President Barack Obama is exercising his authority to give federal civilian employees and uniformed service members a pay raise effective Jan. 1, 2017.
Civilian employees will receive an across-the-board raise of 1 percent, with an additional 0.6 percent adjusted in locality pay.
“I have determined that for 2017, across-the-board pay increases will be 1.0 percent,” Obama wrote in an Aug. 31 letter to congressional leaders. “Also, I will make a decision by November 30, 2016, regarding an alternative plan for locality payments under 5 U.S.C. 5304a. The alternative plan for locality payments will be limited so that the total combined cost of the 1.0 percent across-the-board base pay increase and the varying locality pay increases will be 1.6 percent of basic payroll, consistent with the assumption in my 2017 budget. These decisions will not materially affect our ability to attract and retain a well-qualified federal workforce.”