A government pay raise is an increase in the salaries of government employees. In the United States, the federal government typically gives its employees a pay raise once per year, based on the recommendations of the president and the approval of Congress. The president’s budget request for 2025 includes a 2.7% pay raise for federal employees.
There are several reasons why a government may give its employees a pay raise. One reason is to keep up with the cost of living. The cost of living is the amount of money it takes to buy the goods and services that people need to live, such as food, housing, and transportation. If the cost of living goes up, then the government may need to give its employees a pay raise so that they can keep up with their expenses.