HomeNewsFederal Worker Pay Raise Starts Today: Who Gets Increase to $15 an Hour?

Federal Worker Pay Raise Starts Today: Who Gets Increase to $15 an Hour?

by Madison Miller
Photo by: Alfred Gescheidt/Getty Images

Amid the ongoing COVID-19 pandemic, which has caused issues regarding employment, staffing, and food shortages, many people will now receive a pay raise.

It really comes at a pivotal time in which many people are overworked and in desperate need of a larger paycheck. This new pay raise is going to impact about 70,000 Americans and takes effect today, January 30. By increasing pay, the current administration is hoping federal workers will stay competitive in the current workforce.

According to The Sun, there are a total of 2.2 million federal workers at this time. Many of which are getting $15 an hour to do their job. Now, the overall minimum wage will increase for these workers from $10.95 to $15. This will mean that everyone gets to at least start at that $15 mark and have the potential to earn even more.

This hourly increase is needed, seeing as inflation was at 7% in December. This is the highest it has been in 40 years. This means that people need far more than $10 an hour to be able to survive.

Those working with the Department of Defense are the largest group of workers affected. There are about 56,000 defense contractors that will benefit. Others include the Department of Agriculture, Department of Treasury, Department of Veterans Affairs, Department of Justice, and the Department of Education.

Benefits of This Federal Worker Wage Increase

This federal worker pay increase could be a pivotal step forward for the U.S. President Joe Biden signed this executive order in April. It equates to about an annual increase of $3,100. The hope is that this higher minimum will reduce turnover and absenteeism in the workforce.

“Today, we have a lot of people with the so-called Great Resignation, people leaving their job. A lot of it’s driven by wages. There’s no question that this will cut down on some people looking to leave for better wages,” Labor Secretary Marty Walsh said, according to Business Insider.

This increase could also have a spillover effect on all employees. We are still far away from raising the country’s minimum wage. Biden wanted to increase the wage, but it was tossed out by the Senate parliamentarian last year.

As of now, the overall federal minimum wage is at $7.25, which is what it’s been since 2009. While there have been attempts to raise the wage to $15 in the past, they have not yet been successful. In the meantime, states have gone ahead and passed their own legislation to increase the minimum wage. For example, Massasuchets has a minimum wage of $14.25 and Alabama has no state minimum so it remains at the federal wage.

There will be several increases to minimum wage across the U.S. starting in 2022.