Number: RL33158
Title: Federal White-Collar Pay: FY2006 and FY2007 Salary Adjustments
Authors: Barbara L. Schwemle, Government and Finance Division 
Abstract: Federal white-collar employees are intended by law to receive an annual pay adjustment and a locality-based comparability payment, effective in January of each year, under Section 529 of P.L. 101-509, the Federal Employees Pay Comparability Act (FEPCA) of 1990. The law has never been implemented as originally enacted; annual and locality payments pursuant to the statute have been reduced each year. Federal white-collar employees received a 1.7% annual pay adjustment and a 0.5% locality-based comparability payment in January 2007. President George W. Bush authorized the average 2.2% pay adjustment in Executive Order 13420, issued on December 21, 2006. Although the annual adjustment and the locality payment are sometimes referred to as cost-of-living adjustments, neither is based on changes in the cost of living.
Pages: 26
Date: April 12, 2007