific roles or offers.

Benefits to Check When Working in the Public Sector

• Job Stability: Does this role provide greater job security with less susceptibility to economic fluctuations or market uncertainties?
• Generous Benefits: Does the role offer a comprehensive benefits package, including healthcare, retirement plans, and paid leave?
• Work-Life Balance: Does this agency prioritize work-life balance, fostering a stable and predictable work environment?
• Mission-Driven Work: Does the role involve serving the community or contributing to societal well-being, offering a sense of purpose and fulfillment?
• Training and Development: Does the organization invest in training and development programs to enhance employees' skills and capabilities?

Benefits to Check When Working in the Private Sector:

• Competitive Compensation: Does this job offer more competitive salaries and performance-based incentives?
• Innovation and Technology: Does the company adopt the latest technologies and encourage innovation, providing employees with opportunities to stay on the cutting edge of their field?
• Career Advancement: Does the organization have clear paths for career advancement, with opportunities for promotions and professional growth?
• Entrepreneurial Opportunities: Would this path provide potential for entrepreneurship, allowing individuals to start their businesses or climb the corporate ladder?
• Diverse Industries: Does this job span a wide range of industries, offering you the flexibility to explore various sectors and career paths?

Ultimately, the choice between the public and private sectors depends on individual preferences, career goals, and values. Job seekers may prioritize factors such as job security, mission alignment, compensation, or growth opportunities based on their personal and professional aspirations.

Conclusion

For your 2024 pay, check the applicable rate rather than relying on the overall average. You should prioritize factors such as job security, mission alignment, compensation, or growth opportunities based on your personal and professional aspirations.