Obama Proposes Tiny Pay Increase For Federal Workers

The White House will propose a 0.5 percent pay increase for federal workers as part of its 2013 budget, according to an Office of Management and Budget official.

The modest increase, first reported by the Washington Post, will mark the first uptick in federal compensation since President Obama announced a two-year pay freeze in November 2010, citing the need for federal employees to share in the sacrifice needed to get the deficit under control.

The 0.5 percent increase for civilian federal workers still falls well below the 3.6 percent cost-of-living adjustment for Social Security and other benefits that went into effect at the start of this year to keep pace with inflation.

The proposal would require congressional approval and puts the president at odds with Republicans who have called for extending the pay freeze.

The White House is expected to put forth its 2013 budget proposal next month.