2027 Federal Pay Raise: What Federal Employees Should Know About the August 31 Deadline

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A major milestone for the 2027 federal pay raise arrives August 31, 2026. That's the day the president faces a statutory deadline to submit an alternative plan for the across-the-board pay adjustment under 5 U.S.C. § 5303.
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If he submits an alternative plan before September 1, it specifies the administration's alternative 2027 base-pay adjustment, subject to any later congressional action. The administration's current budget position is a 0% civilian increase, so the plan could confirm that freeze or substitute a different figure.
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If no plan is submitted in time, the statutory base-pay formula applies instead. Locality pay is governed separately and can still be addressed through the president's alternative authority.
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As of late August 2026, no plan had been issued. That means next year's raise remains undetermined. This guide explains the deadline, the competing proposals, and what each outcome means for your paycheck and your future annuity.
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What the August 31 Deadline Actually Is
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The August 31 deadline applies to the across-the-board base pay adjustment, not to locality pay. Under 5 U.S.C. § 5303(b), part of the Federal Employees Pay Comparability Act (FEPCA) of 1990, the president must transmit to Congress before September 1 a plan for any alternative to the statutory base-pay adjustment.
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If that authority is not exercised in time, the default § 5303(a) formula would apply to base pay. That formula is tied to the Employment Cost Index (ECI), a Bureau of Labor Statistics measure of wage growth.
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Locality pay operates on a separate track. It is governed by 5 U.S.C. § 5304 and § 5304a, and the president can transmit an alternative locality-pay plan later in the year, at least one month before those payments would otherwise take effect.
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In practice, administrations have sometimes set the base-pay figure in August and finalized locality pay afterward. That's why the August 31 date matters most for the base-pay number, while locality adjustments can still be decided separately.
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Historically, presidents and Congress have repeatedly acted to prevent the full FEPCA statutory outcome from taking effect. According to FedSmith, last year's letter covering the 2026 raise arrived on August 28, just three days before the cutoff. A similarly late submission is expected for 2027.
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Where the 2027 Pay Raise Stands Right Now
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The 2027 federal pay raise is currently unresolved. The administration is proposing a freeze, and congressional Democrats are proposing 4.1%.

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According to the Government Executive, when the White House released its fiscal 2027 budget in April 2026, the document was silent on civilian compensation. That document normally lays out the administration's pay plan for the following year.

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The Office of Management and Budget (OMB), the White House office that prepares the federal budget, later clarified the position. According to the Government Executive, OMB confirmed that Trump was in fact proposing "no pay increase" for 2027. Military service members, by contrast, would see between a 5% and 7% raise, depending on their rank.
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Congress has not enacted a different civilian pay increase so far. According to the Government Executive, the House's fiscal 2027 Financial Services and General Government bill does not specify a federal employee raise, which the outlet characterized as effectively endorsing the administration's position.
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Silence alone does not legally enact the 0% proposal. The statutory FEPCA process and the president's alternative-pay-plan authority remain the mechanisms that determine the final outcome unless Congress legislates a specific raise.

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The Competing Proposals for 2027
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Three broad outcomes are on the table: a freeze, a modest raise set by an alternative plan, or the FEPCA statutory default. The table below compares the main proposals.

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On the FEPCA default figure: the § 5303(a) formula equals the relevant ECI change minus 0.5 percentage point. According to the Bureau of Labor Statistics, private-industry wages and salaries rose 3.6% for the 12 months ending September 2025. That would produce roughly a 3.1% base-pay adjustment under the formula. That is an estimate of the default, not an announced raise.

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The FAIR Act, or Federal Adjustment of Income Rates Act, is the leading legislative alternative. According to the sponsors' announcement, Representative James Walkinshaw (D-Va.) and Senator Brian Schatz (D-Hawaii) reintroduced the bill (H.R. 7480 / S. 3823) in February 2026.
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It would provide a 4.1% average increase for 2027: a 3.1% across-the-board raise plus an average 1% locality adjustment. Previous versions of the FAIR Act have not become law, and as of August 2026 the 2027 bill had not been enacted.
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What History Suggests
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Recent precedent points toward a small raise rather than a full freeze, though no figure has been announced. According to FedSmith, Trump's fiscal 2026 budget also omitted a civilian raise.
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Yet his alternative pay plan letter issued in late August 2025 ultimately authorized a 1% across-the-board base pay increase, with locality pay held at 2025 levels and a larger total increase for certain law enforcement employees. That raise was formalized by executive order in December 2025.
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FedSmith notes this "propose restraint, then settle on a modest increase" sequence recurred throughout Trump's first term, when raises averaged about 2% annually. Based on that history, FedSmith considers a small increase in the roughly 1% range more likely than either the full statutory FEPCA outcome or a large raise.
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Keep in mind that this is an analyst estimate based on precedent, not an announced administration decision.
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Why the 2027 Raise Matters for Your Retirement
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A federal pay freeze can leave a future federal annuity lower than it would otherwise have been. Both the Federal Employees Retirement System (FERS), the retirement system covering most current federal civilian employees, and the Civil Service Retirement System (CSRS), the older system that still covers a relatively small number of employees, calculate pensions using your High-3.
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Your High-3 is the highest average basic pay for any three consecutive years of creditable service. For most General Schedule employees, locality pay is included in basic pay for retirement purposes.

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A no-raise year does not reduce an already-earned salary or pension, but it can flatten the salary average that feeds the pension formula. According to NARFE, the National Active and Retired Federal Employees Association, annuities are based on High-3 average salary, so a freeze can affect future retirees, not just current paychecks.
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The direct High-3 effect is clearest for employees whose 2027 salary falls within their eventual High-3 period. A freeze can also affect later salary levels, because future percentage increases are generally applied to the pay rates then in effect. A 0% year lowers the base that later raises build on. Later pay actions could offset that difference, but they are not guaranteed to do so.
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This is where planning matters. Federal Employee Advisor Network, a retirement planning firm specializing in federal employee benefits, works with employees to project High-3 outcomes, Thrift Savings Plan (TSP) contribution strategy, and retirement timing under different pay-raise scenarios. The TSP is the federal government's tax-advantaged retirement savings program.
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When a raise is uncertain, running the numbers under both a freeze and a modest increase helps you avoid basing a retirement date on an assumption.
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What Happens After the Deadline
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The August 31 plan is not the final word. The pay figures are confirmed later in the year.
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Congress can still legislate a different civilian raise through the appropriations process before year-end, and locality pay may be addressed on its separate track. The final pay schedules are typically implemented through a presidential executive order near year-end. After that, the Office of Personnel Management (OPM), the federal government's human resources agency, publishes the official pay tables.
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For reference, the 2026 raise was finalized by executive order in December 2025 and took effect with the first full pay period of January 2026.
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For 2027, watch three key dates: the August 31 base-pay deadline, the fall appropriations negotiations, and the final executive order expected near the end of the year. Final 2027 pay tables are expected near year-end, but the exact timing has not been announced.
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The Bottom Line
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The 2027 federal pay raise remains undecided as the August 31 alternative base-pay-plan deadline approaches, and even after that date, locality pay and the final pay schedules may remain subject to subsequent presidential and congressional action. Recent precedent points toward a small raise rather than a true freeze, but nothing has been announced. Because a flat year can quietly lower your High-3 and reshape your retirement math, now is the time to model your options.
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Federal Employee Advisor Network, a retirement planning firm specializing in federal employee benefits, can help you project how each 2027 scenario affects your High-3, your TSP strategy, and your ideal retirement date. Schedule a consultation to run your numbers before the final pay tables are set.

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Frequently Asked Questions

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1. When is the deadline for the 2027 federal pay raise?

The key deadline is August 31, 2026. Under 5 U.S.C. § 5303, part of the Federal Employees Pay Comparability Act (FEPCA), the president must submit an alternative plan for the across-the-board base pay adjustment before September 1. This deadline governs base pay; locality pay is decided separately later in the year.
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2. Will federal employees get a pay raise in 2027?

It is not yet confirmed. The White House FY2027 budget position is a 0% civilian freeze, while congressional Democrats propose 4.1% through the FAIR Act. Analysts note that a similar 2026 freeze proposal became a 1% raise, but no 2027 figure has been announced as of August 2026.

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3. How much is the 2027 federal pay raise?

No figure is final. The administration's budget position is 0%; the FAIR Act proposes 4.1% (3.1% base plus about 1% locality). In 2026, an identical freeze proposal ultimately became a 1% base raise. The final number is expected by executive order near the end of 2026.

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4. What happens if the president misses the August 31 deadline?

If no alternative base-pay plan is submitted before September 1, the FEPCA statutory formula in 5 U.S.C. § 5303(a) would apply to base pay. Based on Bureau of Labor Statistics wage data, that default would produce roughly a 3.1% base increase. In practice, the full statutory FEPCA outcome has repeatedly been superseded by presidential alternative plans, congressional action, or both.

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5. Does a federal pay freeze affect my FERS pension?

It can. A federal pay freeze does not directly reduce an existing pension entitlement, but it may result in a lower High-3 than an employee would have had with a raise. The effect is greatest when the frozen year falls within the employee's eventual High-3 period, and a 0% year can also lower the base that later raises build on.

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6. Is the military getting a bigger raise than civilians in 2027?

Yes, under current proposals. According to the Government Executive, the White House proposes a 5% to 7% military raise varying by rank while proposing no civilian increase. The Senate Armed Services Committee's version proposes a flat 3.6% instead. Neither figure is final.

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Disclaimer
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This article is for general informational and educational purposes only and does not constitute financial, legal, tax, employment, or retirement advice. Federal pay proposals, FEPCA adjustments, locality pay, executive actions, congressional legislation, and OPM pay tables may change. Verify current information with OPM, the White House, Congress, the Bureau of Labor Statistics, and your agency before making retirement or financial decisions.

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