President Joe Biden signed an executive order on Monday, which is set to bring good news for most federal employees as they head into the new year. The White House announced that starting in January 2025, most civilian federal employees will receive a 2% pay increase. This raise is part of a series of scheduled increases planned throughout the year.
The executive order specifies that the 2% pay increase is an average, with actual raises for employees being determined by their location. Therefore, some individuals may see a slightly higher or lower increase than the average 2%.
In addition to the pay raise for civilian federal employees, military members will also benefit from a 4.5% pay increase as part of the 2025 National Defense Authorization Act. This follows a significant 5.2% pay raise earlier in the year for federal employees, marking the largest increase in four decades.
The Office of Personnel Management highlighted that the pay raise acknowledges the dedication and service of the federal workforce to the American people. It also aims to help the federal government remain competitive in the labor market by attracting and retaining a highly qualified workforce, all while taking into account the fiscal constraints faced by federal agencies in the fiscal year 2025.
President Biden has been active in recent announcements related to federal employees. In addition to the pay raises, he recently declared Christmas Eve as a day off for the more than 2 million federal employees in the country. As per the executive order signed by Biden, all executive departments and government agencies will be closed on December 24, 2024, allowing employees to enjoy the day before Christmas Day with their loved ones.
