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The Official 2026 Government Raise Breakdown: Why Federal Workers Get 1.0% While Military Gets 3.8%

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As of December 20, 2025, the official figures for the U.S. government's 2026 pay adjustments have been largely finalized, revealing a distinct and controversial disparity across different sectors of the federal workforce. While millions of Americans rely on these annual adjustments to keep pace with inflation and the rising cost of living, the final percentages for civilian employees, military personnel, and Social Security recipients are determined by separate legislative and economic mechanisms, leading to significant differences in take-home pay increases for the new year.

The core intention of the annual government raise is to ensure compensation remains competitive with the private sector, but political and budgetary priorities often result in a fragmented outcome. Understanding the "government raise for 2026" requires looking at three distinct, and unequal, figures: the General Schedule (GS) increase, the military pay boost, and the Social Security Cost-of-Living Adjustment (COLA).

The General Schedule (GS) Federal Civilian Pay Raise: 1.0%

The most debated figure for 2026 is the pay raise for the General Schedule (GS) civilian federal workforce, which includes employees across the vast majority of federal agencies like the Department of Defense, NASA, the Department of Veterans Affairs, and the Department of Homeland Security. Despite legislative proposals for a much higher increase, the official figure finalized for January 2026 is a modest 1.0% across-the-board increase.

This percentage is the result of the President’s authority to issue an "alternative pay plan" that supersedes the statutory formula outlined in the Federal Employee Pay Comparability Act (FEPCA) of 1990.

The Disconnect: Statutory vs. Actual Raise

The 1.0% figure stands in stark contrast to the pay increase recommended by the statutory formula and federal employee advocacy groups. The FEPCA formula is designed to narrow the pay gap between federal and private-sector workers, utilizing the Employment Cost Index (ECI) for "wages and salaries, private industry workers" as its benchmark.

  • ECI-Based Statutory Raise: The full statutory increase called for by the ECI for 2026 was significantly higher than the 1.0% alternative plan, often cited in the range of 3.3% to over 4.0%.
  • The FAIR Act Proposal: The Federal Adjustment of Income Rates (FAIR) Act, a legislative proposal backed by unions like the American Federation of Government Employees (AFGE), called for an average pay increase of approximately 4.3% for 2026, which would have included both a base increase and a locality adjustment.
  • Locality Pay: The 1.0% raise is an across-the-board increase. Historically, an additional locality pay adjustment is added, which varies by metropolitan area and aims to account for local cost of living. However, the 1.0% alternative plan often minimizes or eliminates the locality component, resulting in a total increase far below private-sector wage growth.

The decision to implement the low alternative pay plan is typically justified by "national emergency or serious economic conditions affecting the general welfare," or simply budgetary constraints. This repeated pattern has led to a growing and persistent federal pay gap, making it challenging for agencies to recruit and retain highly skilled talent, particularly in specialized fields like Information Technology (IT), cybersecurity, and engineering.

Active-Duty Military and Social Security COLA: Higher Percentages

In a clear demonstration of the different legislative tracks, the 2026 pay adjustments for the uniformed military and Social Security beneficiaries are notably higher than the civilian GS raise, reflecting distinct priorities and calculation methods.

The 2026 Military Pay Raise: 3.8%

Active-duty military service members are slated to receive a pay increase of 3.8% for 2026.

This raise is determined by a separate mechanism tied to the National Defense Authorization Act (NDAA) and is typically based on the Employment Cost Index (ECI) for private-sector wages, but is not subject to the same "alternative pay plan" override as the civilian GS pay. The 3.8% increase for basic pay applies to all uniformed service members, including those in the Army, Navy, Air Force, Marine Corps, and Coast Guard. This higher percentage is aimed at maintaining the quality of life for military families and ensuring the competitiveness of military compensation compared to the private sector. The specific pay tables for each rank and years of service (e.g., O-3, E-6, W-2) will reflect this 3.8% baseline adjustment.

Military retirees and disabled veterans receiving benefits from the Department of Veterans Affairs (VA) will also see increases, which are often tied directly to the Social Security COLA.

The 2026 Social Security COLA: 2.8%

The Cost-of-Living Adjustment (COLA) for Social Security and Supplemental Security Income (SSI) beneficiaries is set to increase by 2.8% for 2026.

This is arguably the most straightforward and least politically manipulated of the three raises. The COLA is calculated automatically based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the third quarter of the current year.

The 2.8% adjustment will apply to the monthly benefits of over 70 million Americans, including retirees, disabled workers, and their dependents. While a 2.8% increase provides some relief, many advocacy groups, such as The Senior Citizens League (TSCL), argue that the CPI-W formula does not accurately reflect the true inflation experienced by seniors, particularly the rising costs of healthcare and housing.

Key Entities and Economic Factors Driving the 2026 Raise

The final percentages for the 2026 government raise are the culmination of lobbying, economic data, and legislative action involving several key entities and economic indicators. These factors highlight the complex process of federal compensation.

Influential Entities

  • Office of Personnel Management (OPM): The agency responsible for administering the GS pay system and issuing the official pay tables and Executive Order memos.
  • Federal Salary Council (FSC): An advisory body that makes recommendations to the President on the pay gap and locality pay adjustments, based on ECI data.
  • Congress (House and Senate): Responsible for passing the annual NDAA (for military pay) and approving appropriations that fund the civilian pay raise. They can also pass legislation like the FAIR Act to override the President’s alternative plan.
  • Office of Management and Budget (OMB): Responsible for preparing the President’s annual budget request, which includes the proposed pay raise figures.
  • Federal Employee Unions: Organizations such as the National Treasury Employees Union (NTEU) and the AFGE actively lobby Congress and the White House for higher pay raises that match the statutory ECI figures.
  • Social Security Administration (SSA): The agency that officially announces the COLA based on the CPI-W data.

Economic Indicators and Legislation

  • Employment Cost Index (ECI): The primary statutory measure for the GS pay raise, reflecting private-sector wage growth. The disparity between the ECI and the 1.0% alternative plan is the source of the federal pay gap controversy.
  • Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): The sole index used to calculate the Social Security COLA.
  • Federal Employee Pay Comparability Act (FEPCA): The 1990 law that established the ECI-based formula for GS pay, which is routinely overridden by the President.
  • National Defense Authorization Act (NDAA): The annual legislation that sets the pay raise for uniformed military personnel.
  • Inflation: The current and projected rate of inflation is the most critical factor influencing the real-world value of all three raises. A lower raise percentage in a high-inflation environment (like 2024-2025) means a net loss in purchasing power for federal employees and beneficiaries.

In summary, while the 2026 government raise is a single concept, it is a multi-faceted reality. Military personnel and Social Security beneficiaries will see increases of 3.8% and 2.8%, respectively, providing a stronger buffer against economic pressures. However, the civilian General Schedule workforce will receive a minimal 1.0% increase, continuing a trend that advocacy groups warn will severely impact federal recruitment and retention efforts in the coming years.

The Official 2026 Government Raise Breakdown: Why Federal Workers Get 1.0% While Military Gets 3.8%
What is the government raise for 2026?
What is the government raise for 2026?

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