FOR IMMEDIATE RELEASE:
Contact: Matt Dorsey
(202) 550-6987
October 2, 2024
Washington, D.C. – Today, the National Federation of Federal Employees (NFFE) calls on Congress to raise federal employee wages via the Federal Adjustment of Income Rates (FAIR) Act in response to Federal Employee Health Benefits Program (FEHB) premiums rising by an average of 17.5% in 2025. Civil servants and retirees will pay an average of 13.5% more for healthcare, 3% for dental, and 1% for vision coverage.
“Even without taking inflation and cost of living increases into consideration, the new FEHB rates mean that most civil servants will be receiving a pay cut,” said NFFE National President Randy Erwin. “This is absolutely unacceptable, especially considering federal employee wages lag 27.5% behind their counterparts in the private sector. The proposed 2% pay increase for the civil service in 2025 will be completely swallowed up by healthcare costs for mid-level and below General Schedule and Wage Grade employees.”
On average, self-covered federal employees will pay $422 more for healthcare next year, while families will pay nearly an additional $700. Self-plus-one employees will pay an extra $877 throughout 2025. To offset these costs, NFFE is calling on the White House to increase it’s proposed 2% pay increase for FY25, in addition to urging Congress to pass the FAIR Act, which will adjust income rates by 7.4%, reflecting the Employee Cost Index (minus .5%) plus a 3.4% increase in locality pay.
“The world isn’t magically cheaper for federal employees and their families,” continued Erwin. “We cannot expect them to make ends meet if their pay is decreased year over year. As the country’s largest employer, the federal government increasing wages for the civil service amounts to a stimulus package, as their pay goes back into the economy via spending in their communities. A pay cut does the opposite, harming those communities, all across the country. If Congress cannot pass the FAIR Act, the White House must adjust its current plan and give federal employees a larger increase to their wages.”