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Federal Pay Frozen in 2012
After receiving a 3.5% pay increase in 2008, a 3.9% raise in 2009 and a 2% increase in 2010, federal employees have seen their pay frozen for two years. Federal employees can still receive bonuses and get a pay increase if they earn a promotion. The House has recently voted to continue the pay freeze through 2013, saying it would save taxpayers $26 billion. The proposed budget put forth by President Obama last week calls for a 0.5% pay increase and 1.2% increase in retirement contributions.