Federal Pay Raise 2026 — How Much Are Federal Employees Getting?
Key Facts
- Federal civilian raise: 3.5% average — 2.5% base + 1% locality pay adjustment
- Military raise: 4.5% under the National Defense Authorization Act
- Current inflation rate: 4.2% year over year (May 2026)
- Average private sector raise: 3.5% — in line with federal workers
- June 2026 jobs added: 57,000 — well below the 115,000 forecast
Federal employees across the United States received a pay increase in 2026 as part of the annual federal pay adjustment. If you work for the federal government — whether as a General Schedule employee, in the military, or as a postal worker — here is exactly what changed and what it means for your paycheck.
What Is the Federal Pay Raise for 2026?
Federal civilian employees on the General Schedule received an average pay increase of 3.5% for 2026. The increase is made up of a 2.5% across-the-board base pay raise and an additional 1% average locality pay adjustment. The exact amount depends on your GS grade, step, and the locality pay area you work in. Employees in high cost-of-living areas like San Francisco, New York and Washington DC receive higher locality pay adjustments than those in lower cost areas.
Military Pay Raise 2026
Military service members received a 4.5% pay raise for 2026 under the National Defense Authorization Act. This applies to all active duty, reserve and National Guard members. It is the second consecutive year of above-average military pay raises following a 5.2% increase in 2025.
Is a 3.5% Raise Keeping Up with Inflation?
Not quite. Inflation in May 2026 rose 4.2% year over year while hourly wages for the average private worker grew by only 3.4%. For federal employees, a 3.5% raise is better than the private sector average but still slightly below the current rate of inflation. In real terms, a 3.5% pay raise when inflation is running above 4% means your purchasing power is still declining slightly — you can buy a little less with your paycheck this year than last year despite the nominal increase.
2026 Pay Raise vs. Inflation — At a Glance
What Does 3.5% Actually Mean for Your Paycheck?
The impact depends entirely on your current salary. Here are some quick examples based on common federal salary levels:
- GS-7 Step 1 (earning $46,696/year): +$1,634/year — around $136/month or $31/week
- GS-12 Step 5 (earning $89,054/year): +$3,117/year — around $260/month or $60/week
- GS-15 Step 10: increase capped at the Executive Schedule Level IV ceiling
Why This Matters Beyond the Government
US employers overall are planning 3.5% average salary increase budgets for 2026 — in line with the federal pay adjustment. The federal raise effectively sets a benchmark that private sector employers often reference when setting their own salary budgets. If your employer is offering less than 3.5%, you are falling behind the market average.
What If Your Employer Is Not Giving You a Raise?
Job growth in June 2026 came in at just 57,000 — well below the 115,000 forecast — meaning the labour market is cooling and employers have less pressure to compete on pay. That makes it more important to make the case for your own raise proactively. Check our guide on how to ask for a raise to build your case with data.
See What a 3.5% Raise Means for You
Enter your current salary into our free pay raise calculator to see exactly what a 3.5% increase adds to your weekly, monthly and annual take-home pay.
Use the Pay Raise Calculator →