Federal Employee Pay Raise for 2026: What You Need to Know
Federal employees will see a pay raise in 2026, but the increase is smaller than in recent years. On December 18, President Trump signed an executive order approving a 1% pay raise for most federal civilian workers.
This marks the smallest adjustment since 2021.
Details of the Pay Raise
The 1% pay boost applies to most civilian employees across federal agencies. The new rates were confirmed earlier in August and are now official following the executive order.
- The increase takes effect during the first full pay period after January 1, 2026.
- There will be no additional increases based on location (“locality pay”) in 2026.
While the raise is modest, it is still an increase. This comes after a tough year, which saw a prolonged government shutdown and widespread layoffs, putting job security and wage growth in question for many federal employees.
Who Gets the Pay Raise?
Not all federal workers will get the same 1% raise. Here’s what’s changing for different groups:
- Most civilian employees: 1% pay raise
- Members of the armed forces: 3.8% pay raise
- Federal law enforcement personnel: Some may qualify for up to a 3.8% raise (The executive order does not specify exactly which positions will receive the full increase, but officials will notify those eligible.)
Impact Compared to Inflation
Although the raise offers some relief, it does not keep up with the rising cost of living and inflation. For example, health insurance costs for federal workers are expected to jump by more than 12% next year. This means that real income may not increase for many employees.
According to the American Federation of Government Employees (AFGE), federal salaries are still, on average, 27% lower than similar jobs in the private sector. This makes hiring and keeping workers harder for government agencies.
Pay Raises Over the Past Decade
Here’s a look at previous General Schedule pay increases for federal employees:
- 2025: 1.7%
- 2024: 4.7%
- 2023: 4.1%
- 2022: 2.2%
- 2021: 1%
- 2020: 2.6%
- 2019: 1.4%
- 2018: 1.4%
- 2017: 1%
- 2016: 1%
- 2015: 1%
The 1% raise for 2026 matches the lowest increase over the last decade and does not include locality pay for 2026.
Law Enforcement and Military Increases
Some federal law enforcement officers may get an additional 2.8% raise, bringing their total pay bump to 3.8%. The Office of Personnel Management (OPM) will inform eligible employees about these changes.
The 3.8% increase for law enforcement matches the pay raise for members of the military.
TL;DR
Federal employees will get a small pay raise in 2026, but some groups, like the military and certain law enforcement officers, will receive a bigger increase.
The raise does not fully cover inflation, and federal wages continue to lag behind what is paid in similar private sector jobs.
If you’re a federal employee, watch for official notifications from your agency or the OPM to find out exactly how the raise will affect your pay next year.
-
Subscribe to our weekly newsletter for instant updates and articles straight to your inbox.