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 2014. In April, the president included a 1 percent civilian pay raise in his FY2014 budget request.

In reaffirming his support for a 1 percent pay raise the president noted that “civilian employees have already made significant sacrifices as a result of a three-year pay freeze.” Federal civilian pay has been frozen since 2010.

In the same letter, the president froze locality pay for federal civilian workers at the 2013 levels.

In separate letter, the president determined that members of the uniformed services should also receive a 1 percent pay raise in 2014. The president had proposed a 1 percent 2014 military pay raise in his FY2014 budget request.

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 would automatically go into effect.

To date, Congress has shown mixed support for a civilian pay raise.  The full Senate has not yet passed a FY2014 appropriations bill, but the Senate Appropriations Committee (SAC) included funding for a 1 percent civilian pay raise in its markup of the FY2014 DoD Appropriations bill. However, the House has expressed no support for the civilian pay raise. The four FY2014 Appropriations bills passed in the House so far (Military Construction/VA, Homeland Security, Energy & Water, and Defense) have excluded funding for a civilian pay raise. 

The military pay raise for 2014 will most likely be at least 1 percent. The House-passed FY2014 Defense Authorization bill provides a 1.8 percent military pay raise while the Senate Armed Services Committee (SASC) include a 1 percent military pay raise in its markup of the bill.