The 2026 federal pay raise has been confirmed with a 1 percent increase in base General Schedule pay. However, there will be no additional locality pay boost this year, meaning overall salary growth for many federal employees will remain limited.
Federal pay adjustments are typically determined through executive action and budget planning processes that consider inflation, fiscal conditions and workforce competitiveness.
What the 1 Percent GS Increase Means
The 1 percent increase applies to the General Schedule base pay table. This affects most civilian federal employees across agencies and departments under the GS classification system.
While the increase provides some relief, it may not fully offset rising living costs in certain regions, particularly without a separate locality pay adjustment.
Pay Adjustment Breakdown
| Component | 2025 Structure | 2026 Update |
|---|---|---|
| Base GS Pay | Existing pay scale | 1% increase applied |
| Locality Pay | Region-based adjustments | No additional boost |
| Total Increase | Base plus locality | Base increase only |
The final take-home impact depends on grade level, step progression and individual locality area.
Impact on Federal Employees
For many employees, the absence of a locality boost means salary growth will be modest compared to previous years that included both base and locality adjustments.
Higher GS grades may see slightly larger dollar increases due to the percentage-based calculation, but the overall growth rate remains limited.
Budget and Policy Context
Federal pay raises are influenced by annual budget priorities and economic considerations. Policymakers balance workforce retention needs with broader fiscal constraints.
In years of tighter budget conditions, base increases may be smaller and locality adjustments may be paused or limited.
Long-Term Considerations
Employees should consider how incremental annual raises affect retirement contributions, Thrift Savings Plan allocations and overall career earnings.
Although a 1 percent raise may seem modest, cumulative annual increases over time can still contribute to long-term salary progression.
Conclusion
The 2026 federal pay raise confirms a 1 percent increase in base GS pay without an additional locality adjustment. While the raise provides some salary growth, its impact will vary depending on grade and region. Federal employees should review updated pay tables and plan financial decisions accordingly.
Disclaimer: This article is for informational purposes only. Federal pay adjustments are subject to official government announcements and implementation guidelines. Employees should refer to authorised federal payroll resources for accurate and updated salary information.