FAIR Act

S 3688, the FAIR Act, sets pay adjustments for federal employees in 2025. It increases base pay by 4% for most federal workers covered under statutory pay systems and prevailing rate employees (those paid according to local market rates). Additionally, it raises locality pay adjustments by 3.4% for 2025. The bill directly affects all federal employees whose pay is determined under these specific pay systems. These changes are mandated by statute and apply to calendar year 2025.