President Obama last week notified Congress that he has determined that federal civilian employees should receive a 1 percent across-the-board pay raise in 2015. In March, the president included a 1 percent civilian pay raise in his FY2015 budget request.

The president also kept locality pay at the 2014 level.

President Obama acknowledged the sacrifices already made by federal civilian employees, such as a three-year pay freeze through January 2014. However, he cited the need to keep the country on a “sustainable fiscal course” as the reason for limiting the pay raise to 1 percent and freezing locality pay.

Each year the president is required under Title 5, section 5304a, U.S.C. to present an alternative pay plan for across-the-board pay and locality pay adjustments. Unless Congress acts the president’s alternative proposal will automatically go into effect.

To date, Congress has expressed general support for a 1% civilian pay raise.  The House-passed FY2015 Financial Services and General Government Appropriations bill was silent on the pay raise. This indicates passive support for the president’s 1% pay raise proposal in that it does not reject it. The Senate Appropriations Committee, in its approval of the FY2015 DoD Appropriations bill, also includes funds for a 1 percent civilian pay raise. No other appropriations committees’ action to date would prohibit a 1% civilian pay raise.

The military pay raise for 2015 will be at least 1 percent, as the president proposed in the FY2015 budget request. The House-passed FY2015 Defense Authorization bill provides a 1.8 percent military pay raise, while the Senate Armed Services Committee’s (SASC) approved bill includes a 1 percent military pay raise.