Federal pay is one of those things that sounds simple (“I get a raise”) but gets confusing fast once you mix in GS steps, locality pay, and the annual “will it happen?” news cycle.
This guide breaks down what we know (and don’t know yet) about the federal pay increase 2026, how to estimate your GS pay raise percentage, and how to turn a headline number into real dollars you can plan around.
2026 federal pay raise: what we know right now (and what we don’t)
As of today, the official 2026 federal pay raise is not final. That’s normal.
Here’s why: the annual pay raise usually becomes “real” when the President signs an executive order (or Congress passes a law) that sets the across-the-board raise and the locality pay amounts. Those updated tables are then published by OPM.
- The official pay tables live at: OPM Pay Tables (Salaries & Wages)
- General federal pay policy info: OPM.gov
What you will see throughout the year are:
- Proposals (from the President’s budget, lawmakers, or advocacy groups)
- News coverage and “expected” ranges
- Early estimates that may change
For ongoing updates, these outlets track the process closely:
Helpful mindset: until OPM posts the 2026 tables, treat any number as a planning estimate, not a promise.
The basics: how a federal pay increase really works (GS pay raise percentage + locality)
Most GS employees don’t get one single raise. They get a mix of:
Across-the-board increase (base pay)
This is the “headline” number you hear, like “a 4.5% raise.” It applies to base pay.
Locality pay adjustment (where you work)
Locality pay is added on top of base pay and varies by area. Two people with the same GS grade and step can earn different salaries because they work in different places.
OPM explains the overall pay system here: OPM Salaries & Wages
Your step increase (within-grade increase)
This is separate from the annual pay raise. If you’re due for a step increase, you could see a bigger jump in the same year.
Key point: when people talk about the GS pay raise percentage, they usually mean the annual across-the-board + locality changes, not your step increase.
How to estimate your 2026 federal pay increase (simple math you can do today)
Even before the 2026 tables come out, you can make a solid estimate.
Step 1: Find your current salary on OPM’s pay tables
Go to: OPM Pay Tables
Pick your system (most people are GS) and your locality area.
Step 2: Use a “placeholder” raise percentage
Because 2026 isn’t final yet, pick a planning number (example only). Many employees run scenarios like:
- Low estimate: 2%
- Mid estimate: 3.5%
- High estimate: 5%
Step 3: Multiply your current salary by that percentage
Example: If your current salary is $78,000 and you plan for 3.5%:
- $78,000 × 0.035 = $2,730 more per year (gross)
- $2,730 ÷ 26 pay periods = about $105 more per paycheck (gross)
That’s the clean “headline” math. Your real check will be lower after taxes, retirement, and insurance.
Real examples: what the federal pay increase 2026 could look like in dollars
Let’s use realistic, easy math so you can picture it. These examples show gross pay changes (before deductions).
To keep things simple, I’ll use a few common salaries and a few possible raise rates. You can swap in your own number.
Example A: Early-career GS employee
Say you earn $52,000 today.
- If the raise is 2%: $52,000 × 0.02 = $1,040/year (~$40/paycheck)
- If the raise is 3.5%: $52,000 × 0.035 = $1,820/year (~$70/paycheck)
- If the raise is 5%: $52,000 × 0.05 = $2,600/year (~$100/paycheck)
Example B: Mid-career GS employee
Say you earn $86,000 today.
- 2%: $1,720/year (~$66/paycheck)
- 3.5%: $3,010/year (~$116/paycheck)
- 5%: $4,300/year (~$165/paycheck)
Example C: Senior GS employee
Say you earn $132,000 today.
- 2%: $2,640/year (~$102/paycheck)
- 3.5%: $4,620/year (~$178/paycheck)
- 5%: $6,600/year (~$254/paycheck)
Quick reminder: if you’re also getting a step increase in 2026, you may see more than these amounts.
Second angle: two employees, same grade, different outcomes (locality + steps change everything)
Here’s the part that trips people up: two people can both hear “the 2026 raise is X%” and still see different results.
Scenario 1: Same GS grade/step, different locality areas
- Alex and Jordan are both GS employees at the same grade and step.
- Alex works in a higher locality pay area.
- Jordan works in a lower locality pay area.
If the across-the-board increase is the same, Alex still may see a bigger dollar raise because Alex’s salary is higher to start with.
Same percentage + higher starting pay = bigger dollar change.
Scenario 2: One person gets a step increase, the other doesn’t
- Taylor is due for a within-grade step increase in 2026.
- Morgan is not due for a step increase.
Even if both get the same annual raise, Taylor’s total increase could be much larger.
If you’re not sure when your next step increase is due, ask your HR office or check your eOPF/personnel records.
“Why didn’t my paycheck go up by the GS pay raise percentage?” (common misconceptions)
This is where frustration happens. Here are the big misunderstandings I see every year.
Misconception: “If the raise is 4%, my take-home pay will go up 4%”
Not usually.
Your gross pay might rise about that much, but your take-home can be pulled down by:
- Higher FEHB health premiums (some years)
- Higher dental/vision premiums (if you have them)
- Changes in tax withholding
- TSP contribution increases (if you set them to auto-increase)
- FERS pension contributions (for newer employees, this is a big one)
If you want to review benefits basics, see our benefits guide.
Misconception: “Everyone gets the same raise”
Not exactly.
The annual raise can be a mix of:
- A general increase
- Locality adjustments that vary by area
So the GS pay raise percentage can effectively differ by location.
Misconception: “My step increase is part of the annual raise”
It’s separate. You can get:
- Annual raise only
- Step increase only
- Both in the same year (nice)
- Neither (less common, but possible depending on timing and policy)
How to turn the 2026 federal pay increase into a smarter plan (simple how-to)
A raise is great, but it’s even better when you use it on purpose.
Check your current deductions before the raise hits
Pull up your latest LES and list your big items:
- TSP (traditional and/or Roth)
- FEHB
- FEGLI (if you have it)
- Taxes
- FERS (pension) deductions
If you’re a military retiree working federal service (or a Guard/Reserve member), you may also be juggling military pay and benefits. For military pay and LES help, these are solid official sources:
Decide where your “new money” will go
Here are three simple options (you can mix them):
Boost your TSP by 1% (or more)
A small bump often won’t hurt your monthly budget much, but it adds up.
Example: If you make $86,000 and raise your TSP by 1%, that’s about:
- $860/year
- ~$33 per biweekly paycheck (before tax effects)
If you’re still building your emergency fund, you can do that first. But if you’re not getting the full match, that’s usually the first priority.
Build a 1-month emergency fund
Try to save one month of “must pay” bills (rent/mortgage, food, utilities, car, insurance). Even $50–$100 per paycheck moves you forward.
Attack high-interest debt
Credit cards at 18%–29% interest can erase the value of a raise fast.
If you’re working toward PSLF, don’t guess—verify
Many federal employees are also managing student loans and aiming for Public Service Loan Forgiveness (PSLF). A higher salary can change your monthly payment under income-driven repayment plans.
Use the official site:
Tip: If you’re close to PSLF, a pay raise might increase your payment, but it can still be worth it because forgiveness is based on qualifying payments, not the amount forgiven.
Where to watch for the official 2026 numbers (so you’re not stuck with rumors)
When the raise becomes official, you’ll see it reflected in:
- New published pay tables at OPM: OPM Pay Tables
- News coverage explaining the final percentage and timing
These sites track the details closely:
And if you want a broader view of how federal pay compares and how policy changes move through government, OPM.gov is the best “source of truth” for the final tables.
Practical checklist: what to do when the 2026 GS pay tables drop
When OPM posts the 2026 tables, here’s the quick routine I recommend:
Confirm your 2026 salary on the correct table
- GS vs other pay system (most are GS)
- Correct locality area
- Correct grade and step
Use: OPM Pay Tables
Estimate your new net pay (not just gross pay)
- Start with the gross increase
- Subtract rough taxes (your marginal rate)
- Consider benefit premium changes (FEHB open season choices matter)
Decide if you want to adjust TSP contributions
Even a 1% change can be meaningful over time.
If you want more help with federal pay basics, see our federal pay info.
Bottom Line: key takeaways on the federal pay increase 2026
- The federal pay increase 2026 is not final until it’s set by law or executive action and published by OPM.
- Your real raise depends on the mix of across-the-board pay and locality pay, plus whether you also get a step increase.
- A simple planning estimate is: current salary × expected raise % (then divide by 26 for a rough per-paycheck number).
- Don’t expect your take-home pay to rise by the same GS pay raise percentage—benefits, taxes, and retirement deductions can change the result.
- When the 2026 tables post on OPM Pay Tables, confirm your grade/step/locality, then decide how to use the extra money (TSP, emergency fund, debt, or student loans).