Official: Obama to announce federal pay freeze
November 29th, 2010
10:20 AM ET

Official: Obama to announce federal pay freeze

President Obama will announce a two-year freeze in the wages of federal employees Monday, with the intention of saving $60 billion over the next 10 years.

Obama was scheduled to announce the proposal later Monday.

According to an administration statement, the two-year pay freeze will save $2 billion for the remainder of fiscal year 2011, $28 billion over the next five years, and more than $60 billion over the next decade.

The freeze does not apply to military personnel, but will apply to all civilian federal employees, including those in various alternative pay plans and those working at the Department of Defense.

"This freeze is not to punish federal workers or to disrespect the work that they do," the White House said in a statement. "It is the first of many actions we will take in the upcoming budget to put our nation on sound fiscal footing - which will ask for some sacrifice from us all."

Republicans have argued in favor of a freeze in recent weeks, and the co-chairmen of Obama's bipartisan deficit commission made a similar recommendation earlier this month.

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Filed under: Barack Obama • Economy • Finance • Jobs
soundoff (235 Responses)
  1. stephanie

    First of all most government workers do not make a lot! Public servants get crap pay to begin with and private sector usually makes way more!! why not cut the pay of members of congress or even the president..... or perhaps that bailout that went to the banks....lets just ask goldman sachs for that back....considering we as citizens are the ones in financial ruin because of there bad bets against us in the housing crisis....I went to college for 4 years with public administrationa s my major and now good luck to me finding a job with any kind of pay because they are freezing it....who is going to pay back my student loans or bail me out??? Myself thats who,

    November 30, 2010 at 12:30 pm | Report abuse |
  2. Bee Jay

    Frist of all not every onel can't Telework if one should be able then all should, half the time you can't fine the people. When i came in to the goverment i, could tell something was wrong too many CHIEF , some people in the goverment do work and some work hard. For the Freeze we have to start some were so stop crying about and let get it OVER.

    November 30, 2010 at 1:16 pm | Report abuse |
  3. Beth

    getting it right: The office of personnel management which controls pay and personnel actions for federal employees published a report in october: private sector workers earn 24% more than federal employees. Many federal employees are deployed along side of their military counter parts in Iraq, Pakistan, and Afghanistan. Instead of whining about how great they have it, why not check out USA jobs, take a civil service test, check the bulletin boards at your local government offices, raise your hand and dedicate your life to being a civil servant. there are a lot of great ones out there who work very hard to maintain the vigil for the freedom you enjoy.

    November 30, 2010 at 7:49 pm | Report abuse |
  4. Gail

    Is this really a big deal? I read here, http://www.savingtoinvest.com/2010/11/no-federal-pay-raise-in-2011-or-2012-as-obama-freezes-federal-employee-pay-increases.html , that the previous proposal was 1.4% – so will this amount of a raise really make a difference. Most people can easily trim that amount from their discretionary spending.

    November 30, 2010 at 8:33 pm | Report abuse |
  5. Marcel

    It kills me that so many people are not educated on how things work. Contrary to popular belief, most Federal Worker’s earn between $21 and $85 k a year. This includes Law enforcement such as Border Patrol, CBP, and Secret Service who put their lives on the line on a daily basis. Most of who is Military Reservist or Veterans.
    Like someone posted earlier, Government worker’s who earn more that 100k is far and few between, even after 15 years of service. Pay scales are public information, please look it up.
    This pay freeze will affect a lot of “working class” Families and this is just a political ploy to fool the average citizen once again into believing things are being done when in fact nothing is being done.

    December 1, 2010 at 10:47 am | Report abuse |
  6. fedupfed

    $ 55,000.00 per year. my raise i might have seen what $10 a week after my health insurance went up by 1/3, to watch up to 320 inmates at one time, yeah, i'm really overpaid. i say a prayer every morning that i get to come home every night. counting the hrs til i can get out. hope your prisons burn down and inmates run wild,,, thats what the govt did to my job.

    December 1, 2010 at 10:19 pm | Report abuse |
  7. Kathy

    Federal pay freeze? Get rid of unemployment benefits? If the government is trying to cut corners to save the economy, why the hell is it saving banks and auto dealerships by loaning them money? The government doesn't care about us as people who need to support our families! They care about saving businesses' necks! Off with their heads!

    December 2, 2010 at 8:33 am | Report abuse |
  8. Kathy

    Why don't House of Rep and Congress and the President take a 25% cut in pay? That would put a lot of money back in the Treasury. Most of them don't really earn their paychecks. They just have all those free perks. The First Lady spends money like there is no recession. They need to tighten their belts just like the rest of us have to. If they don't, they will get voted out at the next election. Guaranteed!

    December 2, 2010 at 8:41 am | Report abuse |
  9. Florida

    I'm glad that there's some understanding from the public that many Federal employees are in fact not overpaid, and, speaking for myself, I struggle with a single income and with that a very tight and modest budget, so nothing fancy or overpaid about my life, that's for certain, though there are some in Government who abuse their position and that gives everyone else a bad reputation...

    December 2, 2010 at 1:50 pm | Report abuse |
  10. Kansas

    I go to college, wrack up student loan debt, make excellent grades, get off of welfare and eventually get a government job where I work my tail off everyday and go home stone cold exhausted, getting kudos from all my bosses about my excellent performance and I am now being told by people who have no clue about what my pay is, because it's nowhere near 100 K folks, that I'm an "overpaid and lazy federal worker who sits around all day playing solitaire". Sure, no problem. What a load of absolute )(*)(*&(&_)*+(. Thanks for absolutely nothing President Obama, who I voted for by the way. You are making a grandiose, meaningless gesture (that 1.4% was going to make a huge difference in my pay, not!) on the backs of hardworking federal employees, and shmoozing to the Republican party because you want a second term and you are willing, and able, to do it on the backs of some of the hardest working people I've ever met. Not referring even to myself there but to all my fellow co-workers. So, who will I vote for next election? Someone who won't sell out.

    December 18, 2010 at 4:33 pm | Report abuse |
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