Here’s What Federal Workers Should Know About Getting Retroactive Pay

Here’s What Federal Workers Should Know About Getting Retroactive Pay

As the federal government enters another shutdown, hundreds of thousands of federal employees are once again facing furloughs or unpaid work. But for many, one of the biggest questions is the same as it’s been in past shutdowns: Will I get paid back when this ends?

The short answer is yes, eventually. But how and when that happens depends on your employment status, your agency’s payroll schedule, and how long it takes Congress to pass, and the president to sign, a funding bill.

Here’s a breakdown of what federal workers should know about retroactive pay and how the process typically works.

1. Retroactive Pay Is Guaranteed by Law

Under the Government Employee Fair Treatment Act of 2019, all federal employees, both furloughed and those required to work during a shutdown, are guaranteed back pay once the government reopens.

That means whether you’re a TSA officer still screening passengers or an IRS worker temporarily locked out of your office, your missed paychecks will be issued after the shutdown ends.

“The law ensures federal workers won’t permanently lose income because of political gridlock,” said Lisa Rein, a federal workforce analyst. “But the uncertainty still causes serious financial strain.”

2. Timing Depends on Agency Payroll Cycles

Once funding is restored, agencies must restart payroll operations, reconcile missed pay periods, and process the back pay. That can take several days to a few weeks, depending on the complexity of the agency’s system.

Employees are typically paid their full regular wages for the shutdown period, including locality pay, overtime, and other eligible compensation.

Contractors, however, are not guaranteed back pay unless their employers choose to compensate them.

“If you’re a contractor, it’s a gray area, it depends on the contract and the company,” said Max Stier, president of the Partnership for Public Service.

3. Benefits and Leave Accruals Continue

For most employees, benefits such as health insurance, retirement contributions, and life insurance continue uninterrupted during a shutdown. Premiums for the Federal Employees Health Benefits (FEHB) program are still deducted from retroactive pay once it’s processed.

Likewise, annual and sick leave continue to accrue for those required to work during the shutdown. Furloughed workers do not accrue leave during the shutdown, but it resumes, and is retroactively credited, once operations restart.

4. What About Thrift Savings Plan (TSP) Contributions?

TSP contributions are tied to paychecks, so any missed deposits will automatically be made up when back pay is issued. However, employees cannot make elective changes or new contributions during the shutdown.

5. Agencies Will Issue Guidance Once Funding Returns

Each federal agency issues its own internal guidance after a shutdown ends, outlining how employees will receive back pay and when normal operations resume. In the 2018–2019 shutdown, the longest in U.S. history, most workers received their retroactive pay within five business days of reopening.

6. Financial Assistance Options

Several credit unions, banks, and employee associations are once again offering zero-interest loans and paycheck-advance programs to help affected workers bridge the gap.

The Office of Personnel Management (OPM) has also advised workers to reach out to creditors and landlords proactively to explain the situation and request flexibility.

“Shutdowns are stressful, but they do end, and back pay does come,” OPM said in a public advisory this week.

Bottom Line

For most federal employees, the law guarantees that no paycheck is permanently lost, only delayed. But while retroactive pay offers reassurance, it doesn’t erase the financial and emotional toll of being caught in another political standoff.

“Every shutdown is a reminder that public servants are being used as bargaining chips,” said one furloughed Department of Agriculture employee. “We’ll get paid eventually, but that doesn’t make it easier to wait.”