January 2023 Pay Examples (2024)

FAQs

What are the pay changes for 2023? ›

The average increase for 2023 will fall between 4% and 5%. Just 11% of companies (compared to 18% of companies last year) said they'll increase base pay by more than 5%, according to the report.

Your 2023 Paychecks May Increase

The IRS adjustments will raise the top amounts of all seven federal income tax brackets for 2023, and thereby increase the paychecks of many employees by taxing more of their earnings at lower rates.

President Joe Biden granted civilian federal employees a 4.1% base pay increase that went into effect Jan. 1 this year, plus an average locality pay boost of 0.5%, creating an overall increase of 4.6% for 2023.

* Note: there are 27 pay periods in leave year 2023.

But for 2023, President Joe Biden enacted a 4.6% raise, composed of a 4.1% across-the-board raise and a 0.5% locality pay boost. But within the last several years, Congress has occasionally legislated federal pay raises – in both 2019 and 2020.

2023 U.S. Military Basic Pay Charts. On December 23, 2022, President Biden signed into law the National Defense Authorization Act for Fiscal Year 2023 which contains a 4.6 percent military basic pay raise.

2023 Months With 2 Paychecks

If you received your first paycheck of 2023 on January 6th, you'll receive three paychecks in March and September. March pay dates: March 3, 17 and 31. September pay dates: Sept. 1, 15 and 29.

3 Paycheck Months in 2023 if You're Paid Every Other Friday

If your first paycheck of 2023 is Friday, January 6, your three paycheck months are March and September. If your first paycheck of 2023 is Friday, January 13, your three paycheck months are June and December.

For the employee payroll tax (6.2 percent) and for benefit credit purposes, beginning in 2023, increase the taxable maximum by an additional 2 percent per year until taxable earnings equal 90 percent of covered earnings.

If an employee's current annual salary is $50,000, and he earns a $2,500 raise, then the annual salary will increase to $52,500.

What is the COLA increase for 2023 salary? ›

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023.

In accordance with the 2021-2024 Collective Bargaining Agreement (CBA), career employees represented by the APWU will receive a $0.10 per hour cost-of-living adjustment (COLA), effective March 11, 2023. The increase is the result of a rise in the January Consumer Price Index (CPI-W).

In 2023, if you will be managing a traditional biweekly pay schedule, those who are paid biweekly will receive 26 paychecks. Employees will receive two paychecks in 10 of the 12 months and three in two of the months.

If your first paycheck in 2023 is Friday, Jan. 6, your three-paycheck months will be March and September. If your first paycheck in 2023 is Friday, Jan. 13, your three-paycheck months will be June and December.

Employees receive 26 paychecks per year with a biweekly pay schedule.

New for the 2023 GS Pay Scales

The White House announced their proposal for a 4.1% average increase in Federal wages, along with a 0.5% increase for locality pay, for a 4.6% total average increase. This is the largest pay raise for Federal employees in 20 years.

Even with a largest in decades pay raise, inflation could keep fed salaries trailing behind the private sector. President Biden, in his FY 2024 budget, has proposed a 5.2% pay raise for feds. Sounds pretty good. An extra nickel over every dollar feds earned just last year.

While the 2022 COLA adjustment was 5.9%, government inflation data showed costs grew at a faster pace for much of last year. Now, the 8.7% COLA for 2023 is outpacing current inflation, with a 5.8% increase over the past 12 months for the consumer price index for urban wage earners and clerical workers, or CPI-W.

The largest military pay raise in decades is coming in 2023 for active-duty troops as part of the annual defense authorization bill approved by Congress this month. Under the plan, active-duty troops and drilling Guard and reserve members will receive a 4.6% pay raise, the largest bump in 20 years.

Why is my paycheck less in 2023? ›

Thanks to inflation adjustments to 2023 federal income tax brackets and other provisions announced by the Internal Revenue Service this week, more of your 2023 wages may be subject to lower tax rates than they were this year, and you may be able to deduct higher amounts of income.

Weekly Paychecks

Here are the months with five Fridays for the rest of the decade: 2022: April, July, September, December. 2023: March, June, September, December.

A semimonthly payment schedule is where you pay workers twice a month on specific pay dates—usually on the 1st and the 15th or on the 15th and the last day of the month. That means employees get 24 paychecks every year.

New IRS tax brackets take effect in 2023, meaning your paycheck could be bigger. Higher federal income tax brackets and standard deductions are now in effect, potentially giving Americans a chance to increase their take-home pay in 2023 and shield more of their income from the Internal Revenue Service.

For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850 for 2023, up $900, and for heads of households, the standard deduction will be $20,800 for tax year 2023, up $1,400 from the amount for tax year 2022.

Those rates—ranging from 10% to 37%—will remain the same in 2023. What's changing is the amount of income that gets taxed at each rate. For example, in 2023, an unmarried filer with taxable income of $95,000 will have a top rate of 22%, down from 24% in 2022.

Frequently Asked Questions. $25 an hour is how much a year? If you make $25 an hour, your yearly salary would be $52,000.

If you make $4 per hour, your Yearly salary would be $8,320. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.

What is the COLA increase for January 2023? ›

Social Security benefits and Supplemental Security Income (SSI) payments will increase by 8.7% in 2023. This is the annual cost-of-living adjustment (COLA) required by law. The increase will begin with benefits that Social Security beneficiaries receive in January 2023.

To determine the COLA, the SSA compares the average CPI-W for July, August and September to the figure for that same period the year before. For example, the CPI-W in July 2021 was up 6 percent from July 2020. The year-on-year increases in August and September 2021 were 5.8 percent and 5.9 percent, respectively.

Here's the bottom line: You only receive COLA adjustments if you apply for retirement benefits after age 62. Specifically, you get adjustments for any years between your first eligibility (at age 62) and your filing date. If you claim Social Security right when you turn 62, you may not get any of those adjustments.

Social Security recipients will get an 8.7% raise for 2023, compared with the 5.9% increase that beneficiaries received in 2022. Maximum earnings subject to the Social Security tax also went up, from $147,000 to $160,200.

Though your annual salary remains the same, your take-home income changes with the third paycheck. Those extra funds will help you get out of debt faster and save you money in interest and fees down the road.

In 2023, there are 260 working days, totaling 2,080 working hours.

This page lists all weeks in 2023. There are 52 weeks in 2023. All weeks are starting on Monday and ending on Sunday.

If you are paid on an hourly or daily basis, the annual salary calculation does not apply to you. Your bi-weekly pay is calculated by multiplying your daily or hourly rate times the number of days or hours you are paid.

What are the federal employee changes for 2023? ›

Late last month, President Biden issued an executive order formalizing an average 4.6% pay increase for civilian federal workers in 2023. The raise is split between a 4.1% across-the-board increase in basic pay and a 0.5% boost to locality pay.

As the new year begins, federal employees may be wondering how much extra money they'll see in their paychecks. President Biden made official a 4.6% average pay raise for civilian federal employees. Of that, 4.1% will go toward an across-the-board increase and the remainder will vary depending on where employees live.

For example, the 2023 COLA was 8.7% — the highest percentage increase since 1982. But FERS retirees saw only a 7.7% COLA. Cost-of-living adjustments are designed to keep federal and military retirees and Social Security recipients, on par with inflation.

Number of Pay Periods

Calendar year 2023 will also have 26 pay periods.

The COLA will increase 8.7% for 2023, the Social Security Administration announced on Oct. 13. But not all federal retirees will see that amount added to their checks. Those in the Federal Employee Retirement System (FERS) will receive a 7.7% COLA starting in January.

While the 2022 COLA adjustment was 5.9%, government inflation data showed costs grew at a faster pace for much of last year. Now, the 8.7% COLA for 2023 is outpacing current inflation, with a 5.8% increase over the past 12 months for the consumer price index for urban wage earners and clerical workers, or CPI-W.