President Barack Obama has announced plans for pay increases of one percent for both civilian federal employees and military personnel.

"Civilian Federal employees have already made significant sacrifices as a result of a three-year pay freeze," Obama wrote in letters to Congress released Aug. 30. The one percent increase for feds applies to those working under the General Schedule (GS) and for other pay systems not specified in the letter. Locality pay percentages will remain at 2013 levels. Obama can set an alternative plan for civilian pay under federal law.

The one percent increase in monthly military pay is also authorized under statute. "This decision is consistent with my fiscal year 2014 Budget and will not materially affect the Federal Government's ability to attract and retain well-qualified members for the uniformed services," Obama wrote.

The pay increases take effect Jan. 1, 2014.

(By Adam Mazmanian)