$15 Minimum wage increase for federal agencies Published March 22, 2022 By Maribel Isbell NAF Human Resources PETERSON SPACE FORCE BASE, Colo. -- On January 21, 2022, federal agencies were instructed to raise the minimum wage to $15 for their workers, per the executive order signed by President Joe Biden, and memo from the Office of Personnel Management. The purpose of the increase is to ensure fair wages for workers across the United States and its territories arising from an economic response to current higher costs of living and prevalence in a more competitive market. Because of the directive, both appropriated fund and non-appropriated fund employees receiving pay compensation below the new minimum will get a raise. This will have a significant positive impact on all APF and NAF employees by providing a variety of benefits to those employees. In addition, this increase will also equip government employers with tools necessary to become competitive in the current job market by adequately compensating their workers, thus promoting the economy and efficiency of the federal sector. According to the executive order, raising the federal minimum wage “enhances worker productivity and generates higher-quality work by boosting worker’s health, morale, and effort; reducing absenteeism and turnover; and lowering supervisory training costs.” This increase is effective on the first pay of the first applicable pay period commencing on or after January 30, 2022. The Department of Defense, which oversees salary rates for wage grade, and craft and trades employees is to carry out the changes to the new rate of pay, therefore where changes can’t be made by January 30, employees will be eligible for retroactive increases. The budgetary effect of the raise will have an impact on our Morale, Welfare, and Recreation programs, particularly higher prices for goods and services stemming from the higher labor costs. Expect relative changes in prices and services provided at our NAF facilities to offset the new increase.