Last Updated: October 4, 2026 Reading Time: 7 min
The 2027 pay plan holds General Schedule pay at 2026 rates, and FEHB premiums are going up. For an employee with Blue Cross Blue Shield Standard family coverage, the premium rises $39.24 a paycheck, or $1,020.24 a year. With a 0% raise, that is a pay cut, and its size depends on your grade.
What Is and Is Not Final About 2027 Pay
The President's alternative pay plan, transmitted to Congress as House Document 119-189 and dated August 26, 2026, holds General Schedule base pay and locality pay at 2026 rates for 2027.
Three things could still change that:
- The executive order. The plan is carried out by an executive order that normally comes in December.
- Congress. A raise would have to be written into law. The stopgap funding law that runs through December 11, 2026 sets no GS pay percentage.
- The FAIR Act. The bill proposing a 4.1% raise has not moved past its committee referral since February.
Two groups are outside this article's math. Law enforcement personnel receive a separate 3.8% increase through special rates. Postal employees are in PSHB, where the average enrollee increase is 8.2%.
For how the pay process works from here, see our 2027 pay raise mechanics guide.
What Blue Cross Costs in 2027
OPM says the average FEHB enrollee share rises 10.9% for 2027. That is an average across all plans. Here are the actual figures for the two largest Blue Cross options.
| Plan and enrollment | 2026 per paycheck | 2027 per paycheck | Increase per paycheck | Increase per year | Percent |
|---|---|---|---|---|---|
| Standard, Self Only | $188.32 | $204.65 | +$16.33 | +$424.58 | 8.67% |
| Standard, Self Plus One | $410.88 | $449.89 | +$39.01 | +$1,014.26 | 9.49% |
| Standard, Self and Family | $457.66 | $496.90 | +$39.24 | +$1,020.24 | 8.57% |
| Basic, Self Only | $133.77 | $145.46 | +$11.69 | +$303.94 | 8.74% |
| Basic, Self Plus One | $319.25 | $350.48 | +$31.23 | +$811.98 | 9.78% |
| Basic, Self and Family | $356.86 | $387.54 | +$30.68 | +$797.68 | 8.60% |
Source: OPM's 2026 and 2027 FEHB fee-for-service premium rate files. Biweekly enrollee share for non-postal employees. Yearly increase is the per-paycheck increase times 26.
All six rose less than the 10.9% program average. Other plans rose far more, and some did not rise at all. Our plan-by-plan comparison covers 17 nationwide options.
The 2027 Pay Cut by Grade
The premium increase is the same number of dollars at every grade. Against a frozen salary, that makes it a larger percentage for lower grades.
| Grade (step 5, Rest of U.S.) | 2026 salary (used for the 2027 pay-plan scenario) | Standard family: lost per year | Share of gross pay | Premium increase as % of gross pay, rounded up | Basic self only: lost per year | Share of gross pay | Premium increase as % of gross pay, rounded up |
|---|---|---|---|---|---|---|---|
| GS-5 | $46,167 | $1,020.24 | 2.21% | 2.3% | $303.94 | 0.66% | 0.7% |
| GS-7 | $57,188 | $1,020.24 | 1.78% | 1.8% | $303.94 | 0.53% | 0.6% |
| GS-9 | $69,954 | $1,020.24 | 1.46% | 1.5% | $303.94 | 0.43% | 0.5% |
| GS-11 | $84,638 | $1,020.24 | 1.21% | 1.3% | $303.94 | 0.36% | 0.4% |
| GS-12 | $101,443 | $1,020.24 | 1.01% | 1.1% | $303.94 | 0.30% | 0.3% |
| GS-13 | $120,629 | $1,020.24 | 0.85% | 0.9% | $303.94 | 0.25% | 0.3% |
| GS-14 | $142,549 | $1,020.24 | 0.72% | 0.8% | $303.94 | 0.21% | 0.3% |
FedTools 2027 analysis. Salaries are OPM's 2026 Rest of U.S. rates (17.06% locality), which carry into 2027 under the pay plan. Share of gross pay is the yearly premium increase divided by annual salary. The last column is that share rounded up to the next tenth of a percent. It is a gross ratio, not a net-pay break-even figure. Assumes no step increase or promotion in 2027, the same plan and enrollment type, and 26 pay periods.
For a GS-5 step 5 with Standard family coverage, the premium increase equals 2.3% of gross pay. For a GS-12 step 5 it is 1.1%. Those rounded figures are not a net-pay break-even: retirement contributions come out of a raise, which can push the raise you would need above the unrounded ratio. The raise for 2026 was 1.0%.
A within-grade step increase during 2027 would offset part of this for employees who are due one.
What it costs in take-home pay
Unless you filed a waiver, your FEHB premium is deducted before federal income tax and before any Social Security and Medicare tax you pay on those wages. That is premium conversion, under 5 CFR part 892. A higher premium therefore lowers your taxes a little, and the take-home loss is smaller than the premium increase.
| Federal bracket | Take-home loss on a $1,020.24 increase |
|---|---|
| 12% | about $820 |
| 22% | about $718 |
FedTools calculation: the premium increase times (1 minus the bracket rate minus 7.65% for Social Security and Medicare). State income tax is not included. Assumes a Social Security-covered employee with wages under the $184,500 wage base and no Additional Medicare Tax. CSRS employees who do not pay Social Security tax save less. Illustrative.
Retirees do not get premium conversion.
What Else Changes in January 2027, and What Doesn't
| Item | 2027 status as of October 4, 2026 |
|---|---|
| GS base and locality pay | 0% under the pay plan |
| Law enforcement special rates | +3.8% |
| FEHB enrollee share | +10.9% on average. Blue Cross Standard and Basic +8.6% to +9.8% |
| PSHB enrollee share | +8.2% on average |
| Dental and vision (FEDVIP) | +1.0% and +1.6% on average |
| FERS deduction | Same rate. Same dollars while pay is frozen |
| Social Security wage base | Not yet announced |
| TSP contribution limit | Not yet announced |
For regular employees, FERS contributions stay at 0.8%, 3.1% or 4.4% of basic pay, depending on when you were hired.
What You Can Do About It
Open Season runs November 9 through December 14, 2026. A plan change takes effect January 10, 2027 for most non-postal employees.
Premium is one part of what a plan costs you. Moving from Blue Cross Standard family to Basic family lowers the 2027 premium by $109.36 a paycheck ($496.90 against $387.54). The two options treat out-of-network care differently, so read both brochures and check how you use your plan before you switch.
See Your Own Numbers
The free Federal Take-Home Pay Calculator takes your GS grade, step and locality and shows your current take-home pay per paycheck. Enter your plan's 2027 per-paycheck premium in its FEHB premium field to estimate the effect. The calculator uses 2026 pay tables and tax rules. The current 2027 pay plan would keep GS base and locality rates the same, subject to the final pay rules. The FEHB Calculator shows premium costs by plan and enrollment type.
Frequently Asked Questions
Is the 2027 federal pay freeze final?
Not until the executive order that sets 2027 pay rates, which normally comes in December. The President's August 26, 2026 pay plan holds GS base and locality pay at 2026 rates. The stopgap funding law through December 11 contains no GS raise. Congress would have to enact a percentage in law to change the outcome.
Will my FEHB premium go up 10.9% in 2027?
Probably not exactly. The 10.9% figure is OPM's average increase in the enrollee share across all FEHB plans. Blue Cross Standard and Basic rose between 8.6% and 9.8% depending on enrollment type. Check your own plan's 2027 rate.
How much more will Blue Cross Standard family cost in 2027?
It costs $39.24 more per paycheck, or $1,020.24 more a year. The enrollee share for non-postal employees goes from $457.66 to $496.90 every two weeks.
What does the premium increase equal as a pay cut?
With pay frozen, the Blue Cross Standard family increase equals 2.21% of gross pay at GS-5 step 5 in the Rest of U.S. locality, 1.01% at GS-12 step 5 and 0.72% at GS-14 step 5. The dollar amount is the same at every grade, so lower grades lose a larger share.
What raise would I have needed to break even?
For Blue Cross Standard family coverage, the premium increase equals 2.3% of gross pay at GS-5 step 5, 1.1% at GS-12 step 5 and 0.8% at GS-14 step 5, rounded up to the tenth of a percent. These are gross ratios, not a net-pay break-even: retirement contributions come out of a raise, which can push the raise you would need above the unrounded ratio. The raise for 2026 was 1.0%.
Does premium conversion reduce the hit?
Yes, unless you waived premium conversion. Your FEHB share is deducted before federal income tax and before any Social Security and Medicare tax you pay on those wages. For an employee who pays the full 7.65% on wages under the Social Security wage base, with no Additional Medicare Tax, a $1,020.24 premium increase costs about $820 in take-home pay in the 12% bracket and about $718 in the 22% bracket, before state tax. Retirees do not get premium conversion.
Will my FERS deduction go up in 2027?
No. The FERS employee contribution rate is set by statute at 0.8%, 3.1% or 4.4% of basic pay for regular employees, depending on hire date. With pay frozen, the dollar amount does not change.
Does this apply to postal employees or law enforcement?
No. Postal employees are in PSHB, which has different rates and an 8.2% average enrollee increase. Law enforcement personnel receive a separate 3.8% pay increase, so their result is different.
Related Resources
- Federal Take-Home Pay Calculator: Take-home pay by grade, step and locality.
- FEHB Calculator: Premium cost by plan and enrollment type.
- Why the Government's Share of Your FEHB Premium Dropped: 17 nationwide plan options, 2026 against 2027.
- What Still Increases Under the 2027 Pay Freeze: Step increases, promotions and other raises.
- FEHB 2027 Premiums Tracker: What OPM has confirmed.
Sources: House Document 119-189, alternative pay plan (August 26, 2026); OPM, Federal Benefits Open Season Highlights, 2027 Plan Year; OPM 2027 fee-for-service premium rate file and 2026 rate file; OPM Salary Table 2026-RUS; 5 CFR part 892 (premium conversion); Public Law 119-103; H.R. 7480 (FAIR Act).