Federal employees have officially received clarity on their 2026 pay adjustment. The White House has finalized a 1% across-the-board pay raise for General Schedule (GS) employees through a new Executive Order. While any increase is welcome, the absence of locality pay adjustments makes this one of the smallest annual raises in recent years.
So, how much will you actually see in your paycheck? And what should federal workers expect next? Here’s a simple breakdown.
Overview of the 2026 Federal Pay Raise
The 2026 federal pay raise applies to most civilian employees under the General Schedule (GS) system.
Key Highlights
- 1% base pay increase
- No locality pay increase
- Effective from the first applicable pay period on or after January 1, 2026
- Impacts thousands of federal employees nationwide
The updated pay tables have been released by the Office of Personnel Management (OPM), reflecting the new base rates.
What’s Different in 2026?
No Locality Pay Adjustment
Typically, federal pay raises include:
- Base pay increase
- Locality pay adjustment (for high-cost areas)
In 2026, only the base pay was increased. This means employees in cities with higher living costs—like Washington, D.C., San Francisco, or New York—will not see additional locality-based boosts.
Smallest Raise Since 2021
Recent annual increases ranged between 1.5% and 3%. The 1% raise reflects tighter federal budget planning and spending controls.
Who Is Affected?
The Executive Order applies to multiple federal pay systems:
- General Schedule (GS) employees (Grades 1–15)
- Senior Executive Service (SES)
- Foreign Service personnel
- Veterans Health Administration employees
- Selected positions in executive, legislative, and judicial branches
Some federal law enforcement officers may qualify for additional adjustments up to 3.8%, depending on agency determinations.
Example: How Much More Will You Earn?
Let’s look at a real-world scenario.
GS-9, Step 5 Employee Example
- Current salary (example): $60,000
- 1% increase: $600 annually
- Approximate monthly increase: $50 before taxes
While helpful, this modest increase may not fully offset rising housing, food, and transportation costs in higher-cost regions.
2026 GS Pay Scale Update at a Glance
| Category | 2026 Adjustment |
|---|---|
| Base Pay Increase | 1% |
| Locality Pay Increase | None |
| Effective Date | January 2026 |
| Law Enforcement Adjustment | Up to 3.8% (if approved) |
Employees should verify their updated pay rates using official OPM pay tables and confirm correct grade and step placement with their HR department.
Budget Impact for Federal Workers
What This Means for Your Finances
A 1% raise may:
- Slightly increase monthly take-home pay
- Provide small flexibility for savings or retirement contributions
- Help cover minor inflation-related expenses
However, without locality adjustments, employees in high-cost areas may feel limited financial improvement.
Quick Tips for Federal Employees
- ✔️ Review the 2026 GS pay tables on OPM’s official website
- ✔️ Confirm your grade and step placement
- ✔️ Monitor your January 2026 paycheck carefully
- ✔️ Consult HR if discrepancies appear
- ✔️ Adjust personal budgets if needed
Frequently Asked Questions (FAQs)
1. When does the 2026 federal pay raise take effect?
It applies to the first applicable pay period beginning on or after January 1, 2026.
2. Does the 1% increase include locality pay?
No. The 2026 adjustment only includes a 1% base pay increase and no locality pay boost.
3. Who qualifies for the raise?
Most civilian federal employees under the GS system and other statutory pay systems are covered.
4. Will law enforcement officers receive more than 1%?
Possibly. Certain federal law enforcement personnel may qualify for additional adjustments up to 3.8%.
5. How can I verify my updated salary?
Check the official 2026 GS pay tables published by OPM and confirm details with your agency’s payroll office.
Final Thoughts: Is the 2026 Raise Enough?
The 2026 federal employee pay raise offers modest financial relief, but the lack of locality pay adjustments reduces its overall impact—especially in high-cost cities. While the 1% increase adds some stability, it may not fully match inflation pressures.
Federal employees should proactively review their updated pay rates, adjust financial plans accordingly, and stay informed about future compensation discussions.
If you’re a federal worker, now is the time to review your 2026 pay details and ensure everything is accurate before your first January paycheck arrives.