2027 Federal Pay Raise or Freeze? What the December Funding Deal and Open Season Mean for Your Paycheck

Will federal employees get a 2027 pay raise, and what happens if the answer is zero? The question matters more than usual this year because Open Season began on November 9, and your share of health insurance premiums is set to rise in January. Here is where the raise stands, how the premium increase fits in, and three Open Season tips to act on before the December 14 deadline.

Where the 2027 Raise Stands

According to Government Executive’s November 6 reporting, Representative James Walkinshaw wants a 2027 raise included in the deal that keeps the government open past December 11. His opening request is 4.1 percent, and he has indicated he would take 3 percent over zero.

Under 5 U.S.C. § 5303, a statutory formula sets the annual raise. The President filed his own alternative plan in August, which proposes a zero percent raise for most federal employees. Congress can override that plan, but only through a law. If Congress stays silent, the freeze takes effect by executive order in December, and the result would be a zero on your January paycheck.

There is precedent for Congress acting late. In February 2019, Congress passed a 1.9 percent raise that was retroactive to January. None of this is law yet, so nothing about the 2027 raise is final.

How the Premium Increase Fits In

OPM’s Open Season highlights for the 2027 plan year show that the enrollee share of FEHB premiums rises 10.9 percent on average in January. If the raise ends up being zero, that premium increase comes out of a flat paycheck.

Three Open Season Tips

• Do not assume staying put is free. About 95 percent of federal employees never change plans, but this year the premium changes are significant. MHBP Standard is up 63 percent for self only and 105 percent for self plus one, and its Value and Consumer options are gone. If you are in one of those options and do nothing, you land in Standard at those prices.
• Read the “Changes for 2027” section of your brochure. Section Two of your plan brochure explains what is changing, and Federal News Network’s October 23 reporting on FEHB changes for 2027 is a helpful companion.
• Re-enroll in FSAFEDS. It does not renew automatically, so you must re-enroll every year. The limit is $3,500, and there is a new debit card.

Open Season closes December 14.

Your Right to Contact Congress

Federal employees have a protected right to contact Congress under 5 U.S.C. § 7211. If you choose to use it, do so on your own time and on your own phone, never on government time or equipment.

What to Do Next

Open your plan brochure this week rather than waiting until December, and watch what happens with the funding bill, since that is where the raise will be decided. We would like to hear your prediction in the comments on our video: zero, 3 percent, or 4.1?

Legal Disclaimer: This content is for general informational purposes only and does not constitute legal advice. Federal employment situations are fact-specific and time-sensitive. Please consult a qualified federal employment attorney about your specific situation. You can contact Southworth PC at attorneysforfederalemployees.com.