More than 2,100 federal workers in Pennsylvania are set to receive wage increases in late 2025 as a result of a significant change implemented by the Office of Personnel Management (OPM).
The Pennsylvania Capital-Star reported that the new rule aims to achieve wage parity between hourly and salaried federal employees at various facilities across Pennsylvania.
Pennsylvania’s federal workforce is poised for a substantial transformation with the introduction of a new pay rule approved by the OPM.
Beginning October 1, 2025, more than 2,100 hourly federal employees will see an adjustment in their wages as a result of longstanding efforts spearheaded by Sen. John Fetterman and labor unions.
The locality pay system, first introduced in the 1990s, intended to align federal wages with regional economic standards, yet failed to effectively address hourly wage inequalities.
Workers in Pennsylvania, particularly those at facilities such as the Letterkenny and Tobyhanna Army Depots and the United States Penitentiary Canaan, faced a stark pay disparity compared to their salaried counterparts.
The movement to resolve this issue began gathering momentum around 2006, driven by high turnover rates and recruitment challenges at these crucial federal sites. The approved rule reflects the joint advocacy of Sen. Fetterman, former Sen. Bob Casey, and crucial union participation from groups like AFGE and NFFE.
In a notable push towards equity, Sen. Fetterman communicated formally with the Federal Prevailing Rate Advisory Committee in September 2023.
This communication followed a favorable 9-1 vote by the committee back in December 2021, endorsing a new approach for wage determination.
Ensuring ongoing momentum, Fetterman continued his advocacy in 2024, focusing on the broader impacts and benefits for Pennsylvania workers. This determined effort culminated in approval from OPM Director Kiran Ahuja, in alignment with the Biden-Harris administration's objectives for workforce equity.
The changes extend beyond Pennsylvania, affecting approximately 14,500 hourly federal workers across the United States, with those at military installations, including maintenance mechanics, carpenters, and electricians, most prominently impacted.
An OPM letter from October 2024 indicates these workers can anticipate, on average, a 12% increase in their wages. The economic augmentation expected from these increases is substantial, with approximately $23.1 million in additional wages projected for Pennsylvanian workers alone in 2025.
Within Pennsylvania, counties like Franklin and Monroe are predicted to reap significant benefits, given their strong concentration of affected federal workers. In Monroe County specifically, wage increases will range from $0.49 to $7.85 per hour, depending on current pay scales.
These changes signal a critical shift towards wage parity and economic stability for blue-collar federal employees in Pennsylvania and beyond. Acknowledging the broader reform, Fetterman stated that these wage adjustments were fundamentally about "respect" and better treatment for hourly workers.
Ned George, president of AFGE Local 1647, emphasized the importance of this adjustment for achieving "greater equity and fairness" in federal wages.
According to George, the refined criteria under the new policy more accurately align wages with local labor market realities, addressing long-standing disparities within the system.
Fetterman, the ranking member of the Homeland Security and Governmental Affairs Subcommittee on Border Management, expressed strong support for the workers and unions. He praised the collaborative agreement and reiterated his commitment to further extending wage parity to additional facilities like Gettysburg National Military Park.
