Status of Retroactive Pay Increase

The President has signed the Consolidated Appropriations Resolution for FY 2003. Among many other provisions, this legislation includes language that mandates a 1 percent retroactive pay increase for most white-collar civilian Federal employees. However, decisions will have to be made regarding how the additional 1 percent pay increase will be allocated. Those decisions will be reflected in an Executive order signed by the President. Once the Executive order has been signed, OPM will issue new salary tables and provide additional guidance to Federal agencies. The additional 1 percent pay increase will be retroactive to the first pay period in January for all affected employees.