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someoldguy  
#1 Posted : Tuesday, July 6, 2021 11:14:35 AM(UTC)
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I'm sure everyone has seen the news that as of today, it looks like the 2022 federal pay raise will be 2.7% Better than last year, but its looking like inflation will be much higher this year (and likely for the next couple of years at least). The COLA for social security and federal pensions could be over 5% or nearly double the proposed pay raise.

It would certainly be possible to do another increase to locality pay rates to help address inflation, but has that ship already sailed? Does that 2.7% basically include an "average" locality pay increase?

No increase in locality pay for 2021 I don't think, but there were some increases in 2020... that was described as an "average" 2.6% pay raise across all locality areas (including Rest of US) as I recall.

Keep reading the various fed news sites for updates.
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TheRealOrange  
#2 Posted : Tuesday, July 6, 2021 11:46:48 AM(UTC)
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Originally Posted by: someoldguy Go to Quoted Post
I'm sure everyone has seen the news that as of today, it looks like the 2022 federal pay raise will be 2.7% Better than last year, but its looking like inflation will be much higher this year (and likely for the next couple of years at least). The COLA for social security and federal pensions could be over 5% or nearly double the proposed pay raise.

It would certainly be possible to do another increase to locality pay rates to help address inflation, but has that ship already sailed? Does that 2.7% basically include an "average" locality pay increase?

No increase in locality pay for 2021 I don't think, but there were some increases in 2020... that was described as an "average" 2.6% pay raise across all locality areas (including Rest of US) as I recall.

Keep reading the various fed news sites for updates.

Inflation isn't a factor in determining locality rates, so it's a non-starter. Locality pay is based on the cost of labor. That is, locality pay rates are are based on differences in Federal and non-Federal pay. Pay differences are measured for each locality pay area by comparing the base pay rates of Federal employees (under the General Schedule pay plan) in a geographic area to the annual rates generally paid to non-Federal workers for the same levels of work in the same geographic area. So, unless non-Federal pay increases in a particular area or in the "Rest of US," the locality rates won't change.
someoldguy  
#3 Posted : Tuesday, July 6, 2021 11:55:36 AM(UTC)
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Originally Posted by: TheRealOrange Go to Quoted Post
Inflation isn't a factor in determining locality rates,
That is correct, but there never seems to be a good correlation between changes in those factors and changes in the locality pay. And we see that the labor market is struggling to find people so those 'comparable wages' could also be going up.

In the end it is all a bit of political accounting... and there was no adjustment to locality pay last year.

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frankgonzalez  
#4 Posted : Tuesday, July 6, 2021 2:42:35 PM(UTC)
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Originally Posted by: someoldguy Go to Quoted Post
Originally Posted by: TheRealOrange Go to Quoted Post
Inflation isn't a factor in determining locality rates,
That is correct, but there never seems to be a good correlation between changes in those factors and changes in the locality pay. And we see that the labor market is struggling to find people so those 'comparable wages' could also be going up.

In the end it is all a bit of political accounting... and there was no adjustment to locality pay last year.

The segment of the labor market that is having issues hiring is at the lower end (ie retail and service industry) due to the historic low pay of that segment. It isn't impacting the the professional segments of the labor market very much. The segment of the labor market aligned to the most of the federal sector the issues are not pay, but the benefits and working conditions. ie Telework or remote work. Medical/Dental/Vision. Paid Time Off. And so on. Tele-/Remote-work are the things that the fed needs to consider more of going forward. After the past year, it is harder for management and agencies to say everyone needs to be in the same place 5 days a week. There will be some jobs that would need to be in place due to not needing certain aspects during covid when everyone is working from home, but will be needed once people are coming back to the buildings.

The rest? Can increase telework and remote work and perhaps decrease building space needs..and so save some tax dollars in leasing spaces, etc that can be put towards tech to improve connectivity. And so on.

You should have voted Cthulu...the greatest of all Evils
someoldguy  
#5 Posted : Saturday, August 28, 2021 12:07:50 PM(UTC)
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The latest word (see fedsmith.com) is that it will be a 2.2% across-the-board pay raise plus an average 0.5% increase in locality pay for an 'average' 2.7% pay raise in 2022. If recent history is any guide, high cost/high locality pay areas like DC-MD-VA will see a little higher bump to their locality pay leading to a higher overall pay raise.

Still early, Congress could override it.

Guess feds do not qualify for all this "human infrastructure" largesse going around.

Here's a bit more from federaltimes.com:
Quote:
President Joe Biden informed Congress Aug. 27 that he intends to exercise his authority to determine federal pay rates during a state of emergency.


Not clear if that means that there will be no opportunity for Congress to propose a higher number...

Edited by user Saturday, August 28, 2021 12:23:21 PM(UTC)  | Reason: Added some more info

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