Federal employees received a 1% across-the-board pay increase in 2026, making this year’s raise one of the smallest increases in recent years. The bigger change is that locality pay rates were frozen at their 2025 percentages instead of receiving a separate increase.
The new pay tables took effect in January 2026. For most General Schedule employees, this means their basic GS salary went up by 1%, while the locality percentage used to calculate their final salary stayed at the 2025 level.
What the 1% Federal Pay Raise Means
The General Schedule, often called the GS system, covers a large part of the federal civilian workforce. Employees are placed into grades and steps, and their basic pay depends on that grade and step.
For 2026, the government approved a 1% increase in basic pay. This increase applies across the statutory pay systems covered by the January 2026 pay adjustment.
That means an employee’s basic GS rate is higher than it was in 2025. The actual amount added to a paycheck depends on the employee’s grade, step, location, and other pay rules.
The 1% increase is applied to the basic GS rate rather than simply adding 1% to every employee’s final take-home pay. Taxes, retirement contributions, insurance costs, and other deductions can affect the amount an employee actually sees in a paycheck.
What Happened to Locality Pay?
Locality pay is an additional percentage added to basic GS pay based on where a federal employee officially works. The purpose is to account for differences in pay levels between geographic areas.
For 2026, the locality percentages were generally frozen at their 2025 levels. In other words, employees did not receive a separate locality percentage increase on top of the 1% general increase.
However, there is an important detail that can cause confusion.
A frozen locality percentage does not mean the dollar amount of locality pay stays exactly the same. Because the basic GS salary increased by 1%, the dollar amount produced by the same locality percentage can also increase.
For example, if a locality percentage stays at 20%, applying that percentage to a higher basic salary will result in a higher locality-adjusted salary.
A Simple Example of How It Works
OPM’s 2026 pay examples show this calculation in practice. One GS-5, step 1 example had a 2025 basic rate of $34,454. After the 1% increase, the 2026 basic rate became $34,799. The locality-adjusted rate increased from $40,931 to $41,341 while the locality percentage remained 18.80%.
This is an important point for federal employees: “no locality increase” does not mean the final salary will be exactly the same as last year.
| Pay item | 2025 | 2026 change |
|---|---|---|
| Basic GS pay | 2025 rate | Increased by 1% |
| Locality percentage | 2025 percentage | Generally frozen |
| Locality dollar amount | Based on 2025 basic pay | Can rise because basic pay increased |
| Effective year | 2025 | January 2026 |
| Overall standard GS increase | Varies by final locality-adjusted rate | 1% total increase under the standard tables |
The official 2026 tables show that locality percentages differ by geographic area. For example, the Rest of U.S. table uses a 17.06% locality payment, while the Washington-Baltimore-Arlington area uses 33.94%. Both tables show a total increase of 1%.
Why the 2026 Raise Is Different
Federal pay normally includes two major pieces for most GS employees: basic pay and locality pay.
In some previous years, employees received an across-the-board increase along with a change in locality pay. For 2026, the government instead provided the 1% general increase while keeping locality percentages at their existing levels.
That makes the 2026 increase relatively simple to understand, but the impact differs from one employee to another because locality rates vary by location.
An employee in one geographic area can have a very different final salary from someone at the same grade and step in another area.
What This Means for Your Paycheck
The most direct effect is that your gross salary should reflect the 2026 pay table for your grade, step, and location.
However, the amount that actually reaches your bank account will not necessarily increase by exactly 1%.
Your paycheck can be affected by federal and state taxes, retirement contributions, health insurance, flexible spending accounts, life insurance, and other deductions.
So if your salary increased by 1%, your take-home pay could rise by a smaller amount.
Employees should compare their 2025 and 2026 gross pay rather than looking only at the final amount deposited into their bank account.
Your Grade and Step Still Matter
The 1% increase applies across the GS schedule, but employees are not all paid the same amount.
A GS-5 employee and a GS-12 employee, for example, have very different basic salary rates. Even within the same grade, step increases can create differences in pay.
The 2026 pay tables list annual rates for each grade and step. OPM also provides a 2026 GS salary calculator that allows employees to check the applicable rate based on their pay information.
The easiest way to understand your new salary is to check your specific grade, step, and locality rather than relying on a general percentage.
Some Employees May Have Different Pay Rules
The standard 1% GS increase does not mean every federal employee has exactly the same pay arrangement.
Some employees are covered by special salary rates. OPM can establish special rates for certain groups of GS employees when agencies face recruitment or retention problems.
Federal law enforcement employees can also be covered by separate LEO pay tables and special rates. OPM publishes separate 2026 LEO schedules for employees who meet the applicable definition.
This means an employee should use the pay table that applies to their position instead of assuming the standard GS table is always the correct one.
2026 Pay Examples
The actual increase becomes easier to understand when looking at real numbers.
| Example | 2025 Basic Rate | 2026 Basic Rate | Locality Rate |
|---|---|---|---|
| GS-5 Step 1 example | $34,454 | $34,799 | 18.80% |
| 2026 locality-adjusted rate | $40,931 | $41,341 | 18.80% |
This is an official OPM example showing how the same locality percentage can produce a higher final salary after the basic GS rate rises.
The example also shows why employees should not interpret “locality pay frozen” as “locality-adjusted salary frozen.”
When Did the New Pay Rates Take Effect?
The 2026 pay adjustment took effect in January 2026. OPM’s official 2026 salary tables identify the rates as effective January 2026.
Federal payroll systems then applied the new rates according to the applicable pay period and payroll schedule. The National Finance Center also confirmed that it was processing the 2026 federal pay raise under OPM’s guidance.
Employees who want to confirm their current salary should compare their recent earnings statement with the applicable 2026 OPM pay table.
How to Check Your 2026 Salary
Federal employees can check the official 2026 GS tables and identify the table for their geographic area. The table will show the annual salary for each grade and step.
You can also use the official OPM General Schedule salary calculator to determine the applicable 2026 rate.
Official OPM 2026 General Schedule Pay Tables
Official OPM 2026 GS Salary Calculator
When checking the number, make sure you use the correct grade, step, and locality area. If you receive a special rate, use the applicable special-rate schedule instead.
What Federal Employees Should Expect Going Forward
The 2026 increase is already reflected in the official pay tables, so employees do not need to wait for another decision to receive the standard 1% adjustment.
The bigger question for future years is whether federal pay will again include a larger general increase or changes to locality percentages. Those decisions are made separately for each year.
For 2026, the confirmed structure is straightforward: a 1% increase in basic GS pay and no general increase to locality percentages.
The Bottom Line
The 2026 federal pay raise is confirmed at 1% for the General Schedule, while locality pay percentages were generally kept at their 2025 levels.
That does not mean federal employees receive no benefit from locality pay. Locality pay continues to be part of the salary calculation, and the dollar amount can rise because the underlying GS salary increased.
The actual effect on each employee depends on grade, step, location, and whether a special pay rate applies. Taxes and other deductions will also determine how much of the increase reaches the employee’s bank account.
For the most accurate number, federal workers should check their 2026 OPM salary table rather than relying on a general estimate. The official tables provide the grade-by-grade and locality-by-locality rates that apply in 2026.
