President Biden has announced a federal pay raise for 2025, formalising a plan to provide civilian federal workers with an average increase of 2%. This is a significant reduction from the 5.2% increase in 2024 and the 4.6% in 2023. In a letter to congressional leaders dated August 30, Biden specified that federal employees will receive a 1.7% boost to their base pay, along with an average 0.3% increase in locality pay, resulting in an overall average increase of 2%.
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