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Obama proposes two-year federal worker pay freeze

President Barack Obama proposed freezing the pay of about two million federal civilian employees this fiscal year and next as part of an effort to bring the budget deficit under control.

President Barack Obama proposed freezing the pay of about two million federal civilian employees this fiscal year and next as part of an effort to bring the budget deficit under control.

The freeze would hit all civilian workers in the government, including those at the Department of Defense. Military personnel wouldn’t be affected. The move would save about $2 billion for fiscal 2011, which ends Sept. 30, and more than $60 billion over the next decade, according to the White House.

Getting the deficit under control will require broad sacrifice and “that sacrifice must be shared by the employees of the federal government,” Obama said yesterday in Washington.

The administration posted a budget deficit of $1.3 trillion, second highest ever, in fiscal 2010. The chairmen of Obama’s commission on deficit reduction have proposed a three-year freeze on federal salaries and a 10 percent cut in the government workforce. The panel is scheduled to deliver its final report Dec. 1.

The pay freeze proposal would require congressional approval.

 
 
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