General Schedule (GS) Pay Raise 2022

A pay raise is coming to federal employees in 2022. The White House confirmed the federal pay raise rate starting from January 1, 2022. 

The pay raise is formally declared, and those who are working for the federal government will receive a 2.2 percent pay raise. Additionally, federal employees that receive locality pay will see an extra 0.5 percent added to their salary, totaling the raise at 2.7 percent. The now confirmed pay raise is also the same as military pay raise 2022 though the president hasn’t declared it.

While certain organizations like the Retired Federal Employees Association and National Treasury Employees Union are pushing for a higher pay raise – as much as 3.2 percent – it’s unlikely to happen. It seems that the federal pay raise is finalized and won’t see further increases for the 2022 calendar year.

How to calculate increased pay raise?

Calculating your newly increased monthly salary can get quite complicated as taxes are taken out when processing payroll every pay period. To figure out how much you’ll receive starting from the beginning of 2022, you can add 2.7 percent more to your monthly gross pay. The results will equate to your increased salary.

A higher income can correlate to a higher tax bill, though it won’t be significant. The tax bracket amounts are increased every year by the Internal Revenue. Still, if the total increase to your income is higher than the amount added to the highest bracket that applies to you, a higher tax is inevitable. Take a look at the 2021 tax brackets to understand if you’re likely to have a higher tax liability.