Federal employees 2026 pay hike: President Donald Trump enacted an executive order on December 18 that confirms a 1% salary increase for the majority of federal civilian employees in 2026, representing the least significant adjustment since 2021.
This action is in line with an alternative pay proposal that Trump released in early August, which similarly recommended a uniform 1% raise for most civilian employees in 2026.
Pay tables released
The White House has released salary tables for various federal employee pay structures. These tables outline a schedule for “Locality-Based Comparability Payments.” However, it is important to note that the executive order does not provide for locality increases in 2026.
The federal pay increase is set to officially commence during the first complete pay period following January 1, 2026.
While the proposed salary increase for federal employees is modest, it at least provides a slight wage enhancement instead of a freeze, following the extended government shutdown earlier this year. The extensive layoffs within federal operations have resulted in hundreds of thousands of employees losing their positions, and those who remain are also facing pressure from the potential for additional cuts throughout the year.
The pay increase does not keep pace with inflation rates and the recent rise in the cost of living. For instance, average costs for premiums under the Federal Employees Health Benefits Program are projected to rise by over 12% in the coming year.
{{/usCountry}}The pay increase does not keep pace with inflation rates and the recent rise in the cost of living. For instance, average costs for premiums under the Federal Employees Health Benefits Program are projected to rise by over 12% in the coming year.
{{/usCountry}}Also Read: Who will receive Social Security payment on December 24? Check eligibility and requirements
Will all federal employees be granted a 1% pay increase?
No, not every federal employee will be granted a 1% pay increase in 2026. Members of the armed forces are set to receive a 3.8% raise, while certain federal law enforcement personnel may also be eligible for a hike of up to 3.8% in 2026.
The executive order does not clarify which civilian law enforcement personnel are entitled to receive the full increase of up to 3.8%.
As reported by the AFGE, federal salaries are, on average, still 27% lower than the compensation offered for comparable positions in the private sector, resulting in challenges with hiring and retention, persistent staffing shortages, and extensive outsourcing.