Federal workers' pay gains are the slowest in 10 years

ByABC News
December 26, 2011, 8:10 PM

— -- The paychecks of federal workers grew at the slowest pace in a decade this year, held down by a partial pay freeze. But federal employees still did slightly better than workers in the private sector or at state and local governments, a USA TODAY analysis found.

Federal pay rose an average of 1.3% for the budget year that ended Sept. 30, according to newly released federal data. By comparison, the wages of private workers rose 1.2% during the period, the same rate as state and local government pay growth, the Bureau of Labor Statistics reports.

None of the wage gains kept pace with inflation.

The federal pay numbers are the first full budget-year results since President Obama canceled automatic cost-of-living pay hikes in 2011 and 2012. Federal employees still get raises for longevity, merit and promotions. But 2.1 million civil servants did not get a scheduled 0.9% inflation adjustment this year, saving the government about $2 billion a year, or a 1.1% across-the-board pay hike scheduled for Jan. 1.

House Republicans want to continue the partial pay freeze through 2013. "We very much oppose extending the freeze. Federal employees have already made a sacrifice," says Julie Tagen, legislative director for the National Active and Retired Federal Employees Association.

Federal workers made an average $75,296 in pay last year, plus $28,323 in medical, pension and other benefits, the USA TODAY analysis found. That's about 60% more than the average private wage, a difference explained largely by higher education levels and more professional jobs in the federal workforce.

Federal compensation has soared in the past decade, especially in the past five years, at a time when private wages and employment have sputtered.

The federal government in recent years has hired several hundred thousand new employees, including many well-paid lawyers and doctors.

The Department of Veterans Affairs started paying physicians market rates in 2006. VA doctor pay doubled to an average $200,604 in 2011. The raises reduced spending on bonuses and outside contracts, helping the VA add more than 5,000 doctors, says the VA's Brian McVeigh.