January 2023 Pay Adjustment

Late Friday, 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 4.1% with an average of 0.5% adjustment to locality rates. These increases are based upon the alternative pay plan the President submitted to Congress in August, in accordance with the Federal Employees Pay Comparability Act of 1990. Today, when the Omnibus Appropriations bill passed both chambers of Congress without a specific pay increase included, the President’s alternative pay plan became effective with the issuance of the EO.

These increases are effective the first full pay period in January. NATCA’s collective bargaining agreements (CBAs) with the FAA provide for January pay increases and band movement equivalent to the GS increases. Under our CBAs, locality rates are also adjusted consistent with government-wide changes. The EO includes the locality rates for each locality area. There are several new locality areas for 2023 and the boundaries of several areas have been adjusted.

Bargaining unit employees (BUEs) covered by the Slate Book CBA will receive an increase to Basic Pay (not including locality) equivalent to the GS increase (4.1%), effective the first full pay period in January regardless of position in or above the band (unless the employee is subject to Pay Retention in accordance with Article 108, Section 11). The Slate Book pay bands also increase by 4.1%, equivalent to the GS increase. Locality rates 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 2023, the statutory maximum will be $212,100.

BUEs covered by the Purple Book Consolidated CBA will receive an increase to Basic Pay (not including locality) equivalent to the GS increase (4.1%), 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 4.1%, equivalent to the GS increase. Locality rates will be applied after Basic Pay has been adjusted.

BUEs covered by the Light Blue Book Multi-Unit CBA will receive an increase to Basic Pay (not including locality) equivalent to the GS increase (4.1%), 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 4.1%, equivalent to the GS increase. Locality rates will be applied after Basic Pay has been adjusted.

In solidarity,

The National Executive Board