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Reply to "federal employee pay raise 2025"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]DH in the private sector hasn’t had a raise since 2019. With inflation, he’s basically taken a huge pay cut. Add to it that our healthcare premium went up 9k. It’s demoralizing. Others we know have faced devastating layoffs. I’m sure you deserve more but I’d be grateful for any raise in this day and age.[/quote] Sorry to hear that about your DH. I hope the job has other aspects that make it worthwhile. I’m a GS15 and well paid, so love my job… But since I hit the pay cap, my peak real salary was reached in 2019 as well. And I have 10 years to go to retirement with the expectation of decreasing real salary for the rest of my career. At least your DH will get a raise eventually?[/quote] NP. Who knows? The private sector doesn’t reward employees for longevity and ageism is alive and well. Many people a decade away from retirement are not job hopping to get a COLA that for you is standard (FYI: In the private sector COLA and “merit increase” are interchangeable and they are both considered raises, so in the private sector your situation would be the equivalent of getting raises every year since 2019). In the private sector, your ability to get a raise at your current job or find a new job is based on respectively, your performance and the company’s performance and how marketable your skills are and the economy. Many people in the private sector are frustrated with stagnant wage growth, but hiring now is the lowest it has been since we were coming out of the Great Recession, we’ve seen years of silent layoffs through RTO as well as straight up layoffs (raise your hand if you know someone laid off while on maternity leave), and we have all been bracing ourselves for a larger downturn for three years that may actually be on our doorstep. JP Morgan is putting the chance of the US slipping into a recession by the end of 2025 at 45%. I’m not betting on PP’s husband getting a raise. And not getting a COLA and keeping your job is fine in a bad economy. Getting a 2% COLA is also fine. Neither is ideal, but it’s better than not having a job. PP’s husband could get laid off and have to take a lower paying job until he retires or he could get laid off and end up retiring early and working in a service role or “consulting”. He also is unlikely to have a pension with COLA increases and with a 401K, if the market has a decade or two of poor growth or crashes the year before he retires then he’ll likely be working longer than planned and still have less money than he anticipated in retirement. [/quote]
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