Will federal employees get a raise in 2027? Right now, the President’s plan calls for 0% for most civilian employees. But that number is not final. The 2027 pay rates won’t be locked in until the President signs the pay executive order, usually in mid-to-late December.
Between now and then, Congress could override the freeze, or the President could revise the plan. Here’s where the decision stands, how it gets made, and what a frozen year could mean for your paycheck and your pension.
Where it stands
On August 26, the President sent Congress his alternative pay plan for 2027. Here’s what it proposes:
| Group | Proposed for 2027 |
|---|---|
| Most civilian federal employees | 0% (base and locality pay frozen at 2026 rates) |
| Law enforcement personnel | 3.8% (OPM decides who qualifies) |
| Military | 5–7%, depending on rank |
These are proposals, not law. For most civilian feds, the 0% stands unless Congress or the President changes it before the December executive order.
How it gets decided
The 2027 raise comes down to a handful of dates:
- August 26: The President’s alternative pay plan sets 0% for most civilian employees.
- September 15: 110 lawmakers urge Congress to reject the freeze.
- December 11: Current stopgap funding expires. The next funding bill is the most likely way any raise gets written into law.
- Mid-to-late December: The pay executive order sets the 2027 rates.
- January: The first 2027 paychecks arrive.
From here, there are three ways this ends:
- The default. Congress doesn’t act, and the December executive order locks in 0%.
- Congress overrides it. A raise is written into a funding bill and signed into law.
- The President revises the plan. The plan changes before the December executive order is signed.
Some lawmakers are pushing for more. The FAIR Act (H.R. 7480) would set a higher raise than the President’s plan, but it hasn’t passed.
Has a freeze been reversed before?
Yes. A proposed number has changed late in the process several times:
- 2019: A freeze was set in December. A spending bill in February then gave feds a 1.9% raise, retroactive to January.
- 2017: The President revised his own plan, raising it from 1.6% to 2.1%.
- 2008: A year-end spending bill raised a 3.0% proposal to 3.5%.
None of that guarantees a raise this time. It does mean 0% isn’t settled until the executive order is signed, and even then Congress can still act.
Why it matters if you’re close to retirement
A frozen year doesn’t just affect your next paycheck. If it falls in your High-3 years, it lowers your pension for the rest of your life.
Here’s a simple illustration for a FERS employee retiring with 30 years of service:
| Scenario | Last 3 salaries | High-3 | Pension at 30 years × 1% |
|---|---|---|---|
| With raises | $95,000, $100,000, $105,000 | $100,000 | $30,000 a year |
| Final year frozen | $95,000, $100,000, $100,000 | $98,333 | $29,500 a year |
That’s about $500 a year less, every year of retirement, before cost-of-living adjustments. It’s not a dramatic number, but it adds up over a 25- or 30-year retirement.
If you’re deciding when to retire, a freeze is worth factoring in. It isn’t usually a reason on its own to change your date, though.
The paycheck side: FEHB premiums are going up
Even if pay stays flat, your take-home pay probably won’t. The average FEHB enrollee premium is rising 10.9% for 2027. On average, that’s about this much more per paycheck:
- Self Only: about $13
- Self Plus One: about $34
- Self and Family: about $40
So with a 0% raise, many feds will see a smaller net paycheck in January. Open Season runs November 9 through December 14, and it’s your best chance to offset the increase by comparing plans.
What to do now
- Budget on 0% until the executive order is signed. Treat any raise as a bonus, not a plan.
- Watch December 11. The next funding bill is the most likely place a raise would show up.
- Shop your FEHB plan during Open Season. A better-fitting plan can offset some or all of the premium increase.
- If you’re in your High-3 years, run the numbers. Know what a frozen year means for your pension before you set a retirement date.
The bottom line
Plan on zero and hope for more. The 2027 decision isn’t final yet, and history shows a proposed freeze can change. But your budget, your Open Season choice and your retirement timing shouldn’t depend on a raise that hasn’t happened.
Within 12 months of retirement, or already retired, with $1 million or more invested? Book a free 15-minute Fit Call with our team at Haws Federal Advisors. We’ll look at your pension, TSP and tax picture together.
This article is for educational purposes only. It isn’t tax, investment or legal advice. Figures reflect the pay decision as of October 29, 2026.