In its annual circular dealing with the fiscal year (FY) 2026 Federal government budget, the Office of Management and Budget (OMB) said that agencies should plan for a 3 percent pay raise for civilian employees in January 2026.
Agencies should consult with their OMB representative on the estimated military pay raise, OMB said.
“In making their final estimates for the FY 2026 Budget, agencies should anticipate revising pay raise amounts after the President makes a pay raise decision,” OMB Circular A-11 says. “Your OMB representative will provide additional guidance during Budget season.”
The annual update to Circular A-11 details the requirements for putting together the annual submissions, which are due to OMB by September. OMB said the thousand-page guidance is largely unchanged from last year with only a few technical or clarification changes.
For January 2025, President Biden proposed a 2 percent pay raise for Federal civilian employees, marking a significant decrease from this year’s 5.2 percent pay raise.
The president’s FY2025 budget proposed a 4.5 percent pay raise for military service members.
Both the House and Senate FY2025 National Defense Authorization Act (NDAA) agree upon a 4.5 percent pay raise for military members, though the House version of the NDAA allots a nearly 20 percent pay increase for junior enlisted service members.
Since President Biden took office, Federal employees received a 5.2 percent raise in 2024, 4.6 percent in 2023, and 2.7 percent in 2022.
