Bush issues order implementing 3.9 percent pay raise

President Bush on Thursday issued an executive order implementing the 3.9 percent pay hike for federal employees included in the Consolidated Security, Disaster Assistance and Continuing Appropriations Act passed in September.

The 3.9 percent figure is 1 percentage point higher than the administration initially proposed in its February budget, and brings the 2009 civilian pay increase in line with the raise for members of the military.

National Treasury Employees Union President Colleen Kelley said she was pleased with the pay raise, but wished the initial proposal had been higher.

"It is disappointing that in every year of this administration, it has failed to make the connection between fair and competitive pay and the ability of agencies to secure and keep the high-quality employees they need if they are going to meet public expectations of government service," she said.

The executive order was necessary to specify how the overall civilian pay hike will be divided between base and locality pay. Bush allocated 2.9 percent to basic pay, and 1 percent to locality increases.

For General Schedule employees, base pay will range from $17,540 for employees in Grade 1, Step 1, to $127,604 for employees in Grade 15, Step 10. For employees in the Senior Executive Service, pay will range from $117,787 to $177,000 for executives in agencies with certified SES performance appraisal systems, and from $117,787 to $162,900 in agencies without such systems.

Members of the SES paid the current minimum salary of $114,468 will receive guaranteed 2009 raises of 2.9 percent to bring their salaries in line with the new floor of $117,787. Raises for other senior executives will be determined on an individual basis and will vary by agency.

The Office of Personnel Management posted updated locality pay tables to accompany the order.

Employees in the Washington-Baltimore-Northern Virginia area will receive the highest total pay adjustment, at 4.78 percent. Those in the "rest of U.S." category will get an overall boost of 3.52 percent.