2021 Cola Increase Federal Employees

Right now the best guess is an average raise of 1 starting in january.

2021 cola increase federal employees. The president s fiscal year 2021 budget proposal which was released today contains a proposal for a 1 pay raise for federal employees for next year. The general scale pay raise for 2021 is set to be 1 unless congress can change it the military s pay is set to increase 3 next year as things stand now in the dog days of july salaries for military servicemen are authorized to increase by 3 in 2021 thanks to the national defense authorization act. Some years are exceptions.

The budget proposal also recommends revising the government s contribution rate to base it on a plan s score from the federal employees health benefits fehb program plan. In addition to the raise the budget proposal says it would also be increasing funds available for on the spot and ratings based performance awards regarding pay it added. The administration has attempted to make pay more flexible and performance based since across the board pay increases.

Retirement pay benefits. If there is no increase in the cola for 2021 we would be reliving the experience of 2010 2011 and 2016. Congressional budget office comparing the compensation of federal and private sector employees 2011 to 2015 april 2017.

The latest cpi w figures suggest a small cola for federal retirees in 2021 but the author points out that it may be the start of a more positive trend. The administration proposes a one percent pay increase for federal civilian employees for calendar year 2021 while also increasing funds available for on the spot and ratings based performance awards. Proposed 2021 federal pay raise and slowing frequency of step increases.

Modify the government contribution rate to federal employees health benefits program premiums. Covid 19 impact on 2021 cola pay raise and wep gpo federal news network. The trump administration released its proposed 2021 federal budget while representatives in congress introduced a bill that would give federal employees a 3 5 raise for 2021 the white house releases a budget proposal annually around february to provide a guideline or blueprint for congress.

2021 will not be one of the exceptions. The road to making a decision on a new pay rate for federal employees in the coming year is always unpredictable with numerous bumps and potholes. Given the impact of the pandemic on the economy it is unlikely that retirees will be getting a cola in january 2021.

In a sign of good and surprising news the june cpi w jumped from 249 521 in may and to 251 04 in june which is higher than the q3 cpi w. For those who may be wondering if the lack of a cola would dictate federal employees not receiving a pay raise in 2021 these figures demonstrate there is not always a pattern of one group receiving an increase while another group does not receive an increase.