If you’ve been checking your bank account and waiting for a big jump in your January paycheck, you might want to sit down. The federal pay increase 2026 is officially here. It’s not exactly the windfall many were hoping for. Honestly, for the vast majority of the 2.2 million federal civilian employees, this year feels like a bit of a squeeze.
We’re looking at a 1.0 percent across-the-board base pay increase. That is it. No extra locality pay bump. No complicated math to figure out if your city gets a higher percentage than the "Rest of U.S." category.
It’s the smallest raise we’ve seen in years.
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The Reality of the 1% Raise
President Trump finalized this plan through an Executive Order signed in late December 2025. It follows through on the "alternative pay plan" he sent to Congress back in August. Basically, the administration cited fiscal responsibility as the main reason for keeping the numbers low.
But here’s where it gets frustrating for many. The Federal Employees Pay Comparability Act (FEPCA) actually suggested a much higher number. If the government followed the standard formula, we’d be looking at a 3.3 percent base increase plus a massive locality adjustment. Instead, the "alternative" plan overrode that.
A Stark Contrast to Previous Years
To understand why people are grumbling in the breakrooms, you have to look at where we just came from.
- 2024: 5.2 percent (The biggest in decades)
- 2023: 4.6 percent
- 2022: 2.7 percent
- 2026: 1.0 percent
It’s a sharp drop-off. When you factor in the cost of eggs, rent, and insurance, a one percent raise doesn't even feel like it's keeping the lights on. It’s more of a "staying in place" adjustment than a "moving forward" one.
The Law Enforcement Exception
There is one group of feds who are actually seeing a decent bump. Certain federal law enforcement officers (LEOs) are getting a total federal pay increase 2026 of 3.8 percent.
Why the difference? The administration wants to match the military's pay raise to help with recruitment and retention. It makes sense if you’re trying to keep agents from jumping ship to the private sector or local police departments that pay better.
This 3.8 percent isn't just a flat number for everyone, though. It’s technically the 1.0 percent base raise plus an additional 2.8 percent special rate. OPM released specific tables (L001 through L133) to cover these positions. If you’re a CBP officer or an FBI agent, you’re likely in this group.
Who actually gets the 3.8%?
- Customs and Border Protection (CBP) officers.
- FBI Special Agents.
- U.S. Marshals.
- DEA Agents.
- Certain Secret Service personnel.
If you aren't in one of those "front-line" roles, you’re likely stuck with the 1.0 percent. Even for the LEOs, there’s a catch: the statutory pay cap. If your new salary hits the Level IV Executive Schedule limit ($197,200 for 2026), your raise might be truncated.
Locality Pay is Frozen
This is the part that hurts if you live in a high-cost area like San Francisco, D.C., or New York. Usually, the annual raise is split between a base increase and a locality increase. For 2026, the locality percentages are frozen at 2025 levels.
Think about that for a second.
If you’re a GS-12 in D.C., your locality adjustment stays exactly where it was last year. You only get that 1.0 percent on your base pay. For a GS-12, Step 5 in Washington D.C., that works out to about $869 extra for the entire year. After taxes? You're looking at maybe $25 or $30 more per pay period.
It’s barely enough for a couple of fast-food meals.
What About the Blue-Collar Workforce?
Federal wage system (FWS) employees—the folks doing the trades and labor jobs—aren't left out, but they aren't getting rich either. OPM’s memos confirm that "prevailing rate" employees will see their increases capped at that same 1.0 percent.
There's a "floor" and a "ceiling" here. By law, their raise can't be less than what the GS employees in their area got. Since the GS raise was 1.0 percent, that’s exactly what the FWS folks are getting.
The Retirement and Tax Angle
While the pay raise is small, other numbers are moving. The IRS and OPM shifted a few things for 2026 that actually matter for your take-home pay.
The Thrift Savings Plan (TSP) contribution limit jumped to $24,500. If you're over 50, the catch-up limit is still there too. Also, the Health Care Flexible Spending Account (FSA) carryover limit rose to $680.
These feel like small wins, but if you’re trying to lower your taxable income because your raise was tiny, maxing out your TSP is one of the few levers you can still pull.
Actionable Steps for Federal Employees
You can't change the Executive Order. It’s signed. It’s done. But you can manage the fallout.
Audit your withholdings immediately. With the new pay tables effective January 11, 2026, check your first full February paycheck. Make sure your tax withholding and insurance premiums (which often go up) haven't completely swallowed that 1.0 percent increase.
Look into Special Rates. If you’re in a technical or high-demand field (like IT or cybersecurity), check if your agency has applied for or implemented a "Special Salary Rate" (SSR). Sometimes these bypass the standard GS raise.
Adjust your TSP contributions. If you can afford it, bump your contribution by 1 percent. It offsets the raise on your "liquid" cash, but it builds your long-term wealth while the markets are still moving.
Check the new OPM tables. Don't guess your salary. Go to the OPM website and look at the 2026 Salary Tables for your specific locality. Seeing the exact number helps with budgeting for the rest of the year.
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The 2026 pay cycle is going to be a lean one. Between the 1.0 percent cap and the locality freeze, most feds will need to keep a close eye on their "High-3" calculations and personal budgets until the 2027 cycle begins.