Federal Employees Receive 1% Pay Raise in 2026, Military Gets 3.8% Increase

President Donald Trump signed an executive order on December 18. It sets a 1% pay increase for most federal civilian employees next year. This is the smallest annual raise since 2021.

The order confirms an alternative pay plan proposed last August. It provides a slight wage boost instead of a freeze. This comes after a major government shutdown caused widespread layoffs.

Pay Tables Published Without Locality Adjustments

The White House has released new federal salary tables. They outline schedules for locality-based payments. However, the order does not grant any locality pay increases for 2026.

The raise takes effect in the first full pay period after January 1. According to Reuters, this modest hike fails to match current inflation rates. It also falls short of covering rising health benefit costs.

Federal employee premiums are projected to jump over 12%. The 1% increase will not offset this financial pressure. It highlights ongoing budget constraints within government operations.

Significant Pay Gap with Private Sector Persists

The raise does little to close a major compensation gap. Reports indicate federal salaries lag the private sector by about 27%. This gap creates serious hiring and retention problems.

Staffing shortages and increased outsourcing are direct results. The American Federation of Government Employees has highlighted these issues. Persistent underfunding affects core government services.

Meanwhile, military personnel will see a much larger adjustment. Armed forces are slated for a 3.8% pay increase in 2026. Certain federal law enforcement may also qualify for the higher raise.

The executive order does not specify which civilian law enforcement qualify. This leaves some uncertainty for those agencies. The disparity between civilian and military raises is notable.

The confirmed federal employees pay raise for 2026 offers minimal relief. It underscores ongoing budgetary pressures and the widening gap with private sector wages.

Thought you’d like to know

Who gets the 1% federal pay raise in 2026?

Most general schedule federal civilian employees will receive the 1% increase. Members of the armed forces and some law enforcement personnel are set for a larger 3.8% raise.

When does the 2026 federal pay increase start?

The raise begins in the first full pay period after January 1, 2026. Updated pay tables have already been released by the administration.

Does the raise include locality pay adjustments?

No. The executive order does not provide for any locality-based pay increases in 2026. The adjustment is a base pay increase only.

How does this raise compare to inflation?

The 1% increase is below current inflation rates. It also will not cover a projected 12% rise in federal employee health benefit premiums next year.

Why is there a different raise for the military?

The decision for a higher 3.8% military raise is based on separate budgetary considerations. It aims to support recruitment and retention in the armed forces.