Honestly, if you were expecting a massive windfall in your bank account this January, the latest news on the federal employee wage increase might feel like a bit of a cold shower. After a few years of relatively beefy adjustments—remember that 5.2% jump back in 2024?—the 2026 update is, well, modest.
Basically, President Trump finalized a 1.0% across-the-board increase for the General Schedule (GS) workforce. It became official via Executive Order in late December 2025. This isn't just a suggestion; it's the law of the land now. For most of the 2.2 million federal civilians, this represents the smallest bump since 2021.
What’s the Catch with Locality Pay?
Here is the part that’s tripping people up. Usually, a pay raise is split into two buckets: the base increase and the locality adjustment. This year? The administration dumped the entire 1.0% into the base pay and effectively froze locality percentages at 2025 levels.
If you work in a high-cost area like San Francisco or D.C., your "locality multiplier" hasn't moved an inch. Your salary still goes up because that 1.0% base increase ripples through the math, but you aren't getting that extra "geographic boost" many were hoping for.
Think of it like this:
If your base pay was $50,000 and your locality was 20%, your total was $60,000.
Now, your base becomes $50,500.
The 20% stays 20%.
Your new total is $60,600.
You’re up $600 for the year. That's about $23 per pay period before taxes.
The "Winners" (Sort Of) in 2026
Not everyone is stuck at the 1% mark. There’s a specific carve-out for law enforcement.
Executive Order 14368 directed the Office of Personnel Management (OPM) to give a bit more love to federal agents and officers. We’re talking about a total 3.8% federal employee wage increase for covered law enforcement personnel. This aligns them with the military pay raise.
Why the difference?
Retention.
The administration is worried about losing seasoned agents to local police departments or private security firms that pay better. This 3.8% is a mix of that 1% base raise plus a special 2.8% "special rate" adjustment.
Who else got a different deal?
- Wildland Firefighters: They see the 1.0% base increase, but many are still watching for long-term legislative fixes to their pay scales.
- Prevailing Rate Employees: If you're a "blue-collar" federal worker under the Federal Wage System (FWS), your raise is generally capped at the GS level for your area.
- Senior Executive Service (SES): Their pay floor moved up to $151,661, but their ceiling is still tethered to the Executive Schedule caps.
The 11 New Locality Areas: A Map That Didn't Shift
The Federal Salary Council spent a lot of time recommending 11 new locality pay areas for 2026. Places like Roanoke, Virginia, and Waco, Texas, were on the list. The goal was to pull these folks out of the "Rest of U.S." (RUS) category and give them a dedicated, higher rate.
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It didn't happen.
Despite the data showing these areas are getting more expensive, the 2026 plan kept the existing locality boundaries. If you live in one of those "almost-new" areas, you're staying in the RUS bucket for now. It’s a bummer for anyone who was counting on that reclassification to help with rising rent or grocery bills.
Inflation vs. The 1% Reality
Let’s be real: 1% doesn't go very far when eggs and insurance are still pricey.
If your health insurance premiums (FEHB) went up by 10% during the last Open Season, that 1% raise might already be gone before you even see it. It’s a "paper raise" for many. Your gross pay is higher, but your net "take-home" might actually be lower if your deductions outpaced the increase.
Practical Steps to Navigate Your 2026 Pay
Stop looking at the annual figure on the OPM charts for a second. That big number is misleading. You need to look at your actual "Earnings and Leave" statement.
- Check your SF-50: The "Notification of Personnel Action" usually hits your digital folder in mid-to-late January. Look at Block 35. That’s your new base rate.
- Audit your deductions: Now is the time to check your TSP (Thrift Savings Plan) contributions. If you got a 1% raise, maybe you can nudge your contribution up by 0.5% or 1%. It’s small, but it keeps your retirement on track.
- Verify your "High-3": If you are within three years of retirement, this 1.0% increase does help your pension calculation. Every dollar added to your basic pay (which includes locality) helps that "High-3" average.
- Law Enforcement Verification: If you’re in a 0081 or 1811 series, ensure your agency has moved you to the new special rate tables (L001 through L133). If your paycheck only shows a 1% jump, someone in HR might have missed the memo.
The pay increase officially kicked in on January 11, 2026, for most agencies. Since we get paid in arrears, you’ll likely see the new amount in the paycheck hitting your account in late January or early February. Don't expect a life-changing sum—expect enough to maybe cover a couple of extra tanks of gas over the course of the year.