Federal Adjustment of Income Rates Act increases federal employee pay by 4.3% in 2026.
The Federal Adjustment of Income Rates Act, or FAIR Act, increases the rates of pay for federal employees and prevailing rate employees by 4.3% in 2026. This includes a 1% increase for statutory pay systems and a 3.3% increase for prevailing rate employees. The bill also adjusts locality pay by 3.3% for calendar year 2026.
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