The Office of Personnel Management (OPM) has confirmed a 1% General Schedule (GS) pay raise for 2026. While the raise offers a modest increase in base salaries for federal employees, the absence of a locality pay adjustment has left many workers frustrated, especially in high-cost regions.
Federal employees were expecting both a base pay increase and locality adjustments, which affect compensation in urban and high-expense areas.
Impact on Federal Employees
The 1% increase applies to all GS pay grades, from entry-level GS-1 to senior GS-15 employees. While the raise slightly improves take-home pay, employees in major cities like Washington D.C., New York, and San Francisco feel the cost-of-living gap remains unaddressed, as locality pay remains frozen.
State-Wise Sample Impact Table
| State | GS Employees Affected | Average Raise ($) | Locality Pay Change |
|---|---|---|---|
| California | 400,000 | 520 | 0% |
| Texas | 250,000 | 480 | 0% |
| New York | 180,000 | 500 | 0% |
| Florida | 150,000 | 470 | 0% |
| Pennsylvania | 120,000 | 465 | 0% |
| Illinois | 100,000 | 460 | 0% |
The table illustrates the number of GS employees affected, average dollar increase from the 1% raise, and lack of locality pay adjustment by state.
Reasons Behind No Locality Adjustment
The OPM cited budget constraints and federal spending priorities as the reason for freezing locality pay in 2026. Federal funding for locality adjustments has not increased, meaning employees in high-cost areas will see no additional compensation beyond the base raise.
How Employees Can Respond
Workers are encouraged to review their pay statements to confirm the 1% raise, plan personal budgets accordingly, and stay informed about future locality adjustments or union negotiations. Some employees may consider filing for relocation benefits or cost-of-living allowances where applicable.
Conclusion
The 2026 GS pay raise provides a small base increase of 1%, but the lack of locality pay leaves many federal employees dissatisfied, particularly in high-cost regions. Staying informed and planning finances carefully will help mitigate the impact while awaiting future adjustments.
Disclaimer: This article is for informational purposes only. GS pay raises, locality pay adjustments, and federal employee compensation are subject to official OPM announcements. Employees should consult the official OPM website or HR office for the most accurate and updated information.