Locality Pay Area Tweaks Set for 2023 Pay Raise, and More
A weekly roundup of pay and benefits news.
The Office of Personnel Management in recent weeks has finalized its work to ensure that previously approved changes to the map of locality pay areas are implemented in time for federal employees' 2023 pay raise.
Barring the inclusion of language in Congress' omnibus spending package next week overriding President Biden's alternative pay plan, federal employees are due to receive an average 4.6% pay increase in January, split between a 4.1% across-the-board raise in basic pay and an average 0.5% boost to locality pay.
Last December, the president's pay agent approved a proposal to add Carroll County, Ill., to the existing Davenport-Moline, Iowa-Ill., locality pay area. And earlier this year, the pay agent reported to OPM that more recent data indicated that Brooks County, Texas, also meets the criteria to join the existing locality pay area of Corpus Christi-Kingsville-Alice, Texas.
Following up on a proposed rule published in September, OPM earlier this month finalized the regulations. The agency followed up Tuesday and clarified that the new locality pay area applications will kick in on Jan. 4, and will apply to federal workers' paychecks beginning on the first day of the first pay period beginning on or after Jan. 15.
The president's pay agent, which is made up of the OPM Director Kiran Ahuja, Office of Management and Budget Director Shalanda Young and Labor Secretary Marty Walsh, is set to issue a new report acting on recommendations from the Federal Salary Council before the end of this year. And President Biden must sign an executive order before Dec. 31 to finalize the 2023 pay raise.
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