2027 Federal Pay Freeze and Paid Leave: What Federal Employees Need to Know

Two federal workforce issues are developing at the same time that could affect employees in 2027: the administration is proposing no general federal pay increase, while lawmakers are considering legislation that would expand access to paid leave.

Neither change is set in stone. But both are worth keeping an eye on if you’re a federal employee planning for next year.

The Administration Wants 2027 Pay Tables to Stay at 2026 Levels

On August 26, President Trump submitted an alternative pay plan to Congress that would provide no across-the-board increase in basic or locality pay for most civilian federal employees in 2027.

If that plan ultimately takes effect, federal employees generally would start 2027 with the same base and locality pay rates used in 2026.

There is an exception for certain federal law enforcement positions. The White House has directed OPM to use its separate authority to provide those covered positions with a 3.8% increase in 2027. OPM will determine which positions are included.

But it’s important not to confuse a proposed pay freeze with a finalized one.

Congress could still approve a different pay adjustment. If lawmakers don’t establish another increase, the administration’s alternative pay plan would provide the framework for 2027 compensation, with the final pay tables typically issued later in the year.

So, for now, there is no final 2027 pay freeze.

Congress Is Also Considering Changes to Federal Paid Leave

Paid leave is another area where federal employees could see changes, although the proposals in the House and Senate aren’t identical.

The Comprehensive Paid Leave for Federal Employees Act has been introduced in both chambers.

The House version, H.R. 9261, would expand paid family and medical leave beyond the federal government’s existing paid parental leave program. Among other provisions, it would provide paid leave in certain circumstances involving domestic violence, sexual assault, stalking and other qualifying acts of violence. It also addresses situations such as pregnancy loss, unsuccessful fertility treatment, failed adoption matches and failed surrogacy arrangements.

The Senate version, S. 5168, takes a different approach. It would make qualifying FMLA leave paid but does not include all of the additional circumstances covered by the House proposal.

Both bills generally require at least 12 months of qualifying service, and neither has become law.

What Should Federal Employees Do Now?

For the moment, nothing changes to your paycheck or leave balance because of these proposals.

The administration’s pay plan is just that, a plan. Congress could still take a different approach before the 2027 rates are finalized.

Likewise, the paid-leave legislation has a long way to go, and the differences between the House and Senate bills would have to be resolved before anything becomes law.

Still, these developments are worth watching.

A change in your 2027 salary could affect your income and retirement calculations, while expanded paid leave could become important if you eventually face a serious medical or family situation.

If you’re getting closer to retirement, compensation and leave changes can have implications beyond your next paycheck. A Federal Retirement Consultant (FRC®) can help you understand how those changes fit into your FERS, TSP, and overall retirement strategy.