FAIR Pay Adjustment 2027

Summary#

This bill, called the Federal Adjustment of Income Rates Act (FAIR Act), would raise pay rates for covered employees in 2027. It sets a 3.1 percent increase to basic pay under the statutory pay systems for calendar year 2027. It also increases basic pay for prevailing rate employees by 3.1 percent for fiscal year 2027, applied to the rates in effect on the last day of fiscal year 2026 and waiving the normal wage survey requirements. Finally, it increases locality pay by 1 percent for calendar year 2027.

What it means for you#

• If you are paid under a statutory pay system, your basic pay rates would increase by 3.1 percent for calendar year 2027.
• If you are a prevailing rate (wage-area) employee, your basic pay rates would increase by 3.1 percent for fiscal year 2027, based on the rates in effect at the end of fiscal year 2026 and without the usual wage survey step.
• If your pay includes locality pay, those locality rates would increase by 1 percent for calendar year 2027.
• The bill text does not specify exact payment dates, retroactive pay, or interactions with other pay changes.

Expenses#

The bill text does not include cost estimates, funding sources, or budget offsets. No publicly available information.

Proponents' View#

The bill was introduced by the listed sponsors to increase rates of pay for covered employees for 2027. No publicly available information on additional statements of purpose or supporting arguments in the bill text.

Opponents' View#

No publicly available information.