Federal Pay Raise 2024 - How it Impact You?

Pay Raise Increase by 5.2% in 2024

Federal workers will see an average pay increase of 5.2 percent, with higher raises in certain high-income regions, following an order signed by President Biden. This marks the largest raise for U.S. government employees since the Carter administration. 

The National Finance Center (NFC) has released crucial information regarding the 2024 Federal pay raise. The salary boost for nearly 2.2 million federal civilian workers is the biggest since 1980, surpassing last year's raise by 0.6 percentage points. It came into effect on January 14, 2024, for most federal employees. 

Similarly, the military saw a similar increase in January as part of the $886 billion defense bill passed by Congress. Biden's executive order finalizes the yearly determination of government worker salaries, a process that typically sparks debates in Congress over the worth of federal employees compared to those in the private sector.

Federal Pay Increase Breakdown

President Biden's alternative pay plan, outlined in the executive order, combines a 4.7% across-the-board raise for most General Schedule (GS) employees with an average 0.5% adjustment based on locality. This adjustment introduces variations in pay, with some employees receiving raises higher than the 5.2% 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 will see a 4.89% increase, while those in the Seattle-Tacoma locality will experience a 5.7% raise. Specific pay raise percentages for different localities are detailed, providing a comprehensive overview of the adjustments.

Public vs. Private Pay Raise Increase

It is an ongoing debate between whether the public or the private pay more, but for 2024, the clear winner is the public sector.

According to a survey by Willis Towers Watson, U.S. companies plan to give salary increases of 4.3% in 2023. Whereas, the government pay raise was 5.2%. 

Why the gap? Well, it's all about their styles – private companies ride the waves of the job market, while the public sector keeps it chill and stable, making them the salary champs for the coming year.

Benefits of Working at the Public Sector

• Job Stability: Public sector jobs often provide greater job security with less susceptibility to economic fluctuations or market uncertainties.
• Generous Benefits: Public sector employees commonly enjoy comprehensive benefits packages, including healthcare, retirement plans, and paid leave.
• Work-Life Balance: Government agencies tend to prioritize work-life balance, fostering a stable and predictable work environment.
• Mission-Driven Work: Many public sector roles involve serving the community or contributing to societal well-being, offering a sense of purpose and fulfillment.
• Training and Development: Public sector organizations often invest in training and development programs to enhance employees' skills and capabilities.

Benefits of Working at the Private Sector:

• Competitive Compensation: Private sector jobs can often offer more competitive salaries and performance-based incentives, attracting top talent.
• Innovation and Technology: Private companies tend to adopt the latest technologies and encourage innovation, providing employees with opportunities to stay on the cutting edge of their field.
• Career Advancement: Private sector organizations often have clearer paths for career advancement, with opportunities for promotions and professional growth.
• Entrepreneurial Opportunities: In the private sector, there's potential for entrepreneurship, allowing individuals to start their businesses or climb the corporate ladder.
• Diverse Industries: Private sector jobs span a wide range of industries, offering employees 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

Ultimately, the choice between the public and private sectors hinges on individual preferences, career goals, and values. The blog emphasizes that job seekers should prioritize factors such as job security, mission alignment, compensation, or growth opportunities based on their personal and professional aspirations.