2026 GS Pay Increase: Federal employees across the United States are already talking about 2026 paychecks. The General Schedule pay scale, known as the GS system, is expected to rise next year. While the government has not released final numbers yet, early estimates point to a solid increase that could help many workers deal with rising costs.
The GS pay system covers most civilian federal workers. It runs from GS-1 to GS-15. Each level has ten steps. Workers move up these steps over time as they gain experience and show good performance. On top of base pay, the government adds locality pay. This extra amount helps workers in expensive cities keep up with higher living costs.
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Expected raise
People who track federal pay say base GS pay could go up by about 4.6% in 2026. That would be one of the bigger increases in recent years. On top of that, locality pay could add another 2-3% in places like Washington D.C., New York City, and San Francisco.
“The increases are intended to maintain federal salaries in line with the private sector and to reflect inflationary pressures,” a spokesperson for FedManager noted. “Employees in the GS system will see meaningful improvements, particularly in higher-cost regions.”
For example, a GS-7 worker in a normal area might see pay rise from about $50,000 to around $52,300. The same worker in the D.C. area could earn close to $62,000 once locality pay is added. Higher grades also benefit. A GS-12 Step 5 worker in a regular area might earn about $3,000 more, pushing pay near $100,000. In big cities, that number could reach close to $115,000.
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How locality pay works?
Locality pay exists because costs differ across the country. The Office of Personnel Management studies wage data and compares federal jobs to similar private jobs in each region. It then adds a percentage to base pay to help balance the gap.
“Locality pay ensures that federal employees can maintain a standard of living consistent with their community’s economic environment,” FederalPay.org analysts explained. “It’s especially critical in high-cost cities where base pay alone would fall short.”
The official GS 2026 pay tables should arrive in late December. Until then, many workers already plan budgets, home payments, and savings based on these projections.
