President Obama on Monday ordered pay increases for federal workers and members of the military effective in the new year.

Federal workers and uniformed military members will receive a 1 percent cost-of-living increase starting in January while locality pay will remain the same as in 2013.

Obama announced his intention to increase federal worker pay in an August letter to Congress.

As part of the budget negotiations between Rep. Paul Ryan (R-Wis.) and Sen. Patty Murray (D-Wash.), the Obama increase was allowed to go forward. The deal cut retirement benefits for future civilian workers and for military retirees.

This is the first increase civlian federal workers have received since a pay freeze went into effect in January 2011. The increase applies to administration officials from Vice President Joe Biden on down and to the judiciary.

“This modest adjustment reflects the tight budget constraints we now face, while also recognizing the critical role these civilian employees play in our country – doing everything from assuring the safety of our food and airways, to securing our borders, to providing health care to veterans, to searching for cures to diseases,” the White House said in a statement.

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