In recent years, the Federal Salary Council has produced data suggesting that federal employees earn nearly 25% less than their private sector counterparts.
Democratic lawmakers recently put forth legislation intended to help narrow that gap.
On Feb. 10, U.S. Rep. James Walkinshaw and Sen. Brian Schatz introduced the Federal Adjustment of Income (FAIR) Act, which would provide federal employees with a 4.1% pay increase in calendar year 2027.
“For more than a decade, federal employees have endured government shutdowns, pay freezes, hiring freezes and lost pay as a result of sequestration-related furloughs,” a statement from Walkinshaw’s office noted.
“The FAIR Act’s wage adjustment restores years of lost wage increases for federal employees by ensuring that federal employees, who serve in all 50 states on behalf of constituents in every congressional district, earn an average pay increase of 4.1%.”
Describing federal workers as “the backbone of America,” Walkinshaw lauded government employees for delivering essential services and benefits, calling the proposed pay raise for 2027 “much needed … so federal pay can keep pace with the cost of living and public service careers remain competitive.”
Federal employee unions voiced their support for the legislation. The American Federation of Government Employees (AFGE), for instance, said in a statement that the Fair Act would provide “a meaningful pay adjustment” for the federal workforce.
“Fair pay isn’t just good for federal workers, it’s also good for the quality of government services and the people we all serve,” said AFGE National President Everett Kelley.
The National Treasury Employees Union (NTEU) commended the legislation’s sponsors “for supporting federal workers receiving a fair pay increase in 2027,” said NTEU National President Doreen Greenwald, “to ensure that employees can keep up with the costs of living and that the federal government can recruit and retain talented workers.”
24 February 2026
Category
HR News Article
