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Federal Managers Association

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  • Bill to alleviate federal pay compression introduced by House Dems - August 9, 2023
  • The Pay Compression Relief Act would effectively allow General Schedule employees to receive annual increases to both basic and locality pay, even if they have already hit the federal pay cap. FMA has been working with Del. Norton and will continue to push to correct this injustice.

    Erich Wagner, Government Executive

    A group of House Democrats led by Del. Eleanor Holmes Norton, D-D.C., on Tuesday introduced legislation aimed at alleviating the impact of federal pay compression on some senior federal employees in cities with high costs of living.

    Pay compression refers to when a federal worker, typically in the Senior Executive Service or the upper echelons of the General Schedule, is paid at or near the federal pay cap, meaning that when the president or Congress implements the annual federal pay raise each January, they miss out on some or all of the portion of the pay raise that goes toward increases in locality pay. The phenomenon is particularly prevalent in cities with high costs of living, like Washington, D.C., New York and San Francisco.

    To read the full article, click here.


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