Federal civilian workers are set to receive an 'across-the-board' base pay increase in 2025, according to a statement from the White House. Government employees can expect an average raise of approximately 2%. In his statement, President Joe Biden emphasized the need to attract, recruit, and retain a skilled workforce through fair compensation, which is crucial for the smooth operation of the government, delivery of services, and tackling the nation’s challenges. He further stated that this alternative pay plan decision acknowledges wage growth in the labor market while considering fiscal constraints, ensuring the federal government continues to employ a well-qualified workforce.

The raise, scheduled to take effect on January 1, 2025, is notably lower than those in recent years. For context, civilian workers received a 5.2% increase in 2024 and a 4.7% boost in 2023. While the upcoming 2% raise may seem modest, it underscores the government's effort to balance competitive compensation with economic realities. The acknowledgment of these factors demonstrates a commitment to maintaining an effective federal workforce capable of meeting the evolving needs of the American people.