The Federal Adjustment of Income Rates Act (FAIR Act) would increase federal employee pay for calendar year 2025. The bill requires a 4 percent raise in basic pay for federal employees covered by the statutory pay systems and prevailing wage workers, along with a 3.4 percent increase in locality pay adjustments that account for regional cost-of-living differences. The legislation affects all federal workers under these pay systems but does not include specific new funding allocations, as pay raises would come from existing federal agency budgets. The changes would take effect in 2025, with prevailing wage employees receiving increases regardless of standard wage survey requirements. This bill was introduced in January 2024 by a group of Democratic senators and was referred to the Senate Committee on Homeland Security and Governmental Affairs.
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