Federal

FAIR Act

Source: Congress.gov · 393 words in original text

What This Bill Does

This bill increases pay rates for federal employees in calendar year 2024. The bill adjusts basic pay for employees in the statutory pay systems and prevailing rate employees, and also adjusts locality pay (additional pay based on where an employee works).

Who It Affects

Federal employees covered under statutory pay systems and prevailing rate employees (workers paid according to local wage surveys). The bill also affects federal agencies that employ these workers.

Key Provisions

• Basic pay for federal employees under statutory pay systems increases by 4.7 percent in calendar year 2024 (Sec. 2(a)) • Basic pay for prevailing rate employees increases by 4.7 percent in fiscal year 2024 (Sec. 2(b)) • Locality pay adjustments increase by 4.0 percent in calendar year 2024 (Sec. 3)

What Changes

Federal employees covered by statutory pay systems and prevailing rate employees will receive a 4.7 percent increase to their basic pay. Locality pay, which provides additional compensation based on geographic location, will increase by 4.0 percent.

Important Definitions

Statutory pay systems: The federal government's standard pay structure for most federal employees. Prevailing rate employees: Workers paid according to local wage surveys in their geographic area. Locality pay: Additional pay adjustment based on where an employee works.

Effective Date

Not specified in bill text

II 118TH CONGRESS 1ST SESSION S. 124 To increase the rates of pay under the statutory pay systems and for prevailing rate employees by 8.7 percent, and for other purposes. IN THE SENATE OF THE UNITED STATES JANUARY 26, 2023 Mr. SCHATZ (for himself, Ms. BALDWIN, Mr. PADILLA, Ms. WARREN, Mr. FETTERMAN, Mr. SANDERS, Mr. KAINE, Mr. BLUMENTHAL, Mr. VAN HOLLEN, Mr. CARDIN, Mr. CASEY, Mr. WHITEHOUSE, Mr. BROWN, Mr. LUJA´N, Mr. HEINRICH, and Mr. WARNER) introduced the following bill; which was read twice and referred to the Committee on Homeland Secu- rity and Governmental Affairs A BILL To increase the rates of pay under the statutory pay systems and for prevailing rate employees by 8.7 percent, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Federal Adjustment 4 of Income Rates Act’’ or the ‘‘FAIR Act’’. 5 SEC. 2. ADJUSTMENT TO RATES OF PAY. 6 (a) STATUTORY PAY SYSTEMS.—For calendar year 7 2024, the percentage adjustment under section 5303 of 8 VerDate Sep 11 2014 22:17 Feb 03, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S124.IS S124 kjohnson on DSK79L0C42PROD with BILLS 2 •S 124 IS title 5, United States Code, in the rates of basic pay under 1 the statutory pay systems (as defined in section 5302 of 2 title 5, United States Code) shall be 4.7 percent. 3 (b) PREVAILING RATE EMPLOYEES.—Notwith- 4 standing the wage survey requirements under section 5 5343(b) of title 5, United States Code, for fiscal year 6 2024, the rates of basic pay (as in effect on the last day 7 of fiscal year 2023 under section 5343(a) of such title) 8 for prevailing rate employees in each wage area and the 9 rates of basic pay under sections 5348 and 5349 of such 10 title shall be increased by 4.7 percent. 11 SEC. 3. ADJUSTMENT TO LOCALITY PAY. 12 For calendar year 2024, the percentage adjustment 13 under section 5304 of title 5, United States Code, shall 14 be an increase of 4.0 percent. 15 Æ VerDate Sep 11 2014 22:17 Feb 03, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S124.IS S124 kjohnson on DSK79L0C42PROD with BILLS

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