Letter to the Speaker of the House and President of the Senate on an Alternative Plan for Pay Adjustments for Civilian Federal Employees

I am transmitting an alternative plan for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems in January 2025.

Title 5, United States Code, authorizes me to implement alternative plans for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems if, because of “national emergency or serious economic conditions affecting the general welfare,” I view the increases that would otherwise take effect as inappropriate.

Accordingly, I have determined that it is appropriate to exercise my authority to set alternative pay adjustments for 2025 pursuant to 5 U.S.C. 5303(b) and 5 U.S.C. 5304a.

Specifically, I have determined that for 2025, the across-the-board base pay increase will be 1.7 percent and locality pay increases will average 0.3 percent, resulting in an overall average increase of 2.0 percent for civilian Federal employees, consistent with the assumption in my 2025 Budget.

We must attract, recruit, and retain a skilled workforce with fair compensation in order to keep our Government running, deliver services, and meet our Nation’s challenges today and tomorrow.  This alternative pay plan decision will continue to allow the Federal Government to employ a well‑qualified Federal workforce on behalf of the American people, acknowledging wage growth in the labor market and fiscal constraints.