President Barack Obama will implement an alternative pay plan that establishes a 1-percent across-the-board pay increase for federal civilian employees beginning January 2016.
In a memo sent Friday to the Senate and House leadership, Obama cited sections 5303(b) and 5304a of the U.S. Code Title 5 to exercise authority on both across-the-board and locality pay adjustments.
He noted that he will issue a decision on locality payments by the end of November.
“The alternative plan for locality payments will be limited so that the total combined cost of the 1.0 percent across-the-board base pay increase and the varying locality pay increases will be 1.3 percent of basic payroll, consistent with the assumption in my 2016 Budget,” the president said.
