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In December 2007, the President's Pay Agent reported that an average locality pay adjustment of 36.89% would be required to reach the target set by FEPCA (to close the computed pay gap between federal and non-federal pay to a disparity of 5%). By comparison, in calendar year 2007, the average locality pay adjustment actually authorized was 16.88%.
H.R. 273 does NOT prevent federal employees from receiving bonuses, merit based pay increases, promotions, or even tenure based pay increases – commonly referred to as “step” increases. It simply prevents the President from implementing a planned across the board increase for all federal employees [ 27 ]
U.S. Capital Building in Washington, D.C. Pay-for-Performance is a method of employee motivation meant to improve performance in the United States federal government by offering incentives such as salary increases, bonuses, and benefits.
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Trade unions generally seek to reduce wage dispersion, the differences in wages between workers doing the same job. [3] Not all unions are successful, however. A 2008 study of collective bargaining agreements in the United States found that 25% of the union contracts surveyed included a two-tier wage system. [3]
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