This morning, President Donald Trump sent a strong message to Congress and bureaucrats who make a living on the taxpayer’s dime: the money train has stopped. Outrageous salaries are being reigned in.
In an effort to save money next year, President Trump has announced that he is slashing down pay raises for all federal employees to just 1.4 %, down from the 2.1% pay increase they received in January. Had the President not made a change, they would have received a 1.9% increase in pay. That may not sound like much, but in real numbers, the pay cut will save tens of millions of dollars in a single year. In a letter to House Speaker Paul Ryan and Vice President Mike Pence, President Trump called the pay hikes “inappropriate.”
The President has a point. According to CareerTrend.com, being a government employee plays pretty well, offers great job security (even if you are a lousy employee), and the pressures are far less than the private sector.
Here are the salary stats for federal workers from Career Trend.
The average earnings for full-time federal government employees was $74,403 in 2009. This figure does not factor in employee benefits, which are an important part of a federal employee’s compensation.
The average salary for financial managers working for the federal government was $119,671 in 2009, according to the BLS. On average, information technology managers made $91,104. The average human resources manager took home $81,837.
While federal employees won’t be getting a bigger pay raise, one segment of government workers are not included in the cut – the military. In fact, for 2018, military members will see an increase of 2.1% to 2.4% in pay.
It isn’t all bad news for federal employees. In order to stay competitive, President Trump did authorize localized increases (in cities in which the cost of living is higher, like New York) for some workers.
Trump said, ‘locality pay increases averaging 26.16 percent and costing $26 billion would go into effect in January 2018.’
Trump is adjusting that to an average increase of just 0.5 per cent.
‘Locality’ bonuses are supplements to base government workers’ salaries based on where they live, accounting for differences in the cost of living in various parts of the country.
The lowest amount, paid to employees in rural areas and smallish cities, is just over 15 per cent. The highest, in the San Francisco bay area, is more than 38 per cent.
President Trump addressed why it is important to boost pay to our military members.
‘I strongly support our men and women in uniform, who are the greatest fighting force in the world and the guardians of American freedom,’ Trump wrote.
‘As our country continues to recover from serious economic conditions affecting the general welfare, we must work to rebuild our military’s readiness and capabilities.’
However, the union representing government workers is not happy. They claim that the current proposals to the retirement system would “result in a pay cut for federal workers.”
The National Treasury Employees Union, which represents 150,000 federal employees, carped in a statement that Trump’s number for civilians is ‘too low especially in light of the fact that federal law calls for a 1.9 percent across-the-board raise and private sector wages are growing at an even faster rate.’