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COLA increase for 2022 will raise pay for federal employees

Employees working for the federal government will soon see a raise in their pay.

The average increase will be around 2.7%, effective Jan. 1, 2022.

President Joe Biden signed an executive order on Dec. 22 that discussed the pay increase.

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An alternative pay letter had been issued on Aug. 27.

Biden decided on a pay raise of 2.2% for everyone working for the federal government, with locality pay increases averaging 0.5%.

This makes the average increase for employees 2.7%, which aligned with Biden’s 2022 Budget.

Related: SSI checks worth up to $1,104 being sent in days with Social Security COLA increase


Some places will see a higher pay increase than others

How much your pay increases will depend on where you reside.

Washington, D.C. area employees can expect their locality pay to rise to 3.02% in 2022.

In San Jose, Oakland, and San Francisco, the rise in locality pay will be 3.14%.

Related: Important dates in 2022 for Social Security payment schedule


Everywhere else that does not see an increase based on locality pay will see a raise of 2.42%.

Congress maintains the power to raise the number for federal pay in 2022, but the likelihood of them overrunning an executive order is slim.



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