The funding legislation has its own impact on federal pay. If you’re working for the federal government, expect a 1 to 3 percent pay raise every year. For the 2021 calendar year, the proposed pay raise is 1 percent with added increases on the financial awards and cash bonuses federal employees can get.
The GS Pay Scale (General Schedule Pay Scale) is updated every year because of the pay raise and the raise is mostly based on the inflation and changes to the cost of living. Due to COVID-19, the lawmakers pushed for a higher pay raise and as much as 3.5 percent was in the talks but it has now been finalized and the 1 percent pay raise has been applied to the GS pay tables.
OPM Releases the GS Pay Tables for the 2021 Calendar Year
The Office of Personnel Management (OPM) is expected to share the adjusted pay tables for the 2021 calendar year as well as the hourly rates. Since the newly increased pay will be effective starting from January 1st, 2021, the OPM is likely to share the pay tables a few weeks prior to the new year’s day.
As soon as the agency releases the 2021 GS pay tables, you can see how much you’re going to receive in gross pay.
Take note that although the 1 percent pay raise may seem small, added with the locality pay, the take-home pay of a federal worker will be more than just 1 percent. This is because the locality adjustment is made on top of the base pay. Therefore, a 1 percent increase means more in the final paycheck of a federal employee.
The best way to see how much more you’re going to get this year is to calculate your net pay. Your net pay refers to the income after the income and FICA taxes withheld from your gross income. See how you compare from the last year and whether or not this pay raise satisfies you.