Federal employees will see a 1.0% pay raise in 2026 while active military members will get 3.8%. Details on the federal employee pay increase, the executive order recently signed, and the 2026 federal pay charts.
2026 Pay Raise for Feds Officially 1.0 Percent: Updated General Schedule Federal Salary Tables
The 2026 federal pay raise is now official. After much anticipation among federal employees, an executive order has been signed by President Trump, confirming a 1.0% across-the-board pay raise for civilian federal employees. No adjustments to locality pay rates were made. Active US Military Members will receive a 3.8% pay increase.
Overview of the 2026 Pay Increase for Federal Employees
For federal workers anticipating a significant pay increase in 2026, the reality is a bit more modest. The 1.0 percent across-the-board pay raise applies to the base pay of most federal employees. This means that regardless of your position or General Schedule (GS) grade, your basic pay will increase by 1.0 percent and the percentage of that new amount that will used to determine locality pay will not change.
Details of Executive Order Finalizing 1.0% Across-the-Board Pay Raise
The executive order solidifies the 1.0 percent across-the-board pay raise for 2026 that was first detailed in August when the White House alternative pay plan was released.. According to OPM guidance, this raise impacts the basic pay for most civilian federal employees. While this pay raise provides some financial relief, many feds are questioning whether it is sufficient, especially when factoring in rising costs of living and other financial pressures impacting federal employees. Military members get a 3.8% pay raise, as separate congressional procedures govern their compensation. FERS retirees will see a 2.0% COLA in 2026.
Impact on Locality Pay and Federal Workers
A key point of contention is the absence of any changes to locality pay rates. Locality pay for federal workers is designed to address cost-of-living differences in various designated pay areas across the United States. The absence of locality pay adjustments means that federal employees in high-cost areas will still receive the locality rates, but at the same rate as in 2025. This can significantly impact the financial well-being of federal employees eligible for locality pay, particularly those in expensive geographic areas.
Comparison with Previous Federal Government Pay Raises
Comparing the 2026 pay raise to previous years is about on par to the small increases seen during the first Trump administration. The pay raises finalized by President Biden were some of the biggest since the late 1970s. In 2025, the last pay raise from Biden, was 2.0% on average with locality pay and 1.7% across the board. The lack of significant adjustments to locality pay is a new concern for some feds. This raises questions about the government’s commitment to attracting and retaining top talent within the federal workforce as non-federal pay is often attracting people to the private sector.
Financial Implications of 2026 Federal Employee Pay Raise
The question on many federal employees’ minds is whether the 2026 federal pay raise of 1.0 percent is sufficient to keep pace with inflation. Unfortunately, the answer is likely no. With inflation rates often exceeding this 1.0 percent raise, federal workers may find their purchasing power diminished.
The Importance of TSP and HSA Savings
Given the modest 2026 pay raise, it becomes increasingly important for federal employees to maximize their savings and investments. The Thrift Savings Plan (TSP) and Health Savings Accounts (HSAs) are two valuable tools in this regard. By contributing to these accounts, federal employees can take advantage of tax benefits and grow their retirement savings.
Learn more at a free online TSP webinar.
2026 Pay Raise Impact on FERS Pension Calculation
The 2026 federal pay raise will have a marginal impact on the FERS annuity calculation. A federal pension’s dollar amount is based on an employee’s high-3 average salary, so a 1.0 percent increase in base pay may slightly affect the final retirement annuity. Federal employees should carefully review their retirement plans and consider additional strategies to enhance their retirement income, particularly given the small 2026 pay raise.
Estimate your FERS Income with the Federal Retirement Benefit Calculator.
2026 General Schedule Pay Scale Table Information
The General Schedule (GS) pay scale is the foundation for determining the rate of pay for most federal employees. It consists of 15 grades (GS-1 through GS-15), with multiple steps within each grade. The 2026 federal pay raise of 1.0 percent will be applied to these pay tables, resulting in a slight increase in the basic pay for each grade and step. The Office of Personnel Management (OPM) releases updated pay tables each year to reflect these changes. Here is the updated chart:
Impact on Various Federal Employee Categories on GS Pay Tables
The 2026 federal pay raise affects various categories of federal employees differently. For example, certain law enforcement pay categories, such as border patrol agents and law enforcement officers, may have alternative pay plan structures that impact how the raise is applied. It’s essential for federal employees to understand how the pay raise affects their specific pay scale and position.
Special Considerations for Federal Law Enforcement and Border Patrol Agents
Special considerations exist for law enforcement personnel regarding the 2026 federal pay raise. Certain law enforcement categories may have unique pay scales or alternative pay plans that differ from the standard GS pay scale. These differences can affect how the 1.0 percent pay raise is applied and the overall impact on their federal salary. Federal law enforcement should consult with their agency’s HR department for specific details regarding their 2026 pay adjustments. Law enforcement officers and border control agents will receive a 3.8% bump in some cases, similar to the military raise.
Adjusting Financial Plans Post-Pay Raise
The small across-the-board pay raise necessitates a closer look at retirement planning for federal employees. Given that the 2026 pay increase is only 1.0%, federal employees should consider increasing their contributions to the Thrift Savings Plan (TSP). This is particularly important for those in locality pay areas where the cost of living is high. Boosting TSP contributions can help offset the impact of a modest pay raise on long-term retirement savings, so civilian federal employees have a more secure future.
Strategies for Feds to Manage Finances
With a modest raise next year, federal employees should take time to refine their financial strategies. Federal workers need to re-evaluate their budgets, seeking ways to optimize savings and reduce expenses. Federal salary should be carefully managed to counteract the effects of inflation and the lack of locality pay adjustments. Exploring options like refinancing debt or consolidating loans can free up additional funds.
Meet with a Fed-Expert Retirement Planner
2026 Federal Pay Raise: Key Takeaways
- 1.0% increase may not be sufficient for many feds
- The absence of locality pay adjustments exacerbates the issue, especially for those in high-cost areas.
- Federal employees must take proactive steps to manage their finances, maximize savings, and plan for retirement.
Retiring Soon? Sign Up for an Online Federal Retirement Workshop
Enrolling in a federal retirement workshop can provide valuable insights into maximizing retirement benefits and navigating the complexities of FERS. These workshops often cover topics such as Social Security, Medicare, and TSP withdrawal strategies. Sign up today!
Register Here for a FERS Webinar.
