Bill > HR493

This bill, known as the Federal Adjustment of Income Rates (FAIR) Act, proposes to increase pay rates for federal employees in 2026 through several key provisions. For employees under statutory pay systems, the bill mandates a 3.3 percent increase in basic pay rates, which applies to most federal white-collar workers across different government agencies. Similarly, for prevailing rate employees (typically blue-collar workers whose pay is based on local wage surveys), the bill also provides a 3.3 percent increase in basic pay rates, which will be applied across different wage areas regardless of the standard wage survey requirements. Additionally, the bill includes a 1 percent increase to locality pay adjustments, which are supplemental payments that account for differences in local labor market costs. These pay adjustments are intended to help federal employees keep pace with inflation and maintain competitive compensation levels. The proposed changes would take effect in calendar year 2026 and would apply to basic pay rates as they existed at the end of fiscal year 2025.

Government Affairs

https://www.congress.gov/bill/119th-congress/house-bill/493/all-info