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January Pay Increase for Federal Employees

Brothers and Sisters:

On Dec. 26, the President issued an Executive Order (EO) adjusting the pay rates and pay bands for employees covered by the General Schedule (GS) and other statutory pay systems. The general increase is 2.6% and the average locality increase is 0.5%. These increases are based upon implementation of the appropriations act signed into law on Dec. 20. These increases are effective the first full pay period in January. The amount applied to locality will vary by locality area. NATCA’s collective bargaining agreements (CBAs) provide for January pay increases and band movement equivalent to the GS increases. Locality rates are also adjusted consistent with government-wide changes. The full EO, including locality rates is attached. Also attached is the table showing new locality rates and total adjustments for each locality area.

Bargaining unit employees covered by the Slate Book CBA will receive an increase to Basic Pay (not including locality) equivalent to the GS increase (2.6%), effective the first full pay period in January regardless of position in or above the band. The Slate Book pay bands also increase by 2.6%, equivalent to the GS increase. Locality increases will be applied after Basic Pay has been adjusted. Employees who exceed the statutory maximum will have their Basic Pay increased, however their locality pay will be reduced so that their Base Pay does not exceed maximum statutory amount. For 2020, the statutory maximum will be $197,300.

Bargaining unit employees covered by the Purple Book Consolidated CBA will receive an increase to Basic Pay (not including locality) equivalent to the GS increase (2.6%), effective the first full pay period in January, up to the band maximum. If the annual adjustment will cause the employee’s Basic Pay to exceed the band maximum or the employee’s Basic Pay is already equal to or exceeds the band maximum, the employee will receive a pay increase up to the band maximum and the remainder as a lump sum payment. Purple Book pay bands also increase by 2.6%, equivalent to the GS increase. Locality increases will be applied after Basic Pay has been adjusted.

Bargaining unit employees covered by the Light Blue Book Multi-Unit CBA will receive an increase to Basic Pay (not including locality) equivalent to the GS increase (2.6%), effective the first full pay period in January, up to the band maximum. If the annual adjustment will cause the employee’s Basic Pay to exceed the band maximum or the employee’s Basic Pay is already equal to or exceeds the band maximum, the employee will receive a pay increase up to the band maximum and the remainder as a lump sum payment. Light Blue Book pay bands also increase by 2.6%, equivalent to the GS increase. Locality increases will be applied after Basic Pay has been adjusted.

In Solidarity,

Paul Rinaldi, NATCA President
Trish Gilbert, NATCA Executive Vice President

Attachment 1
Executive Order: Adjustments of Certain Rate of Pay

Attachment 2
Locality-Based Comparability Payments and Increases in 2020