Government pay raise

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December 1, 2005

Bush approves 3.1 percent pay raise

President Bush has formally approved a 3.1 percent average pay raise for white-collar federal employees next year. The raise is included in the fiscal 2006 Transportation-Treasury appropriations measure (H.R. 3058), which Bush signed Wednesday.

The 3.1 percent increase provides pay parity between civilians and military service members. The Bush administration had proposed a 2.3 percent civilian increase, but as in previous years, the president ultimately accepted a larger raise backed by both the House and Senate.
Now President Bush must decide how the raise will be divided between an across-the-board increase and locality pay differentials. Earlier this year, the Federal Salary Council recommended that 2.1 percent be allocated to across-the-board pay and 1 percent to locality raises. Historically, the president has followed the council's advice.