President Obama’s proposal of a pay freeze for federal employees is a small step towards curbing government spending. However, a closer look shows there is less to it than meets the eye. In fact, many federal employees will still see their salaries increased.
While Obama’s plan would stop the annual across-the-board cost of living adjustment (COLA) for all federal workers, it will not stop workers from getting raises altogether. The freeze will not affect pay raises for job classification upgrades. As an official at the Office of Management and Budget told Federal News Radio, “employees will still be eligible for step increases.”
Step promotions — also known as “within-grade increases” — are mandated by statute. They are nearly automatic as long as an employee performs his job adequately. The law governing federal employee pay states, “a within-grade increase shall be effective on the first day of the first pay period following completion of the required waiting period and in compliance with the conditions of eligibility.”
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