Federal Employees: What Happens to Your Pay & Benefits in a Shutdown?
Mar 13, 2025Government shutdowns are a stressful reality for federal employees, bringing uncertainty about pay, benefits, and financial stability. While the rules can change, here’s what you need to know about how a shutdown could affect you and how to prepare.
Who Gets Paid and When?
If a shutdown occurs:
- Furloughed employees (those not working) will not receive pay during the shutdown, but thanks to a 2019 law, they will receive full back pay once funding is restored.
- Excepted employees (those required to work) must continue working without pay, but they will also receive back pay when the shutdown ends.
This means that while your paycheck may be delayed, your earnings are protected in the long run.
What About Health and Retirement Benefits?
- Health benefits will remain active. Premiums will still be deducted from future paychecks when funding resumes.
- Retirees receiving annuity payments from the federal government will continue to get their checks on schedule.
- Thrift Savings Plan (TSP) contributions will be paused for furloughed employees until pay resumes.
Can You Apply for Unemployment?
Some furloughed employees may be eligible for unemployment benefits, but there’s a catch: If you receive back pay once the shutdown ends, you must repay any unemployment benefits received.
How to Prepare
If a shutdown seems likely, consider taking these proactive steps:
- Budget accordingly to manage expenses in case of a delayed paycheck.
- Review your financial reserves to ensure you can cover essential bills.
- Stay informed by following credible sources for updates on government funding negotiations.
Find Support Through Mindfulness & Community
Shutdowns bring uncertainty, but managing stress and maintaining resilience is key. The Mindful Federal Employee Power Hub Membership offers a community and resources to help you stay grounded during challenging times. Through mindfulness practices and expert guidance, you can navigate workplace stress, financial anxiety, and career uncertainties with a sense of control.
Stay Informed & Take Control
With Congress currently debating funding, agencies are preparing for possible shutdown procedures. If no agreement is reached, your paycheck could be affected as early as March 24th. Staying informed is crucial.
For more guidance on protecting your career and reducing stress during government shutdowns, consider joining the Mindful Federal Employee Power Hub Membership.
Legal Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. While I am a federal employment attorney, this post does not create an attorney-client relationship. Every situation is unique, and legal outcomes depend on specific facts and circumstances.