Reagan Agrees to 4.1% Pay Hike for U.S. Workers

SANTA BARBARA — President Reagan Wednesday approved a 4.1% pay raise for 2 million federal government employees that will take effect Jan. 1.

His decision, announced by the Western White House here, marked the final step in the federal pay-setting process. Both houses of Congress already had set aside funds for the increase that all but the highest-paid federal officials will receive. Final congressional approval of the raise is expected after the Labor Day recess.

A similar increase of 4.1% is almost certain to be approved for members of the armed forces before Congress adjourns for the year.

Starting at $10,213

Under the new pay schedules, the lowest-paid federal worker at the GS-1 level will receive $10,213 to start.

A secretary at grade GS-5 would be increased to a starting salary of $15,738, rising to $20,463 after 10 steps.

The existing federal pay ceiling of $75,500 will remain, so that the federal government’s top managers and scientists at grades GS-17 and GS-18 will get no raise at all. Cabinet officers, department heads and top White House staff members also are excluded from the President’s action because their pay is over the ceiling.

The President said in a letter to Congress that a pay raise averaging 26.28%, effective Oct. 1, would be required to bring federal pay up to the wage levels for comparable jobs in the private sector.