Federal Employee Pay Raises
2027 Federal Pay Raise — Projections & Calculator
Plus current 2026 rates (1.7%) and 12-year history.
2026 Pay Raise
1.7%
Average including locality
10-Year Average
2.6%
2017-2026 average raise
Effective Date
Jan
First full pay period of 2026
2027 Federal Pay Raise Scenario Calculator
See how different pay raise percentages would affect your salary
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What About the 2027 Federal Pay Raise?
The 2027 federal employee pay raise has not been officially announced. The President typically proposes the raise in the annual budget (usually released in February), and Congress has until year-end to act.
Key Dates for 2027
- Feb 2026: President's budget proposal
- Sep-Dec 2026: Congressional action
- Jan 2027: Raise takes effect
Factors That Influence the Raise
- Employment Cost Index (ECI) trends
- Inflation and CPI data
- Federal budget outlook
- Congressional priorities
Federal Pay Raise History (2015-2026)
12 years of federal employee pay adjustments
Federal Pay Raise History (2015-2026)
12 years of federal employee pay adjustments
| Year | Pay Raise | Notes |
|---|---|---|
| 2026 | 1.7% | Current yearCurrent |
| 2025 | 2.0% | |
| 2024 | 5.2% | Highest in decades |
| 2023 | 4.6% | |
| 2022 | 2.7% | |
| 2021 | 1.0% | |
| 2020 | 3.1% | |
| 2019 | 1.9% | After partial shutdown |
| 2018 | 1.9% | |
| 2017 | 2.1% | |
| 2016 | 1.3% | |
| 2015 | 1.0% |
Note: Raises shown are average total adjustments including base pay and locality pay changes. Individual locality areas may vary.
How Federal Pay Raises Work
Two Components
- Base Pay Increase: Applied to the GS base pay table, typically tied to the Employment Cost Index (ECI)
- Locality Pay Adjustment: Varies by area to reduce federal-private sector pay gap
The Process
- President proposes raise in annual budget
- Federal Salary Council makes recommendations
- Congress can accept, modify, or reject
- President can issue alternative pay plan
Pay Raise vs. Step Increase: The annual pay raise is separate from Within-Grade Increases (WGIs). Even in a pay freeze, you still advance through steps based on time in service and acceptable performance.
How Pay Raises Affect Your Retirement
Your FERS pension is calculated using your "high-3" salary — the average of your highest 3 consecutive years of basic pay. Every pay raise increases your high-3, which directly increases your lifetime pension.
Example: GS-13 Step 10
+$1,700
Annual raise at 1.7%
High-3 Impact
+$567
Added to high-3 average
Lifetime Pension Boost
+$5,000+
Est. over 20 years retirement
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Federal Pay Raise FAQ
Common questions about federal employee pay raises
What is the 2026 federal employee pay raise?
The 2026 federal employee pay raise is 1.7% on average. This includes a base pay increase of approximately 1.5% plus an average locality pay adjustment of 0.2%. The exact raise varies by locality area.
When do federal employees get their annual pay raise?
Federal pay raises typically take effect in the first full pay period of January each year. The President usually announces the proposed raise in the annual budget, and Congress can modify it through the appropriations process. If Congress doesn't act, the President's alternative pay plan goes into effect.
What is the projected 2027 federal pay raise?
The 2027 federal pay raise has not been officially announced yet. Historically, raises have ranged from 1% to 5.2%. Factors influencing the 2027 raise include inflation rates, the Employment Cost Index (ECI), federal budget conditions, and Congressional priorities. Based on recent trends, analysts expect a raise in the 2-3% range.
How is the federal pay raise calculated?
Federal pay raises have two components: (1) A base pay increase, typically tied to the Employment Cost Index (ECI), and (2) Locality pay adjustments to reduce the gap between federal and private sector pay in specific areas. The President proposes the raise, and Congress can accept, modify, or reject it.
Do all federal employees get the same pay raise?
No. While all GS employees receive the same base pay increase, locality pay adjustments vary. Employees in high cost-of-living areas like San Francisco, New York, and Washington DC may see larger total increases than those in "Rest of U.S." localities. Additionally, some agencies have special pay systems (like the Federal Wage System for blue-collar workers) with different raise mechanisms.
What happens if there's a pay freeze?
During a pay freeze, federal employees do not receive the annual base pay increase or locality pay adjustment. However, they may still receive Within-Grade Increases (WGIs) for advancing to the next step within their grade, as these are based on time in service and performance, not annual adjustments. The last multi-year freeze was 2011-2013.
How does the federal pay raise affect my retirement?
Your FERS pension is based on your "high-3" average salary—the highest 3 consecutive years of basic pay. Pay raises increase your high-3, which directly increases your pension. A 2% raise in your final years can increase your lifetime pension payments by tens of thousands of dollars.
Is the federal pay raise the same as COLA for retirees?
No. The annual pay raise for active employees is separate from the Cost-of-Living Adjustment (COLA) for FERS retirees. COLA is based on the Consumer Price Index (CPI-W) and typically differs from the active employee pay raise. FERS retirees under age 62 do not receive the full COLA—it's reduced by 1% if inflation exceeds 2%.