Agencies Issue Pay Freeze Guidance

The following information was issued to the federal HR community and is based on information received by the Office of Personnel Management (OPM).

Extension of the Federal Pay Freeze

On March 26, 2013 President Obama signed legislation to continue the freeze on statutory pay adjustments for most Federal civilian employees until December 31, 2013.  The President also issued a memorandum on April 5, 2013 stating that any  increases in pay systems or pay schedules covering executive branch employees, or any general increases in covered employees’ rates of pay that could otherwise take effect as a result of the exercise of administrative decision should not be made until after Dec 31, 2013.   The President directed OPM to provide guidance to implement this memorandum.

Based on guidance provided by OPM, Federal agencies are to continue to comply with the original pay freeze guidance issued in December 2010.  For agencies, this means the agency guidance issued in Human Resources Management transmittal(s) remains in effect through Dec 31, 2013, or until such time additional information is provided by OPM, which may be beyond 2013.

In summary, all pay schedules remain frozen and may not be adjusted.

Elimination of the 2013 Pay Raise

Based on the March 26, 2013 memo issued by President Obama the proposed across-the-board pay increase of 0.5% has been eliminated for all Federal pay systems to include Title 5 General Schedule, Title 5 and Title 38 Special Rates, Senior Executive Service, Title 38 schedules, Special Locality Pay Systems schedules and all Federal Wage System (FWS) schedules.   In addition, the cost-of-living allowance for employees in non-foreign areas will remain at the 2012 levels.  We have no further information as to when an across-the-board increase will be authorized. This situation may last for multiple additional years.

OPM guidance can be found using the following link – http://www.chcoc.gov/transmittals/index.aspx