Wednesday, December 1, 2010

Obama's Loopholes for Federal Employees on the Supposed Wage Freeze

With much fanfare, President Obama announced that he was proposing a freeze on wages of Federal employees, but it appears to be a sacm.

Most federal workers would still get pay raises the next two years despite the "freeze". There are more exemptions to the pay "freeze" than George Soros has tax exemptions. Longevity increases (called steps), promotions in grade, bonuses, overtime and other cash payments will all continue.

USA Today reports:
Step raises are largely automatic, based on longevity, but merit can hasten a step pay raise or even move a worker up multiple steps.

Full-time federal employees earned an average of $81,258 in pay last year and $41,791 in benefits, the Bureau of Economic Analysis (BEA) reports.

By comparison, the private worker earned $50,462 in pay and $10,589 in benefits, meaning that federal workers earn about half more in pay but four times as much in benefits, the BEA says.

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