The Federal Worker Pay Increase 2026 is now official, and the number is smaller than many federal employees expected. President Trump signed Executive Order 14368 on December 18, 2025, finalizing a 1.0% across-the-board pay raise for most civilian federal employees under the General Schedule and other statutory pay systems — with no increase to locality pay, which stays frozen at 2025 levels. This is the smallest annual federal pay raise since 2021 (also set during Trump’s first term), a sharp drop from the roughly 2% average increase federal workers received in 2025. The raise takes effect on the first day of the first full pay period beginning on or after January 1, 2026, which lands on January 11, 2026 for most agencies. We’ll be updating this article monthly as OPM releases further implementation guidance and as the law enforcement pay adjustment referenced in the order is finalized.
This guide breaks down exactly who qualifies for the 2026 raise, why it’s only 1% instead of the larger statutory formula amount, what’s different for federal law enforcement officers (who may see up to 3.8%, matching the military pay raise), how locality pay is affected in high-cost cities, and where to check your own updated pay rate directly through OPM’s official tables. Every figure below comes from the Federal Register, OPM, and the White House’s own executive order text — not secondhand estimates.
Federal Worker Pay Increase 2026 Key Highlights
| Item | Details |
|---|---|
| 2026 federal pay raise | 1.0% across-the-board base pay increase |
| Locality pay adjustment | None — frozen at 2025 levels |
| Legal authority | Executive Order 14368, signed December 18, 2025 |
| Effective date | First full pay period on/after Jan 1, 2026 (Jan 11, 2026 for most agencies) |
| 2025 comparison raise | ~2% average |
| Smallest raise since | 2021 |
| Law enforcement personnel | Up to 3.8% total (1% base + up to 2.8% via OPM special rate authority) |
| 2026 military pay raise | 3.8% (for comparison) |
| Number of locality pay areas | 58 areas, ranging from 17.06% to 46.34% (unchanged) |
| 2026 aggregate pay limitation | $253,100 (standard); $292,300 for certified SES/SL/ST performance systems |
| Prior order superseded | Executive Order 14132 (December 23, 2024) |
What Is the 2026 Federal Pay Raise, Exactly?
The 2026 federal pay raise gives every General Schedule (GS) employee — along with employees under other statutory pay systems — a flat 1.0% increase to base pay, effective at the start of the first full pay period on or after January 1, 2026. Because locality pay percentages stayed exactly where they were in 2025, and locality pay is calculated as a percentage of base pay, a slightly higher base does produce a tiny additional dollar amount in locality-adjusted pay — but for virtually every GS employee, the total 2026 raise rounds to 1.0%, regardless of where they’re stationed.
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Why Is the 2026 Raise Only 1%, Instead of the Statutory Formula Amount?
Federal pay raises are technically governed by a statutory formula tied to private-sector wage growth (the Employment Cost Index). However, under 5 U.S.C. 5303(b) and 5304a, the President can override that formula by transmitting an “alternative pay plan” to Congress, citing “national emergency or serious economic conditions affecting the general welfare.” Every annual federal raise since the early 1990s has actually been set this way — through an alternative plan, not the statutory default. For 2026:
- The White House transmitted its alternative pay plan to Congress on August 28, 2025
- The plan stated plainly that “federal agency budgets cannot sustain such irresponsible increases,” referring to what the statutory formula would have otherwise produced
- Congress had the opportunity to override the alternative plan with its own legislation specifying a different raise, but did not do so
- The plan was then formalized through Executive Order 14368 on December 18, 2025, locking in the 1.0% rate and the locality-pay freeze for the year
Who Qualifies for the 2026 Federal Pay Raise?
The 1.0% increase applies broadly across the federal civilian workforce, including:
- General Schedule (GS) employees — the largest group affected, covering most federal white-collar civilian positions
- Administrative Law Judges (ALJs) — also receive a 1.0% increase, rounded to the nearest $100 (for example, AL-1 rises to $197,200 and AL-2 to $192,400)
- Senior Executive Service (SES) and SL/ST employees — subject to the 2026 aggregate pay limitations described below
- Other statutory pay system employees — most other civilian schedules covered under the same executive order
Federal civilian law enforcement personnel are treated differently (see the next section) and may receive a larger total increase than the standard 1.0%.
Federal Law Enforcement: Why They May Get Up to 3.8%
One of the more notable carve-outs in Executive Order 14368 involves federal civilian law enforcement officers. The order directs the Office of Personnel Management (OPM) to “assess whether to provide” these employees a total pay increase of up to 3.8% — matching the 2026 military pay raise — with any amount beyond the standard 1.0% base increase potentially delivered through OPM’s special rate authority rather than a straightforward across-the-board raise. As of this update, it is not yet finalized exactly which law enforcement positions will receive the larger increase, or the precise mechanism OPM will use to implement it. The administration has framed this provision as a tool to “increase recruitment and retention in critical law enforcement” roles.
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How Does This Compare to the 2026 Military Pay Raise?
Service members are on track to receive a 3.8% base pay raise for 2026 — significantly larger than the 1.0% civilian federal raise. This figure was proposed by the White House and later included in the annual National Defense Authorization Act (NDAA). The gap between the 3.8% military raise and the 1.0% civilian raise is part of why the administration built in the possibility of a matching increase for federal civilian law enforcement personnel specifically, rather than extending it to the broader civilian workforce.
What Does the Locality Pay Freeze Mean for High-Cost Areas?
For 2026, locality pay percentages remain exactly at their 2025 levels across all 58 locality pay areas, which currently range from 17.06% to 46.34% depending on the metro area. In practical terms:
- Employees in high-cost regions like Washington, D.C., New York, and San Francisco keep their existing locality supplement percentage, but that percentage did not grow for 2026
- Because private-sector wages in many of these expensive metro areas likely continued climbing, the gap between federal and private-sector pay in those cities may have widened further in 2026
- The only growth locality-pay recipients see this year comes from the 1.0% base pay increase being multiplied by their unchanged locality percentage — a small dollar increase, not a new percentage boost
When Does the 2026 Pay Raise Take Effect?
The raise is effective on the first day of the first applicable pay period beginning on or after January 1, 2026. Based on the standard federal biweekly pay period calendar, this places the effective date at January 11, 2026 for most agencies. Employees should have seen the adjusted rate reflected in their first full paycheck of the new pay period, not necessarily on January 1 itself, since federal pay periods don’t always align neatly with the calendar year start.
2026 Pay Caps: SES, SL/ST, and Aggregate Limitations
For 2026, the aggregate limitation on pay is set at $253,100, equivalent to the Executive Level I (EX-I) rate. However, SES members and SL/ST employees covered by a certified performance appraisal system are subject to a higher aggregate limitation, tied to the Vice President’s salary of $292,300 in 2026. These caps determine the maximum total compensation (including base pay plus locality pay and most other forms of pay) a covered federal employee can receive in a calendar year, under 5 U.S.C. 5307 and 5 CFR part 530, subpart B.
Recent Federal Pay Raise History (For Context)
| Year | Federal Civilian Raise | Notes |
|---|---|---|
| 2021 | 1.0% | Previously the smallest recent raise, also set under Trump’s first term |
| 2022–2024 | Larger increases | Includes locality pay adjustments in most years |
| 2025 | ~2.0% average | Included both base pay and locality components |
| 2026 | 1.0% | No locality increase; smallest since 2021 |
How the Federal Pay Raise Process Works Each Year
- Statutory formula calculation — the default raise amount is calculated based on private-sector wage growth data (Employment Cost Index)
- Alternative pay plan (if any) — the President can transmit an alternative plan to Congress, typically by late August, citing economic conditions as justification for a different amount
- Congressional review — Congress can pass its own legislation to override the alternative plan, though this is rare in practice
- Executive Order — if Congress doesn’t act, the President finalizes the alternative plan through an executive order, typically signed in mid-to-late December
- OPM implementation guidance — OPM issues pay tables and technical guidance so agencies can apply the new rates starting with the first applicable pay period of the new year
What Federal Employees Should Do Now
- Check your updated pay rate directly through your agency’s payroll system or OPM’s official 2026 pay tables
- Confirm your locality pay area’s current percentage, since it did not increase for 2026 even though your base pay did
- Federal law enforcement personnel should watch for OPM’s forthcoming guidance on the potential additional pay adjustment, since the mechanism and eligible positions were not fully finalized as of this update
- SES/SL/ST employees should confirm whether the 2026 aggregate pay limitation affects their total compensation, particularly if under a certified performance appraisal system
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Official Resources & Status Check Links
| Resource | Purpose | Official Link |
|---|---|---|
| OPM – 2026 Pay & Leave | Official GS pay tables and pay policy guidance | opm.gov/policy-data-oversight/pay-leave |
| Federal Register – January 2026 Pay Schedules | Full text of Executive Order 14368 and pay schedule notice | federalregister.gov |
| OPM – Salaries & Wages | Look up current federal salary tables by grade/step and locality | opm.gov/policy-data-oversight/pay-leave/salaries-wages |
| USAJOBS | Federal job listings and salary information by position | usajobs.gov |
| OPM – Fact Sheets | Detailed explanations of pay administration rules | opm.gov/policy-data-oversight/pay-leave/pay-administration |
FAQs
What is the federal pay raise for 2026?
1.0% across-the-board increase to base pay for most civilian federal employees, with no increase to locality pay.
When does the 2026 federal pay raise take effect?
On the first day of the first full pay period beginning on or after January 1, 2026, which falls on January 11, 2026 for most agencies.
Who signed the executive order for the 2026 federal pay raise?
President Donald Trump signed Executive Order 14368 on December 18, 2025.
Does locality pay increase in 2026?
No. Locality pay percentages remain frozen at their 2025 levels across all 58 locality pay areas.
Why is the 2026 federal raise smaller than previous years?
The administration’s alternative pay plan, transmitted to Congress in August 2025, cited budget constraints, stating that a larger statutory-formula raise was not sustainable for federal agency budgets.
Conclusion
The 2026 federal pay raise lands well below what many employees anticipated: a flat 1.0% base pay increase, with locality pay frozen for the first time in recent memory, formalized through Executive Order 14368 after the administration’s alternative pay plan went unchallenged by Congress. The clearest exception is federal civilian law enforcement personnel, who may ultimately see a total increase closer to the 3.8% military pay raise, though the details remain in progress. For most federal employees, the practical takeaway is straightforward: check your specific GS grade, step, and locality pay area against OPM’s official 2026 tables, since the raise’s real dollar impact varies more by location and pay system than the flat 1.0% headline number might suggest.
