Policy Updates

2026 Federal Pay Raise: 1% Increase with No Locality Adjustment

The 2026 federal pay raise is just 1% with no locality increase, the smallest since 2021. See how it affects your paycheck and calculate your new salary.

By FedTools Team6 min read

Federal employees received a 1% across-the-board pay raise for 2026. No locality pay adjustment. It's the smallest increase since 2021.

Here's what it means for your paycheck, and why some employees are feeling the squeeze.

Key Takeaways

  • The 2026 federal pay raise is 1% to base pay only with no locality increase
  • Effective date: January 11, 2026 (first full pay period after Jan 1)
  • Law enforcement officers get 3.8% (1% base + 2.8% LEO adjustment)
  • The Executive Level IV pay cap rises to $197,200

Why This Raise Feels Small

Let's be direct: a 1% raise with no locality adjustment doesn't keep pace with inflation, or even your health insurance premiums.

The math doesn't work:

  • Your raise: 1%
  • FEHB premium increase: ~12% (average)
  • Result: Many employees will see zero or negative growth in take-home pay

The Federal Salary Council reports that federal employees earn 24.72% less than private sector counterparts. Under the statutory formula (FEPCA), the 2026 raise should have been 3.3% base + 18.88% locality. Instead, you're getting 1% with frozen locality rates.

Here's what happened:

  • Base pay increase: 1%
  • Locality pay increase: 0%
  • Total average increase: 1%

Compare that to recent years:

Year Average Raise
2026 1.0%
2025 2.0%
2024 5.2%
2023 4.6%

The 2026 raise is the smallest since the 1% increase in 2021.

What this means: If you're a GS-12 Step 5 earning $95,000, your 1% raise adds about $950 per year, or roughly $36 per paycheck before taxes.

When Does the 2026 Pay Raise Take Effect?

The raise took effect on January 11, 2026, the first day of the first pay period beginning on or after January 1.

Here's the timeline:

  • Effective date: January 11, 2026
  • First new paycheck: Late January 2026 (varies by agency)

Check your Leave and Earnings Statement (LES) to confirm the new rate. Your base pay should show the 1% increase. Locality pay percentages remain the same as 2025.

2026 Locality Pay: Unchanged from 2025

This is the part that stings for many federal employees.

Locality pay percentages are frozen at 2025 levels. No adjustments for cost of living in high-expense areas.

Locality Area 2026 Rate Change from 2025
Washington-Baltimore-Arlington (DC) 33.94% No change
San Jose-San Francisco-Oakland 46.34% No change
New York-Newark 37.24% No change
Houston-The Woodlands 35.53% No change
Rest of United States 16.82% No change

Bottom line: You get 1% more on base pay. Your locality percentage stays the same. Total increase: roughly 1%.

What the 1% Raise Looks Like in Dollars

Here's how the 2026 raise translates to real money for DC-area employees:

Grade/Step 2025 Salary 2026 Salary Annual Increase
GS-9 Step 1 ~$69,900 ~$70,600 ~$700
GS-11 Step 1 ~$84,600 ~$85,450 ~$850
GS-12 Step 1 ~$101,400 ~$102,415 ~$1,015
GS-13 Step 1 ~$120,580 ~$121,785 ~$1,205
GS-14 Step 1 ~$142,490 ~$143,915 ~$1,425
GS-15 Step 1 ~$167,600 ~$169,275 ~$1,675

Note: These are approximate figures for DC locality. Use the calculator below for exact amounts.

Law Enforcement Officers Get a Bigger Raise

If you're a federal law enforcement officer, you're in better shape, receiving 3.8% total (matching the military raise).

LEOs receive:

  • 1% base pay increase (same as everyone)
  • 2.8% additional LEO adjustment via OPM special salary rate authority
  • Total: 3.8% increase

Agencies covered include:

  • Department of Justice: FBI Special Agents, DEA Special Agents, ATF Special Agents, U.S. Marshals, Bureau of Prisons Correctional Officers
  • Department of Homeland Security: CBP Officers & Border Patrol Agents, ICE Special Agents & Deportation Officers, Secret Service Agents, Federal Protective Service
  • Other agencies: USDA Forest Service LEOs, Interior/Park Police, State Department Diplomatic Security

The 3.8% increase is capped at Executive Level IV ($197,200). Some senior LEOs at high steps may not receive the full increase.

The 2026 Pay Cap: $197,200

The Executive Level IV pay cap increased slightly to $197,200 in 2026 (up from $195,200 in 2025).

This cap affects:

  • GS-15 employees at high steps in expensive localities
  • Some GS-14 Step 10 employees in top locality areas

If your calculated salary (base + locality) exceeds $197,200, you'll be capped at that amount.

Calculate Your 2026 GS Salary

Want to see your exact 2026 salary? Use our free GS Pay Calculator to:

  • See your new base pay + locality pay
  • Compare across different locality areas
  • Calculate biweekly and hourly rates
  • Check if you're hitting the pay cap

Calculate Your 2026 Salary →

Frequently Asked Questions

How much is the 2026 federal pay raise?

The 2026 federal pay raise is 1% applied to base pay only. There is no locality pay adjustment, making it the smallest increase since 2021.

When does the 2026 pay raise take effect?

The raise took effect January 11, 2026, the first day of the first full pay period beginning on or after January 1, 2026.

Did locality pay increase in 2026?

No. Locality pay percentages are unchanged from 2025. Only base pay received the 1% increase.

What is the GS pay cap for 2026?

GS employees cannot earn more than Executive Level IV, which is $197,200 in 2026.

Do law enforcement officers get a different raise?

Yes. Federal law enforcement officers receive a 3.8% total increase (1% base + 2.8% LEO adjustment). This applies to positions at FBI, DEA, CBP, ICE, Secret Service, Marshals, and other federal law enforcement agencies.

2026 COLA for Federal Retirees

Note: The annual pay raise (1%) is separate from the Cost-of-Living Adjustment (COLA) for retirees.

For 2026, federal retirees can expect:

  • CSRS retirees: Projected 2.7% COLA
  • FERS retirees: Projected 2.0% COLA (FERS reduces COLAs above 2%)

The COLA is based on the Consumer Price Index (CPI-W) and applies to annuity payments, not active employee salaries.

Calculate Your FERS Retirement →


Sources:

Free Tool

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