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FAIR Act: 7.4% Pay Increase for Federal Employees in 2025

The FAIR Act proposes a significant increase in compensation for federal employees in 2025. This means individuals working in government agencies and positions covered by statutory pay systems and prevailing rates will receive a raise, directly impacting their personal finances. The total proposed increase is 7.4%, consisting of a base pay raise and a locality pay adjustment.
Key points
Base Pay Increase: Basic pay rates for federal employees (under statutory pay systems) will increase by 4.0% for calendar year 2025.
Prevailing Rate Employees: Employees whose wages are set based on prevailing rates will also receive a 4.0% increase in basic pay for fiscal year 2025.
Locality Pay Adjustment: An additional increase of 3.4% will be applied to locality pay for calendar year 2025, bringing the total proposed raise to 7.4%.
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Additional Information
Print number: 118_HR_7127
Sponsor: Rep. Connolly, Gerald E. [D-VA-11]
Process start date: 2024-01-30