2027 Federal Pay Raise Likely to Be 0% for Most Employees - United Benefits
The 2027 federal pay raise has been announced. Here’s what civilian and military federal employees need to know:  the percentage, your new GS pay, effective date, and what it means for your retirement.
2027 Federal Pay Freeze, 0 percent raise for civilians
Quick Summary: The White House submitted its 2027 alternative pay plan on August 31, 2026, which suggests a pay freeze for the January 2027 GS pay adjustment. Military members are on a separate track, the House passed a defense bill in July proposing raises of 5% to 7% depending on rank and years of service. Both adjustments take effect January 1, 2027.

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2027 Pay Plan Suggests a 0% Raise for Civilian Feds

Every year, the President is required by law to submit an “alternative pay plan” to Congress by August 31. This plan sets the framework for the following year’s General Schedule (GS) pay raise. Submitted August 31, 2026, the latest alternative pay plan proposed a pay freeze for most civilian members of the federal workforce.

Locality Pay Likely to Remain at 2026 Levels

Typically, the annual raise has two parts: an across-the-board base adjustment that applies to every GS employee nationwide, and a locality pay component that varies by where you work. Employees in higher-cost areas such as Washington D.C., San Francisco, New York, and other major metropolitan areas receive locality adjustments on top of the base rate. (For 2026, 1.0% took effect with no locality adjustments.) After the White House’s announcement, it looks like neither component of the annual pay increase will be different from the current year’s levels. 

2027 GS Pay Tables for Civilian Federal Employees

The table below shows 2026 base pay, which will likely remain the same for the upcoming year unless the proposed pay freeze decision is reversed by a law or executive order. Employees in locality pay areas earn more than the base national rate. Check OPM’s locality pay tables at opm.gov for your specific metro area.

Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10
GS-1 $22,584 $23,341 $24,092 $24,840 $25,589 $26,028 $26,771 $27,519 $27,550 $28,250
GS-2 $25,393 $25,997 $26,839 $27,550 $27,861 $28,681 $29,500 $30,320 $31,139 $31,959
GS-3 $27,708 $28,631 $29,555 $30,478 $31,402 $32,325 $33,248 $34,172 $35,095 $36,019
GS-4 $31,103 $32,139 $33,175 $34,212 $35,248 $36,285 $37,322 $38,358 $39,394 $40,430
GS-5 $34,799 $35,958 $37,118 $38,278 $39,437 $40,597 $41,756 $42,916 $44,075 $45,236
GS-6 $38,791 $40,084 $41,378 $42,670 $43,964 $45,257 $46,550 $47,844 $49,137 $50,430
GS-7 $43,106 $44,543 $45,980 $47,417 $48,855 $50,291 $51,728 $53,165 $54,603 $56,039
GS-8 $47,738 $49,328 $50,920 $52,511 $54,102 $55,693 $57,284 $58,875 $60,467 $62,057
GS-9 $52,727 $54,484 $56,242 $57,999 $59,757 $61,514 $63,271 $65,029 $66,786 $68,544
GS-10 $58,064 $59,999 $61,934 $63,869 $65,805 $67,740 $69,675 $71,610 $73,545 $75,480
GS-11 $63,795 $65,921 $68,047 $70,173 $72,300 $74,426 $76,552 $78,678 $80,804 $82,931
GS-12 $76,463 $79,012 $81,561 $84,109 $86,657 $89,205 $91,754 $94,303 $96,851 $99,399
GS-13 $90,925 $93,956 $96,987 $100,018 $103,050 $106,081 $109,112 $112,143 $115,174 $118,205
GS-14 $107,446 $111,028 $114,610 $118,191 $121,773 $125,355 $128,937 $132,518 $136,101 $139,682
GS-15 $126,384 $130,596 $134,809 $139,021 $143,234 $147,446 $151,659 $155,871 $160,083 $164,296

Source: OPM.gov

One thing worth noting: step increases are separate from the annual pay raise. If you are due a within-grade step increase in 2027, your total pay will change. Check your last SF-50 or ask your HR office when your next step is scheduled.

2027 Pay Raise for Military Personnel and Some LEOs

Military members follow a completely different pay process from civilian federal employees. GS civilian pay is set by the President’s alternative pay plan, but military basic pay is set each year through the National Defense Authorization Act (NDAA), a separate piece of legislation passed by Congress. For 2027, the House passed its version of the NDAA in July 2026, and the proposed military pay numbers look very different from what civilian employees are receiving. The same raise would also apply to some federal LEO (law enforcement officer) positions.

Military Pay Group Proposed Annual Pay Raise Status
Junior Enlisted (E-1 through E-4) 7% House FY2027 NDAA passed July 22, 2026 — final pending Senate and conference
All Other Active Duty (E-5 and above; all officers) 5% House FY2027 NDAA passed July 22, 2026 — final pending Senate and conference
2026 military raise (for reference) 3.8% Authorized by FY2026 NDAA — confirmed and in effect

Source: House FY2027 NDAA, passed July 22, 2026. Final NDAA not signed until December; figures may change in Senate-House conference.

The Senate is still working on its own version of the NDAA. A conference committee will reconcile both chambers’ proposals before the President signs the final law. Military pay also takes effect January 1, 2027.

Employee Unions and Federal Pay Disparities

The difference between civilian and military pay proposals this year is significant. In 2026, civilian federal employees received roughly 1% while military members received 3.8%. For 2027, it is starting to look like that gap will widen considerably. Federal employee unions have pointed to this disparity as part of their push for the FAIR Act, a proposed bill that would provide a 4.1% raise for civilian employees in 2027. That bill is active in Congress, but highly unlikely to make it out of the House of Representatives. 

What to Know If You Are Planning to Retire Soon

If you are within a few years of retirement, the pay freeze impacts your high-3 salary. Consecutive years of low to nonexistent annual pay bumps diminish that average, which translates into a lower monthly pension for the rest of your retirement.

Next Steps

United Benefits helps federal employees understand their full benefits picture: FERS, TSP, FEHB, FEGLI, and pay raise planning. Talk with a federal benefits specialist to see how the 2027 pay plan affects your specific situation by filling out the form below:

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