Schatz proposes 4.1% pay raise for federal workers

US Sen. Brian Schatz of Hawaiʻi introduced legislation Tuesday that would give federal workers a 4.1% pay raise in 2027, a move that federal employee unions say is needed to keep government jobs competitive.

The Federal Adjustment of Income Rates Act would boost wages for civil servants who have fallen behind their counterparts in the private sector. The Federal Salary Council reported in 2023 that federal workers earned approximately 27% less on average than those working outside government.

The bill is cosponsored by US Sen. Mazie Hirono of Hawaiʻi and Rep. James Walkinsha of Virginia.

“Whether it’s inspecting our food, conducting medical research, or caring for veterans, federal workers play an important role in our daily lives and deserve pay that reflects that,” Schatz said.

The proposal follows a 2% pay increase implemented in 2025. Proponents argue the 2027 adjustment is necessary to recruit and retain a talented workforce amid rising living costs.

Everett Kelley, national president of the American Federation of Government Employees, said the pay gap makes it difficult to hire dedicated public servants.

“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,” Kelley said.

To see the full text of the bill, click here.