At Work

President Approves 2016 Pay Increases

I won’t crticize this action, because I don’t have all the facts and given the relatively high total compensation of government workers, it may well be prudent. 

But isn’t it interesting that government holds pay increases to 1% for three years in a row; below even low inflation rates while politicians claim great progress has been made in economic recovery, but decry the state of the middle class because of stagnant wages. All the while since 2008 federal revenue has increased steadily. 

I guess it’s ok for government to make “tough choices” for its workers but not businesses still dealing with an uncertain environment, especially when it comes to things controlled by government. Record profits you say? Better look again and in the months ahead.  Just as business should not be focused on the next quarters profits, it is equally imprudent to make long-term and compounding pay decisions without due consideration of the consequences … just like Mr Obama is doing. 😎

In January 2014 and again in January 2015, [and also January 2016] increases for civilian Federal employees were limited to a 1.0 percent overall pay increase, an amount lower than the private sector pay increases and statutory formula for adjustments to the base General Schedule for 2014 and 2015. However, as the country’s economic recovery continues, we must maintain efforts to keep our Nation on a sustainable fiscal course. This is an effort that continues to require tough choices.

Source: President Approves 2016 Locality Pay Increases


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