2027 Federal Pay Raise: FAIR Act Proposes 4.1% (What We Know Now)
The FAIR Act proposes a 4.1% federal pay raise for 2027 (3.1% base + 1.0% locality). What's confirmed, what's not, and what to watch.
2027 Federal Pay Raise: FAIR Act Proposes 4.1% (What We Know Now)
Last Updated: February 12, 2026 Reading Time: 7 min Status: This is a living policy tracker and will be updated as official actions occur.
If you're hearing "4.1% for 2027," that number comes from the newly introduced FAIR Act proposal — not from a final pay order.
As of Thursday, February 12, 2026, here's the clean read on where things stand.
Key Takeaways
- The FAIR Act proposal introduced on February 10, 2026 calls for an average 4.1% federal pay raise in 2027.
- The bill text breaks that into 3.1% base pay + 1.0% locality.
- Lead sponsors are Sen. Brian Schatz (D-HI) in the Senate and Rep. James Walkinshaw (D-VA) in the House, with Sens. Kaine and Warner as co-sponsors.
- The bill numbers are S.3823 (Senate) and H.R.7480 (House).
- This is not final. It's a proposal that still has to survive the full federal pay-setting process.
What the 2027 FAIR Act text actually says
In the bill text circulated by sponsors on February 10, 2026:
- Section 2 sets a 3.1% increase for statutory pay systems for calendar year 2027.
- Section 3 sets a 1.0% locality adjustment for calendar year 2027.
That's the source of the "4.1%" headline. The Senate version (S.3823) was introduced by Sen. Brian Schatz, and the House companion (H.R.7480) was introduced by Rep. James Walkinshaw. Sens. Kaine and Warner are co-sponsors on the Senate side and issued press releases supporting the bill.
The sponsor-posted Senate text still uses draft formatting ("S. ll" placeholder), so treat this stage as early process. The bill language itself, though, is specific: it amends 5 U.S.C. 5303 and 5 U.S.C. 5304 directly.
How this compares to past FAIR Act proposals
The FAIR Act has been introduced nearly every year since 2014. It has never been enacted at the proposed level — the final raise has always come through the standard presidential pay-setting process instead. But the proposals still matter because they signal where congressional advocates think federal pay should land.
Here's how the proposed percentages have stacked up recently:
| Year | FAIR Act proposal | Final raise enacted |
|---|---|---|
| 2024 | 8.7% | 5.2% |
| 2025 | 7.4% | 2.0% |
| 2026 | 4.3% | 1.0% (EO 14368) |
| 2027 | 4.1% | TBD |
The pattern is clear: the proposal sets a ceiling, not a floor. For 2026, the final raise was just 1.0% — well below the 4.3% FAIR Act proposal. That gap is one reason 2027's outcome is impossible to predict from the proposal alone.
The gap between proposal and outcome has been widening. In 2024, the FAIR Act proposed 8.7% and the final raise was 5.2% — a 3.5-point difference. In 2025, the proposal was 7.4% and the final raise was 2.0% — a 5.4-point gap. In 2026, the 4.3% proposal yielded just 1.0%, a 3.3-point gap. Whether the 2027 gap follows this trend or narrows depends largely on the White House's September alternative pay plan.
The 2026 raise landed at 1.0% through Executive Order 14368. OPM published the updated pay schedules in early January 2026. That low number is part of why the 4.1% proposal for 2027 is generating attention — after a year of 1%, even a partial increase would feel significant.
It's also worth noting that the FAIR Act's proposed percentages have been declining. The 2024 proposal was 8.7%, then 7.4%, then 4.3%, and now 4.1%. Sponsors have argued the lower number for 2027 reflects alignment with the Employment Cost Index (ECI), which is the benchmark federal pay is supposed to track under the Federal Employees Pay Comparability Act (FEPCA).
Where this sits in the process
Right now this is in the proposal stage.
- The 2027 FAIR Act was introduced on February 10, 2026 in both chambers.
- The prior year's FAIR Act versions — S.126 and H.R.493 (the 2026 proposals) — are still listed at "Introduced" status on Congress.gov, which is typical. These bills rarely advance through committee.
- Final 2026 rates were set through Executive Order 14368 and OPM's January 2026 pay schedules.
Proposal language can be directionally important, but it's not the same as final payable rates.
Why this matters for planning
Even without final numbers, this proposal gives you a planning anchor.
For quick scenario budgeting, here's what a 4.1% raise would mean at different salary levels:
| Current salary | 4.1% increase | New salary |
|---|---|---|
| $60,000 | +$2,460 | $62,460 |
| $80,000 | +$3,280 | $83,280 |
| $100,000 | +$4,100 | $104,100 |
| $130,000 | +$5,330 | $135,330 |
These are rough estimates before tax and deductions. Your actual increase depends on your locality pay area and whether Congress adjusts the base-locality split.
For a more accurate projection, use a range model instead of a single number:
- Conservative: 1.0%–2.0%
- Middle: 2.0%–3.0%
- Upside: 4.1% (FAIR Act proposal)
Run your grade, step, and locality through the GS Pay Calculator so you're looking at a realistic biweekly range instead of a single guess. If you're within a few years of retirement, factor these scenarios into your pension estimate too — your high-3 average is directly affected by pay raises in your final years.
One thing people miss: the base-locality split matters more than the headline number. A 3.1% base increase applies uniformly across all pay areas, but the 1.0% locality adjustment gets distributed differently depending on your area's pay gap. If you're in a high-cost area like DC, San Francisco, or New York, your locality component is already a large share of total pay, so even a small locality adjustment moves the needle. If you're in the Rest of US area, the locality percentage is lower, and the base increase does more of the heavy lifting.
This is also why two GS-12 Step 5 employees in different cities would see different dollar amounts from the same 4.1% raise. The percentage is an average — your actual result depends on where you work.
What to watch next
- Summer 2026: Negotiation and positioning between Congress and the White House.
- Before September 1, 2026: If the President chooses an alternative adjustment under 5 U.S.C. 5303(b), that plan is sent to Congress.
- Late 2026 (typically December): Final pay order and schedules are issued for the coming year.
- January 2027: New rates take effect at the first applicable pay period.
We'll update this post as each milestone hits. Bookmark it or check back after September for the next major development. If you want to stay ahead of the numbers, set up your scenarios in the GS Pay Calculator now so you can plug in the final rates the moment they drop.
FAQ
Is the 2027 federal pay raise 4.1% right now?
No. As of February 12, 2026, 4.1% is a proposal in the FAIR Act, not final law. Final 2027 rates are typically set later in 2026 through the federal pay process.
What does the 4.1% FAIR Act proposal include?
The released FAIR Act text proposes a 3.1% across-the-board increase under 5 U.S.C. 5303 and a 1.0% locality adjustment under 5 U.S.C. 5304 for calendar year 2027.
When will final 2027 federal pay numbers be known?
Historically, final rates are locked in late in the year. The President can submit an alternative pay plan before September 1 of the preceding year, and final schedules are usually set in December for January implementation.
How should I estimate my 2027 salary right now?
Use 4.1% as a planning scenario, not a guarantee. A simple estimate is current annual salary multiplied by 1.041, then compare with lower scenarios (for example 1%–2%) to create a conservative budget range.
Could the final 2027 raise be lower than 4.1%?
Yes. Congress and the White House can set a different final amount. Prior FAIR Act proposals have often been introduced but not enacted at the proposed level.
Related Resources
- GS Pay Calculator — Model your 2027 salary scenarios
- GS Pay Guide 2026 — Current pay tables, locality areas, step increases
- 2026 Federal Pay Raise — How last year's raise played out
- FERS Retirement Calculator — Factor pay changes into your pension estimate
Sources
- Schatz press release (Feb 10, 2026): FAIR Act proposal for 4.1% in 2027
- Kaine press release (Feb 10, 2026): co-sponsor announcement
- Warner press release (Feb 10, 2026): bicameral FAIR Act announcement
- GovExec: Dem lawmakers propose 4.1% raise for feds in 2027 (Feb 11, 2026)
- FedSmith: Federal employees could see 4.1% pay raise in 2027 (Feb 11, 2026)
- Federal News Network: Democrats call for 4.1% federal pay raise in 2027 (Feb 2026)
- Congress.gov S.3823 (2027 FAIR Act — Senate)
- Congress.gov H.R.7480 (2027 FAIR Act — House)
- Congress.gov S.126 (2026 FAIR Act — for reference)
- Federal Register: Executive Order 14368 (final 2026 pay order)
- Federal Register OPM notice: January 2026 pay schedules
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