Congress, Federal Worker | featured news

President Obama told congressional leaders Tuesday that he is extending a two-year pay freeze for federal employees until at least next spring because Congress has not agreed on a budget for the next fiscal year.

Federal pay rates would be frozen for the third straight year in 2013 under several plans that advanced in the House on Wednesday. A spending bill covering general government matters for the coming fiscal year approved by a House Appropriations subcommittee contains no additional money to pay for a raise, effectively rejecting President Obama’s request for a 0.5 percent increase in January.

The proposal would pay for extending a payroll tax holiday and unemployment benefits in part through changes to Medicare and a pay freeze for federal workers.

Federal employees whose regional costs of living entitles them to higher compensation will see no increase in their "locality pay" percentages next year, President Barack Obama informed Congress on Monday.