Obama to Propose 1 Percent Federal Worker Pay Hike

The White House says President Barack Obama will propose a 1 percent pay raise next year for federal workers.

The increase would mark the second year in a row that civilian federal workers would get a 1 percent hike after three straight years of pay freezes. Pay went up in January.

The Pentagon said military pay would go up by 1 percent as well. Service members did not experience the pay freezes that civilian workers did.

Obama actually sets the pay increase by presidential order but his budget, which comes out on March 4, sets aside the money for it.

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