Wealthy PotFederal Pay Raise 2027: A Proposed Freeze for Civilians, and What Could Still Change
The 2027 federal pay raise for civilian employees is currently 0%: on August 26, 2026 the President told Congress that "base pay and locality pay for civilian Federal employees will not change from the 2026 rates." That is a proposal, not the final word. The statutory formula would have given a 3.1% across-the-board raise plus locality increases, Congress can still legislate a different number, and the final rates are fixed by executive order, normally in late December. This page sets out what has been proposed, what the law says, and what has actually been decided as of October 4, 2026.
Table of Contents
The Short Answer
| Group | 2027 status (as of Oct 4, 2026) | Proposed or final? |
|---|---|---|
| General Schedule, base pay | 0% under the President's alternative plan; 3.1% under the statutory formula | Proposed |
| Locality pay | Frozen at 2026 percentages under the plan; the formula would have raised it by an average of 20.6% | Proposed |
| Federal law enforcement | 3.8%, through a separate OPM process | Directed, details pending |
| Armed Forces | 7% (E-1 to E-5), 6% (E-6 to O-3), 5% (O-4 and up) | Proposed; Senate bill says 3.6% |
| Other uniformed services | 3.6%, the statutory formula | Proposed |
| 2026 for comparison | 1.0% base, locality frozen | Final (EO 14368) |
Proposed vs. final: nothing in the 2027 column is law yet. Congress is running on a continuing resolution through December 11, 2026, and none of the regular FY2027 spending bills has been enacted. If Congress does not set a figure, the President's plan becomes the raise when the December executive order is signed.
What the President's August Letter Says
Federal law lets the President replace the formula raise with a smaller one if he considers it inappropriate "because of national emergency or serious economic conditions affecting the general welfare." To do that he has to send Congress an alternative plan before September 1. The 2027 letter, dated August 26, 2026 and printed as House Document 119-189, says:
- Civilian base and locality pay: "I have determined that for 2027, base pay and locality pay for civilian Federal employees will not change from the 2026 rates."
- What the formula would have cost: without the plan, "locality pay for the civilian workforce would automatically increase by an average of 20.6 percent, costing $26 billion in the first year alone," on top of "an additional 3.1 percent across-the-board increase for the base General Schedule."
- Law enforcement: OPM "shall use its statutory authority to increase 2027 compensation for law enforcement personnel by 3.8 percent," described as "a separate process" from the pay plan. The letter does not define which positions qualify.
- Military: 7.0% for E-1 to E-5, 6.0% for E-6 to O-3 and 5.0% for O-4 and above, effective January 1, 2027. Uniformed services outside the Armed Forces (such as the Public Health Service and NOAA Corps) get 3.6%.
The 0% is the second freeze-style plan in a row. For 2026 the August 2025 letter set "base pay will increase by 1.0 percent and locality pay increases will be set at zero," and that is exactly what the final executive order delivered.
How the Raise Is Supposed to Be Calculated
The Federal Employees Pay Comparability Act (FEPCA) built two pieces into the law:
- The across-the-board raise (5 U.S.C. 5303). Every General Schedule rate rises by the 12-month change in the Employment Cost Index for private-industry wages and salaries, measured to September of the year before last, minus half a percentage point. For 2027 that window ends in September 2025, when the BLS index was up 3.6%. Take off 0.5 and you get the 3.1% the President's letter cites.
- Locality pay (5 U.S.C. 5304). Each of the locality pay areas gets a separate percentage meant to close the measured gap between federal and private pay in that area. Those gaps are large on paper, which is why the formula figure for 2027 is an average 20.6% increase. Nothing close to that has been paid in recent years: in the history table below, the biggest total raise in the DC area was 5.31%. The President can substitute a smaller locality figure under 5 U.S.C. 5304a, and that is what the 2026 and 2027 plans do.
The Federal Salary Council advises on locality areas and pay gaps. As of October 4, 2026, OPM's council page lists its recommendations only through the 2026 pay year; no 2027 recommendation is posted.
The final step is an executive order. In late December, the President signs an "Adjustments of Certain Rates of Pay" order that attaches the new pay schedules, and OPM publishes the salary tables. The 2026 order, EO 14368, was signed December 18, 2025. Recent orders have been signed between December 18 and December 31.
Where Congress Stands
Congress can override the President's plan by writing a raise into law, usually in the Financial Services and General Government (FSGG) appropriations bill. Here is the record as of October 4, 2026:
- House FSGG bill (H.R. 8495): reported by the House Appropriations Committee on April 24, 2026. It contains no provision setting a civilian raise. A bill that says nothing defers to the President's plan.
- Senate FSGG bill: no FY2027 Senate FSGG bill text has been published.
- Continuing resolution: the Continuing Appropriations and Extensions Act, 2027 (P.L. 119-103), signed September 2, 2026, funds the government through December 11, 2026. It contains no pay provision.
- FAIR Act (H.R. 7480): introduced February 10, 2026, it would set 2027 at 3.1% across the board plus a 1% average locality increase, about 4.1% in total. It has been referred to the House Oversight Committee and has not become law.
Congress has overridden a freeze before. The President's plan for 2019 was a freeze, and the December 2018 executive order set it in place. Then on February 15, 2019 the Consolidated Appropriations Act (P.L. 116-6) set "an increase of 1.4 percent" plus a 0.5% average locality increase, backdated to the first pay period of January. A second executive order in March 2019 put it into effect. So a 2027 raise is still possible after January if Congress passes one in its final spending deal.
Military Pay Raise 2027
Military basic pay has its own formula in 37 U.S.C. 1009: the same private-industry ECI wage measure, with no half-point reduction. With the index up 3.6% in the year to September 2025, the statutory 2027 raise is 3.6%. The 2026 military raise under the same formula was 3.8%.
The two chambers have taken different positions for 2027:
- The President's budget and August letter: 7% for E-1 to E-5, 6% for E-6 to O-3, 5% for O-4 and up. The Congressional Research Service reports that this averages 6.2% across the force, citing the Pentagon's budget overview.
- House NDAA (H.R. 8800): passed July 22, 2026. The passed text contains no section setting a basic-pay percentage. CRS reports that the House Armed Services Committee version supports the President's 7-6-5 raise.
- Senate NDAA (S. 4784): reported June 15, 2026. Section 602 waives the automatic formula and sets "increased by 3.6 percent" for everyone, effective January 1, 2027.
The two versions have not been reconciled. Until an NDAA settles it, the President's 7-6-5 plan is the figure due to take effect in January.
GS Raises, 2017 to 2026
The base column is the across-the-board General Schedule increase printed on each year's OPM salary table. The two "total" columns are OPM's own figures for the full raise including locality changes in Washington, DC and in the "Rest of U.S." area, which covers employees outside a named locality.
| Year | GS base raise | Total, DC area | Total, Rest of U.S. | Executive order |
|---|---|---|---|---|
| 2017 | 1.0% | 2.88% | 1.63% | EO 13756 |
| 2018 | 1.4% | 2.29% | 1.67% | EO 13819 |
| 2019 | 1.4% | 2.27% | 1.66% | EO 13856 (freeze), then EO 13866 |
| 2020 | 2.6% | 3.52% | 2.85% | EO 13901 |
| 2021 | 1.0% | 1.00% | 1.00% | EO 13970 |
| 2022 | 2.2% | 3.02% | 2.42% | EO 14061 |
| 2023 | 4.1% | 4.86% | 4.37% | EO 14090 |
| 2024 | 4.7% | 5.31% | 4.99% | EO 14113 |
| 2025 | 1.7% | 2.22% | 1.91% | EO 14132 |
| 2026 | 1.0% | 1.00% | 1.00% | EO 14368 |
| 2027 (proposed) | 0% | 0% | 0% | Not yet issued |
Source: OPM General Schedule salary tables, 2017 to 2026; executive orders from the Federal Register. The 2027 row is the President's August 2026 proposal, not a final rate.
In 2021 and 2026 locality percentages did not move, so the total equals the base raise. In 2026 the DC locality payment stayed at 33.94% and Rest of U.S. at 17.06%, the same as 2025.
What a Freeze Means for Your Paycheck
Your table rate would stay at the 2026 figure. A GS-12, step 5 in the Rest of U.S. area earns $101,443 in 2026. Under a 0% plan that cell stays at $101,443 in 2027. As an illustration only, a 3.1% formula raise with no locality change would have taken it to roughly $104,588, about $3,100 more a year. OPM rounds each table cell, so that is not an official 2027 figure.
Step increases still happen. A freeze stops the table from moving, not your position on it. Under 5 U.S.C. 5335, within-grade increases come after 52 weeks at steps 1 to 3, 104 weeks at steps 4 to 6 and 156 weeks at steps 7 to 9, if your performance is acceptable. That same GS-12 moving from step 5 to step 6 in 2027 would go from $101,443 to $104,427 even with no raise. Promotions and quality step increases also still apply.
Retirement math. For FERS, the pension is based on your high-3 average salary, so a frozen year lowers that average compared with a year that has a raise. Your TSP agency match is a percentage of basic pay, so a frozen salary also means a frozen match. If you are near retirement and want to see the effect, run your numbers through our TSP calculator with 0% salary growth for 2027. The Thrift Savings Plan guide covers the 5% match, and this year's contribution limits apply to the TSP as well.
Retirees are on a different track. Federal annuitants do not get the pay raise. FERS and CSRS retirement COLAs are tied by law to the Consumer Price Index rather than to the pay raise, and the 2027 figure has not been announced as of October 4, 2026. Our 2026 Social Security COLA page explains how the inflation measure behind these adjustments works.
Budget for the proposal, not the hope. If you are planning 2027 spending or TSP contributions now, treat 0% as the base case and any raise Congress passes as extra. If a raise is enacted retroactively, as in 2019, you would get back pay to the first pay period of January.
Sources & Methodology
- House Document 119-189, Alternative Plan for Pay Adjustments (letter of August 26, 2026), for the 2027 civilian, law enforcement and military proposals.
- House Document 119-87 (letter of August 28, 2025), for the 2026 plan.
- Executive Order 14368, Adjustments of Certain Rates of Pay, and the earlier orders of the same name in the Federal Register.
- OPM Salaries & Wages, General Schedule tables 2017 to 2026, for base and total increases and 2026 rates.
- 5 U.S.C. 5303 and 37 U.S.C. 1009, for the civilian and military formulas.
- BLS Employment Cost Index, wages and salaries, private industry (CIU2020000000000A), for the 3.6% September 2025 change.
- Budget of the U.S. Government, Fiscal Year 2027, and CRS Insight IN12706 on the military pay proposal.
- Bill texts on govinfo: H.R. 8495, H.R. 7480, H.R. 8800, S. 4784, P.L. 119-103 and P.L. 116-6.
Method notes. "Proposed" means a figure in a presidential plan or a bill that has not been enacted; "final" means a rate in an executive order or OPM salary table now in effect. Congressional status reflects bill text published on govinfo as of October 4, 2026. The $104,588 figure is our own arithmetic on an OPM table cell and is illustrative only.
This article is for general information and is not financial or career advice. Figures are from the White House, OPM, BLS, the Federal Register and published bill texts, checked against the primary sources on 2026-10-04. The 2027 raise is not final; it can change through legislation or the December executive order, and we will update this page when it does.
FAQ
Is there a federal pay raise in 2027?
Not under the President's current plan. The August 26, 2026 alternative pay plan sets civilian base and locality pay at the 2026 rates. Congress can still enact a raise, and the final figure is set by executive order in December.
What would the 2027 raise have been under the formula?
3.1% across the board, which is the September 2025 ECI change of 3.6% minus half a point, plus locality increases the President's letter says would have averaged 20.6%.
Do federal law enforcement officers get a raise in 2027?
The letter directs OPM to raise 2027 pay for law enforcement personnel by 3.8% through a separate process. Which positions qualify had not been published as of October 4, 2026.
What is the military pay raise for 2027?
The President proposes 7% for E-1 to E-5, 6% for E-6 to O-3 and 5% for O-4 and above. The statutory formula figure is 3.6%, which is what the Senate's NDAA (S. 4784) would set for everyone. It is not final until an NDAA passes or January 1 arrives under the President's plan.
What was the 2026 federal pay raise?
1.0% to General Schedule base pay with locality percentages unchanged, so the total raise was 1% in every locality. It was set by Executive Order 14368, signed December 18, 2025. The military got 3.8%.
When will the 2027 pay raise be final?
Usually in late December, when the President signs the annual pay executive order and OPM posts the new tables. Recent orders were signed between December 18 and December 31. A raise Congress passes later can be made retroactive to January, as happened in 2019.
Do I still get a step increase if pay is frozen?
Yes. Within-grade increases follow 5 U.S.C. 5335 waiting periods (52, 104 or 156 weeks depending on your step) regardless of the annual adjustment.
Does the pay raise affect federal retirees?
No. Annuitants receive a cost-of-living adjustment tied to the Consumer Price Index, not the pay raise. The 2027 COLA had not been announced as of October 4, 2026.
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"Federal Pay Raise 2027: A Proposed Freeze for Civilians, and What Could Still Change." Wealthy Pot, 2026. https://wealthypot.com/federal-pay-raise-2027/
