Clinton to OK Pay Raise

THE DAILY FED

Clinton to OK Pay Raise

President Clinton will authorize a 2.8 percent average pay increase for federal workers, The Washington Post reported Friday.

The raise will be divided between a 2.3 percent base pay increase and locality pay raises that will average 0.5 percent.

Under the Federal Employees Pay Comparability Act (FEPCA), which requires the Federal Salary Council to close the gap between federal and nonfederal pay rates, white-collar executive branch employees would have received a 10 percent average pay raise. However, the Clinton administration has rejected the law's formulas as based on flawed methodology.

The government's payroll will run about $105 billion this year. Clinton's pay increase will cost an additional $2.2 billion in fiscal 1998.