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A Pay Raise of 1% Has Been Finalized for Federal Workers in 2026

A new Executive Order signed by the president has now reassured federal workers that they can expect a 1% pay raise in 2026. The government’s offer of a pay raise will apply to federal civilian personnel across the board and marks the smallest annual adjustment since 2021. The raise applies entirely to basic pay, with no changes to locality pay rates, adding a uniform, unbiased addition to expected wages in the coming year. In addition to the 1 raise for the federal workforce in 2026, federal law enforcement officers may be eligible for an additional increase as well. 

2026 federal pay raise

A new executive order has promised a 1% federal pay raise in 2026, with a few minor additions for federal law enforcement and military workers. (Image: Freepik)

What Do We Know About the 2026 Federal Pay Raise Strategy?

In 2025, a 2% average pay raise was finalized in January, with certain variations by locality, ranging from 1.88 to 2.35% and marking the smallest raise under the previous administration. The largest increase was provided in 2024, with a 5.2% hike that was the biggest since 1980. Now, the federal workforce can expect a 1% raise in their base pay in 2026, with no additional locality pay adjustments. 

The increase will take effect in the first full pay period that begins on or after January 1, 2026. This will apply uniformly to the majority of civilian federal employees under the General Schedule, Foreign Operations, and other statutory pay systems. 

Previous budget proposals had suggested a potential pay freeze, but the administration proposed a 1% hike in August, debating the opinions available to give workers at least a small boost in pay for their efforts. Congress has not enforced any additional legislation to override the executive order, but it may still be able to do so through the general appropriations bill expected this year. 

Federal Law Enforcement and Military Pay Raises for 2026

In addition to the 2026 1% federal pay raise for employees, federal law enforcement officers may qualify for an additional 2.8% increase. This will bring their total to 3.8% for select employees. Those eligible for the 3.8% raise will be identified and notified by the Office of Personnel Management (OPM), led by Director Scott Kupor. 

The pay raise for law enforcement officers aligns with the military’s base pay raise, which has also been set at 3.8%. 

What Does This Mean for the Federal Workforce?

While the proposed government pay raise for federal workers is modest, it does offer workers a slight pay increase rather than freezing it. After the extended government shutdown this year, the conversation around pay has been considerably strained, even if some workers were offered bonuses in the aftermath of the shutdown. The large-scale layoffs across federal operations have resulted in hundreds of thousands of workers losing their jobs, and those who were left also remain strained by the possibility of additional cuts this year.

The modest 2026 federal pay raise may challenge retention and recruitment efforts for agencies in the future, particularly when paired with the job instability that has been witnessed this year. The pay increase falls short of inflation rates and recent cost-of-living increases. For example, average premium payments in the Federal Employees Health Benefits Program for federal employees are expected to increase more than 12% next year. 

More Changes Are Expected Across the Federal Workforce in 2026

The federal workforce has witnessed a considerable number of changes this year, which are only expected to continue to reshape its operations in the coming year. Many agencies lost their union and collective bargaining rights this year, and while government forces are working on a bill to restore them, there is uncertainty about the fate of the bill. 

On a more optimistic note, the OPM is now set to oversee a new US Tech Force program, providing early-career talent in technology and AI with the opportunity to work and learn directly from the government. The program is expected to launch in the first quarter of 2026, operating in partnership with private sector firms to nurture and share talent. 

According to the Pew Research Center, the US president has signed 221 Executive Orders this year alone, more than the 220 signed during the entirety of his last term between 2017 and 2021. Along with the pay hike for federal forces, the administration also released an Executive Order announcing the temporary closure of all federal agencies for a day before and after Christmas this year, barring exceptions made by agency heads. More such orders are expected in 2026, reshaping how the federal workforce and the country are managed and operated.

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Anuradha Mukherjee
Anuradha Mukherjee is a writer for The HR Digest. With a background in psychology and experience working with people and purpose, she enjoys sharing her insights into the many ways the world is evolving today. Whether starting a dialogue on technology or the technicalities of work culture, she hopes to contribute to each discussion with a patient pause and an ear listening for signs of global change.

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