An executive order issued on Friday will grant federal employees a 1% pay raise in 2014. The increase is the first increase for federal employees since January 2010 when they received a 2% pay increase. The raise is far below the average annual increase expected in the private sector, which major consulting firms have calculated to be about 3.1%. During the pay freeze, federal employees have been able to receive within-grade raises, overtime, bonuses, and promotions. While congress has not taken action to prevent the pay raise, it has not actively bolstered the president?s effort to raise federal workers? pay. However, in the most recent budget agreement, congress has moved to increase the amount that federal workers contribute toward their retirement.
See "Obama grants 1% pay raise to civilian and military employees", Maeve Reston, Los Angeles Times, December 23, 2013