How much more are the employees of the federal government compensated than their peers in the private sector?
The Congressional Budget Office released a study in 2012 that took factors like age, skills, experience, education, employer size and occupation into account, to do as close to an apples-to-apples comparison as possible. The chart below reveals what they found by level of education:
In a nutshell, the federal government way overpays people with the lowest levels of education, while also showering them with outsize benefits.
The wage picture equalizes somewhat for people who have college degrees, but once again, the federal government’s benefits package sharply tilts the total compensation table to the federal government employees’ gain.
Once we get to people with higher levels of education, we see wages in the private sector start to overtake those available in the federal government, but once again, those extremely generous benefits more than make up the difference with the private sector.
It’s not until we get to the topmost education levels, such those required by medical doctors and surgeons, that we finally see wages earned in the private sector clearly overtake those in the federal government. Meanwhile, the level of benefits finally equalizes.
With more than two million civilian employees, what the CBO’s analysis suggests is that there is a lot of opportunity to reduce the cost of operating the U.S. government by bringing the pay and benefits it provides to federal government workers fully in line with those available in the private sector.
And for those federal government workers who say they could make a lot more money if they worked in the private sector while they demand raises and even more generous benefits than almost any person employed in the private sector earns today, we think that’s because what they might do in the private sector is probably a lot more valuable to society than what they are doing as federal government employees. If they think they can really be any more generously compensated in the private sector, they ought to go out and prove it outside of the Washington D.C. metropolitan area.
[...] View full post on MyGovCost | Government Cost Calculator [...]
Jerry,
Your diatribe is based on hatred.
Most federal employees come to government service after establishing solid careers.
You can’t retire at 55 or 60 without time in... a fact you ‘conveniently overlook.
If “America is bankrupt” as you state, let’s look at the cost of Bush’s “Wars of Choice” or his tax cuts for the RICH.....
Gee, you didn’t mention that now did you, boy???
I’m amazed at the opinion expressed in this article as follows:
“In a nutshell, the federal government way overpays people with the lowest levels of education, while also showering them with outsize benefits.”
In the last thirty three years, the private sector, supported by Republican administrations, has busted unions, cut wages and benefits, especially defined benefit retirements. The private sector has used bankruptcy as a financial strategy to escape all agreements with labor. Therefore, the article could also have read:
“In a nutshell, the private sector greatly underpays people with the lowest levels of education, while systematically cutting their benefits so that the government must be called upon to support working families who make too little to minimally provide for their own basic needs.”
Divide and Conquer.
Public Sector: Federal Employee works 30+ years to eek out a retirement. Pension yes for some, but stunted with no COLA and rising cost of health benefits. Congress, “work” 4 years and gets a retirement pension with all the frills (free medical for life).
Private Sector: Employee invest his sweat and blood working hard for “the company”. President & Board of Director’s pays back this loyalty by eliminating jobs and slashing benefits to increase profit to shareholders and/or pad their bonus.
![]() |
![]() |
![]() |
![]() |
First of all,most of these Federal “employees” couldn’t make an honest living in the American Free Enterprise System if their lives depended on it. Many retire at 55 or 60 and spend the rest of their lives collecting a bloated pension(which is adjusted for inflation on a regular basis) plus Health Insurance for the “employee” and their spouse till death plus the added bonus of double dipping into Social Security. With that said, the sad part of the story is that all these Federal “employees” are net tax consumers. In other words, the Government doesn’t create any wealth. It (the government) can only tax and or borrow. Thus,all government “employee” compensations are derived from the productive tax base of the American Free Enterprise System. Statistically speaking the average productive American,in the private sector,when you include all taxes paid,directly and indirectly, to all government levels (Federal,State,Local) has to work almost 8 out of 12 months of the year to support government. This is why we often have both husband and wife working full time just to make ends meet. Finally,we end up with a bankrupt America,deeply in unsustainable debt, with our former public servants now our masters and thus leaving the people working in the productive Economic Class as debt and tax serfs. So much for the “Home of the Brave and the Land of the Free.”