Number: RL33732 Title: Federal White-Collar Pay: FY2008 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 The law has never been implemented as originally enacted; annual and locality payments pursuant to the statute have been reduced each year.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 2.5% annual pay adjustment and a 1.0% locality-based comparability payment in January 2008. President George W. Bush authorized the average 3.5% pay adjustment in Executive Order 13454, issued on January 4, 2008. 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: 19 Date: January 25, 2008