After failing to convince Congress to lower the cap to $200,000, the White House now is calling for a ceiling of $400,000. That is the equivalent of the president’s salary, and the plan is to tie contractors’ annual earnings to that. So when the president gets a raise, contractors’ compensation cap will rise accordingly. In the meantime, federal workers are in the third year of a basic pay rate freeze, which is in addition to wage reductions brought on by budget cuts and unpaid furlough days.
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