Government workers generally fare better than private sector workers and have done so since the s. Over the last 25 years, the percentage difference between average federal pay and private sector pay has doubled. During the administration of George W. Bush, federal pay increased considerably. A partial freeze on wages for government workers held salaries back from how much money does the average government employee makebut the imbalance was restored in as it rose by 2. The Cato Institute recently released a report summarizing the wages of federal workers and how well they are doing compared to their private sector counterparts. Rooting out and correcting mismanagement and overpaid employees within the federal ranks is extremely difficult thanks to various regulations and protections. According to a USA Today study, job security is so strong that workers at most federal agencies have a greater chance of dying on the job than they yhe of getting fired. The burden of overpaid federal employees is non-trivial. That value is spread over 2. Those who attempt to curb the rise in benefits run afoul of the powerful unions and lobbyists that benefit from higher wages for their members. The Cato report notes the opinion of the head of averagr federal goverbment who called opponents «fools» at a conference in averaye threatened to «open up the biggest can of whoop ass» on. It is at least fair to ask if these salaries are deserved — after all, much of the federal workforce does require special skills and training such as legal backgrounds. However, the ratio of special skills to more mundane federal maoe has not changed in recent years.
Level I Officials
The federal government employs 2. Since the s, federal workers have enjoyed faster compensation growth than private-sector workers. In federal workers earned 80 percent more, on average, than private-sector workers. Spurred by large budget deficits, policymakers imposed a partial freeze on federal wages from to , which saved billions of dollars. However, further savings are needed. Policymakers should turn their attention to the overly generous benefit packages received by federal workers. They should also cut the size of the federal workforce by terminating low-value programs and reducing layers of management. Figure 1 shows that average federal wages grew rapidly for a decade, then slowed during the partial pay freeze, and then have risen again in recent years. When benefits such as health care and pensions are included, the federal compensation advantage over private workers is even larger, according to the BEA data. The BEA data can be broken down by industry. Among 21 major sectors that span the U. Rising federal compensation stems from legislated increases in general pay, increases in locality pay, expansions in benefits, and growth in the number of high-paid jobs as bureaucracies become more top-heavy. Compensation growth is also fueled by routine adjustments that move federal workers into higher salary brackets regardless of performance, and by federal jobs that are redefined upward into higher pay ranges. Politics also plays an important role. Federal workers are a powerful special-interest group, and they are effective lobbyists. Federal unions actively oppose legislators who support restraining worker pay. Some people argue that the government has a unique high-end workforce that deserves to be paid handsomely. But the federal workforce has always had a heavy contingent of skilled professionals, such as lawyers. So that factor does not seem to explain why federal compensation has grown faster than private-sector compensation in recent decades. In average federal compensation was 39 percent higher than average private compensation. In the past, there was a view that it was a privilege for citizens to serve the public in a federal agency, and that federal pay should be fairly modest. Unfortunately, that sort of thinking has gone out the window as the federal compensation advantage has continued to increase.
How much does U.S. Government in the United States pay?
Republican leaders and conservative think tanks claim federal workers are overpaid. They say the average federal worker is paid twice as much as those in the private sector. The federal Office of Personnel Management and unions that represent federal workers say on average they are paid 24 percent less than those in the private sector. The analysis is based on data from the Bureau of Economic Analysis and crudely done by dividing total compensation salary and benefits by the number of current federal civilian employees. Comparing such averages is quite misleading, for two reasons:. Officially, the Office of Personnel Management says federal civilian workers on average are paid 24 percent less than private workers — a figure based on surveys conducted by the Bureau of Labor Statistics and often cited by unions and their Democratic allies. But this is misleading, too. The last time the federal government undertook an in-depth analysis to compare federal and private-sector pay was in One often-mentioned GOP budget-cutting proposal targets federal employees. In stating their case, Paul and Boehner compared federal workers with private-sector workers and concluded that federal workers are overpaid. One of the most frequently cited claims is that federal workers make twice as much as private-sector workers. Paul : I would freeze federal hiring. I would maybe reduce federal employees by 10 percent. Boehner, Nov. These statements are supported by an Aug. Both based their reports on data from the Bureau of Economic Analysis. But they exaggerate the pay gap between private and federal workers. These numbers were arrived at by dividing full-time equivalent employees for private industries line 3 and federal government line 89, civilian by their total compensation or their total wage and salary. The statistics on federal employees exclude the military as well as postal workers. But any compensation comparison between the average federal civilian employee and average private-sector employee oversimplifies the debate, glossing over the important differences in occupation, skill level, age, and education that determine salaries.
Federal Government Benefits
A reproductive gynecologist, a brand director and a head of a service center — what can possibly unite these professions? While it sounds like the start of a funny story, these jobs were actually named by the Superjob job hunting website as the highest-paying vacancies in Moscow in May Do you think such salaries are common in Russia? Not at all. Why is that?
The North and Far East is where oil, gas and raw material extractive industries are based and their huge revenues allow the companies to pay high salaries which compensate for the high local prices, harsh climate conditions and remote location from other regions. High salaries in Moscow and to a lesser extent in St. Petersburg can be explained by the fact that these cities host the headquarters of almost every major Russian business and offices of international corporations.
The Russian capital is also where state authorities, financial institutions and IT and internet giants are located so this leads to a situation when almost all top managers and highest earning professionals work in St.
Petersburg or Moscow. At the same time, average numbers are also only average. Of course, this fact is not something that Russians love to recall because this has made their trips abroad twice as costly. Even with a seemingly decent average salary, in So how much money do Russians themselves consider enough? Russian financial requirements have basically returned to pre-crisis levels, says Andrei Milekhin, president of Romir Research Holding. But one thing is clear — Russians have changed and so have their consumption habits.
Would you? If using any of Russia Beyond’s content, partly or in full, always provide an active hyperlink to the original material. This website uses cookies. Click here to find out. How much money does an average Russian make? June 03 If you think that Moscow is where Russians earn the most, think. Alexander Kislov.
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