Special Message to the Congress Proposing Salary Increases in the Executive Schedule

To the Congress of the United States:

The recent rejection by the Congress of higher salaries for the Executive, Legislative and Judicial branches has created a problem within the Government that needs to be quickly remedied.

Under the law, career officials in the General Schedule--"GS employees" as they are called--cannot be paid a higher salary than anyone on the lowest rung, Level V, of the Executive Schedule.

For the past five years, the salaries of those in the Executive Schedule have been frozen, and with the recent action by the Congress, will continue to be frozen until 1977.

During the same period, in actions approved by the Congress, the salaries of those in the General Schedule have been gradually increasing.

The result now is that GS employees in the top three levels of the General Schedule-CS 16s, 17s, and 18s--are almost all paid the same salary, $36,000, which is the same salary as a Level V employee on the Executive Schedule.

For the 10,000 careerists in the top levels of the General Schedule, this salary bunching or "pay compression" denies them fair increases in compensation, robs them of the incentive to seek promotions, and adversely affects their future annuities. Already it is creating greater difficulties in recruiting and retaining top-flight career personnel, and it could lead to a serious decline in the quality of the managerial work force.

To correct this problem, I am transmitting to the Congress today legislation which would raise the salaries of those in the lowest three levels of the Executive Schedule and thereby permit a significant increase in the salaries of those in the highest grades of the General Schedule.

This proposal would raise the salaries of Level V, IV and III employees to $41,000, $41,500 and $45,000 respectively. No increase would be provided for any Federal official now making more than $42,000.

By virtue of this reform, there would be a significant reduction in the salary compression for top-level GS employees whose salaries could continue to increase in a way that they deserve.

For the sake of the career employees within the Government and the quality of management which we need within the Executive Branch, I urge the Congress to give this proposal its swift approval.

RICHARD NIXON

The White House,

May 7, 1974.