Federal Employee Pay Raise 2027: Latest Updates, Pay Freeze and Salary Changes
Will federal employees receive a pay raise in 2027? The latest official presidential pay plan calls for a 0% increase in General Schedule (GS) base and locality pay for most civilian federal employees. However, eligible federal law enforcement personnel are expected to receive a separate 3.8% special salary rate increase. Congress is also considering proposals for a broader pay increase, so the final 2027 outcome could still change.
Quick Answer: Federal Employee Pay Raise 2027
The planned 2027 federal civilian pay raise is 0% for most GS employees. President Donald Trump’s August 26, 2026 alternative pay plan freezes base and locality pay at 2026 levels. A separate 3.8% increase is planned for eligible federal law enforcement personnel through OPM special salary rates.
- Most civilian GS employees: 0% planned increase.
- Eligible federal law enforcement: 3.8% planned special-rate increase.
- FAIR Act proposal: 4.1% average increase.
- Final status: Congressional action or later implementation decisions could change the result.
What Is the Latest 2027 Federal Pay Raise Announcement?
On August 26, 2026, President Trump transmitted an alternative pay plan to Congress addressing federal civilian compensation for January 2027.
The document states that GS base pay and locality pay will remain at 2026 rates under the president’s alternative plan.
This means a regular GS employee would not receive an across-the-board January salary increase solely because the calendar year changes.
The plan cites federal budget constraints and the administration’s view that larger statutory adjustments would be inappropriate.
However, Congress has the authority to legislate a different pay adjustment. Therefore, the alternative pay plan should not be confused with a guarantee that no subsequent action can occur.
Official source: 2027 Alternative Pay Plan — U.S. Government Publishing Office (PDF).
Federal Employee Pay Raise 2027: Who Gets What?
| Employee group | Planned or proposed raise | Important detail |
|---|---|---|
| Most GS civilian employees | 0% | Base and locality rates planned to remain at 2026 levels. |
| Eligible federal law enforcement personnel | 3.8% | Special-rate increases directed through OPM; eligibility depends on the covered position. |
| Federal employees under the FAIR Act proposal | 4.1% average | Legislative proposal, not an approved nationwide raise. |
| Military service members | 5%–7% proposed | Separate military pay proposal; not the GS civilian adjustment. |
Employees under other pay systems, including some wage-grade, special-rate, and agency-specific schedules, should consult the rules for their particular position.
Will Federal Employees Get a 4.1% Raise in 2027?
A 4.1% raise has been proposed through the Federal Adjustment of Income Rates Act, commonly called the FAIR Act.
Introduced in February 2026, the proposal would provide:
- 3.1% across-the-board base pay increase.
- 1% average locality pay increase.
- 4.1% average combined pay adjustment.
The proposed increase is supported by lawmakers who argue that federal salaries should better reflect rising living costs and the need to recruit and retain skilled employees.
The 4.1% FAIR Act figure is a legislative proposal. It is not the currently planned 2027 GS pay adjustment and should not be shown as an approved raise.
Official reference: Senator Brian Schatz — FAIR Act Announcement.
Why Are Federal Law Enforcement Employees Getting 3.8%?
The president’s alternative pay plan separately directs OPM to use special salary rate authorities to increase compensation for eligible law enforcement personnel.
OPM has published guidance explaining that special salary rates may be established to address significant recruitment or retention challenges.
These increases are not necessarily a general pay raise for every employee working at an agency that performs law enforcement functions.
Eligibility depends on the specific position, pay system, and OPM’s implementation rules.
Official reference: OPM — 2027 Special Rates for Certain Law Enforcement Personnel.
2027 Federal Pay Raise Calculator: Salary Examples
These examples show the annual salary difference under a 0%, 3.8%, or 4.1% increase.
| 2026 annual salary | 2027 with 0% | 2027 with 3.8% | 2027 with 4.1% |
|---|---|---|---|
| $40,000 | $40,000 | $41,520 | $41,640 |
| $50,000 | $50,000 | $51,900 | $52,050 |
| $60,000 | $60,000 | $62,280 | $62,460 |
| $75,000 | $75,000 | $77,850 | $78,075 |
| $90,000 | $90,000 | $93,420 | $93,690 |
| $100,000 | $100,000 | $103,800 | $104,100 |
| $120,000 | $120,000 | $124,560 | $124,920 |
Example: An employee earning $75,000 annually would remain at $75,000 under a 0% general raise. A hypothetical 3.8% increase would add $2,850 per year, while a hypothetical 4.1% increase would add $3,075.
The table is for comparison only. The 3.8% special law enforcement adjustment may operate through specific special salary tables, and the FAIR Act’s 4.1% is an average, not necessarily an identical percentage for every locality.
How to Calculate Your Possible 2027 Pay Increase
For a simple percentage comparison:
New annual salary = Current annual salary × (1 + Raise percentage ÷ 100)
Annual increase = New annual salary − Current annual salary
For example, a $65,000 salary with a hypothetical 3.8% increase becomes:
$65,000 × 1.038 = $67,470
That is an annual increase of $2,470 before taxes and deductions.
Actual GS pay is governed by published grade, step, locality, and applicable special-rate tables rather than a generic percentage calculator.
Will GS Locality Pay Increase in 2027?
Under the August 2026 presidential alternative pay plan, GS locality rates would remain at their 2026 levels.
Locality pay is the geographically based adjustment applied to many GS positions. It reflects differences in nonfederal pay across designated geographic areas.
For example, employees in Washington, D.C., New York, and San Francisco may receive different locality rates even when they share the same GS grade and step.
However, the current 2027 alternative plan does not provide a general locality percentage increase.
Employees should use OPM’s published salary tables to determine the applicable rate for their locality.
Does a 0% Pay Raise Mean Your Salary Cannot Increase?
No. An across-the-board pay freeze does not automatically prohibit every individual salary increase.
Depending on applicable rules, employees may still receive:
- Within-grade step increases.
- Promotions to higher grades.
- Approved special salary rates.
- Performance-based awards or other authorized payments.
- Pay changes associated with reassignment or other personnel actions.
For example, a GS employee who qualifies for a within-grade increase may move to a higher step even if the general GS salary table remains unchanged.
OPM explains that the General Schedule contains 15 grades and 10 steps per grade, with within-grade increases subject to eligibility and waiting-period rules.
Official source: OPM — General Schedule Pay System.
How Does the 2027 Proposal Compare With Previous Raises?
| Year | General civilian federal pay adjustment |
|---|---|
| 2024 | 5.2% average |
| 2025 | 2.0% average |
| 2026 | 1.0% general GS base increase; no general locality increase |
| 2027 | 0% under the presidential alternative pay plan; subject to possible changes |
The trend shows smaller general pay adjustments since 2024. However, past increases do not determine what Congress or the administration will ultimately implement for 2027.
When Will the Final 2027 Federal Pay Tables Be Available?
OPM publishes official General Schedule salary tables, including locality pay schedules.
Employees should check the official OPM salary tables when the 2027 rates are finalized and published.
Under normal federal pay-setting procedures, annual adjustments generally become effective at the start of the first applicable pay period beginning on or after January 1.
Do not assume that a calendar-year announcement immediately changes your next paycheck.
Check Official OPM Pay TablesWhat Should Federal Employees Do Before January 2027?
For budgeting purposes, the most cautious approach is to plan around the currently announced 0% general GS increase until a different adjustment is officially authorized.
- Review your current GS grade, step, and locality rate.
- Check whether your position uses a special salary rate.
- Do not budget around the proposed 4.1% FAIR Act raise as if it were approved.
- Monitor OPM’s official 2027 salary tables.
- Check your agency’s payroll notice for the effective date of any adjustment.
- Review changes to insurance premiums, retirement contributions, and other payroll deductions separately.
Even if gross base salary remains unchanged, net take-home pay may change because of deductions, taxes, or benefit elections.
Quick Answers: Federal Employee Pay Raise 2027
| Question | Answer |
|---|---|
| Is there a federal employee pay raise in 2027? | The presidential alternative plan calls for 0% for most GS civilian employees. |
| Is the 2027 pay freeze official? | The president formally submitted the alternative pay plan, but Congress could still authorize a different adjustment. |
| Who may receive 3.8%? | Eligible federal law enforcement personnel under OPM special salary rate authorities. |
| Is the 4.1% FAIR Act approved? | No. It is a legislative proposal. |
| Will locality pay increase? | Not under the announced 2027 alternative pay plan. |
| Can employees still get step increases? | Yes, if eligible under applicable rules. |
| When will the 2027 GS tables be published? | Check OPM for official publication and implementation details. |
| Does this apply to military pay? | No. Military compensation follows a separate pay-setting process. |
Official Sources
- White House — August 26, 2026 Alternative Pay Plan
- OPM — 2027 Federal Law Enforcement Special Rates
- OPM — Federal Salary Tables
- OPM — General Schedule Pay System
- U.S. Senate — FAIR Act 4.1% Proposal
Bottom Line
As of October 13, 2026, the presidential plan for 2027 is a 0% general GS base and locality pay increase, with a separate 3.8% special-rate increase planned for eligible federal law enforcement personnel.
The FAIR Act proposes an average 4.1% increase, but that proposal has not become law. Employees should follow OPM and congressional developments before treating any new salary figure as final.
Last reviewed: October 13, 2026. BillUnpacked is an independent consumer-information website and is not affiliated with OPM or any federal agency. Pay policies and legislation can change. Actual compensation depends on the employee’s grade, step, location, position, and applicable pay authorities.