Federal employees across the United States are already looking ahead to 2026 as early projections point to a meaningful increase in General Schedule (GS) pay. For many civil servants, even a few percentage points can significantly affect monthly budgets, retirement planning, and long-term financial stability.
The GS pay scale determines compensation for the majority of the federal civilian workforce, including analysts, engineers, administrative staff, healthcare professionals, and managers. With inflation continuing to pressure household expenses and competition from the private sector remaining strong, pay adjustments for 2026 are shaping up to be an important issue.
While final pay tables have not yet been approved, preliminary estimates suggest that both base pay and locality pay could increase, potentially making the 2026 adjustment one of the more substantial federal raises in recent years.
Overview: GS Pay Scale 2026 (Projected)
| Category | Expected Change |
|---|---|
| Base pay increase | Approximately 4.6% |
| Locality pay increase | Additional 2–3% depending on region |
| Total possible increase | Up to 6–7% in high-cost areas |
| Pay grades covered | GS-1 through GS-15 |
| Expected release of final tables | December 2025 |
Figures are projections and subject to final approval.
How the GS Pay Scale Works?
The General Schedule pay system uses a tiered structure designed to standardize compensation across federal agencies. It consists of 15 grades (GS-1 to GS-15), with each grade containing 10 steps that reward experience, longevity, and performance.
Employees typically move up steps automatically over time, while promotions allow them to advance to higher grades. This structure ensures predictable salary growth for federal workers, unlike many private-sector roles where pay increases may vary widely.
In addition to base pay, most GS employees receive locality pay, which adjusts salaries based on regional cost-of-living differences. This means two employees at the same grade and step may earn significantly different salaries depending on where they work.
Projected GS Pay Increase for 2026
Based on early budget signals and historical pay formulas, analysts expect GS base pay to rise by around 4.6% in 2026. If approved, this would be one of the stronger adjustments seen in the past decade.
Locality pay could add another 2–3% in certain regions, particularly in major metropolitan areas where housing, transportation, and childcare costs remain elevated.
“These projected increases reflect ongoing efforts to keep federal salaries competitive with the private sector while accounting for inflation,” a FedManager spokesperson said. “Locality pay remains essential for employees in high-cost regions.”
If these projections hold, the combined increase could approach 6–7% for some federal workers.
How the Increase Could Affect Different GS Grades?
Lower- and Mid-Level GS Employees
For entry-level and mid-career workers, even a modest percentage increase can provide meaningful relief from rising expenses.
- GS-7 (standard locality):
- Current salary: ~$50,000
- Projected 2026 salary: ~$52,300
- GS-9 (standard locality):
- Estimated increase: ~$2,700 annually
- GS-7 (Washington, D.C. locality):
- Current salary: ~$59,000
- Projected salary: Nearly $62,000
These increases can help offset rising rent, commuting costs, and student loan payments.
Impact on Higher-Grade Federal Employees
Senior federal employees will also see noticeable gains, particularly those in high-cost localities.
- GS-12, Step 5 (standard locality):
- Estimated increase: ~$3,000
- New salary: Close to $100,000
- GS-13 or GS-14 employees in major cities:
- Total compensation could rise by $5,000–$8,000 annually
“Higher-grade employees often feel inflation more acutely because they may not qualify for assistance programs,” noted a federal workforce policy analyst. “Competitive pay is critical to retaining experienced professionals.”
Understanding Locality Pay Adjustments
Locality pay is calculated by the Office of Personnel Management (OPM) using labor market data that compares federal salaries with equivalent private-sector roles in specific geographic areas.
Factors used in determining locality pay include:
- Regional wage surveys
- Employment Cost Index (ECI) data
- Cost-of-living indicators
The goal is to narrow the pay gap between federal and private-sector workers performing similar jobs.
“Locality pay ensures federal employees can maintain a standard of living aligned with their regional economy,” analysts at FederalPay.org explained.
Currently, there are more than 50 locality pay areas nationwide, each with its own adjustment rate.
When Will the 2026 GS Pay Tables Be Finalized?
The GS pay increase follows a predictable annual timeline:
- Budget proposals are reviewed during the fall
- The President finalizes pay recommendations
- OPM publishes official pay tables
Final GS pay tables are typically released in late December, with new rates taking effect in January 2026.
Until then, federal employees are advised to treat projections as estimates rather than guarantees.
Why the 2026 Pay Increase Matters?
The renewed attention on GS pay highlights a broader economic reality: many American households remain financially stretched.
Federal employees face:
- Rising housing costs
- Higher healthcare expenses
- Increased transportation and childcare costs
A competitive pay increase helps:
- Retain experienced staff
- Attract skilled professionals
- Reduce turnover across agencies
“Federal pay raises are about more than numbers they’re about maintaining a capable and motivated workforce,” a public administration expert said.
What Federal Employees Can Do Now?
While waiting for final approval, federal workers may want to:
- Review household budgets
- Plan for retirement contributions
- Adjust savings or debt repayment strategies
A projected increase can offer an opportunity to strengthen financial resilience if used strategically.
FAQs
Is the GS pay increase for 2026 officially approved?
No. The figures discussed are projections. Final approval is expected in December 2025.
How much will GS pay increase in 2026?
Base pay is projected to rise about 4.6%, with locality pay adding another 2–3% in many regions.
Will all GS employees receive the same raise?
Base pay increases apply across grades, but locality pay varies by geographic area.
When will the new pay rates take effect?
If approved, new GS pay rates will begin in January 2026.
Does locality pay count toward retirement benefits?
Yes. Locality pay is included when calculating an employee’s high-3 retirement average.
