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Federal Worker Pay Increase Proposed By White House

Federal Pay Increase Obama

JULIE PACE   01/ 6/12 02:17 PM ET   AP

WASHINGTON — An Obama administration official says the White House is proposing a 0.5 percent raise for civilian federal employees in its 2013 budget.

If Congress approves the measure, it would mark the first pay increase for federal workers since the two-year freeze President Barack Obama ordered in 2010.

Republican lawmakers have suggested extending the freeze for federal workers as one way to pay for a full-year extension of payroll tax cuts. A short-term, two-month extension of the tax cut is due to expire at the end of February.

The official says the White House notified agencies of the proposal Friday. The official spoke on the condition of anonymity because a formal announcement has not been made.

The White House proposal was first reported by The Washington Post.

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Filed by Michael Grass  |