The US economy has seen a significant shift during Donald Trump’s first year in office. Looking ahead to 2026, some salaries are expected to increase. On the one hand, the Cost of Living Adjustment (COLA), which aims to offset the effects of inflation and maintain the purchasing power of millions of workers across the United States, has been set at 2.8% for next year. On the other hand, the Office of Personnel Management (OPM) confirmed the first details regarding the salary increase for federal employees in 2026.
According to the most recent reports from the Office of Personnel Management (OPM), most federal employees will receive a 1% raise in 2026
Inflation and the country’s economy are in a difficult position, exacerbated by the current government shutdown in the United States. This temporary shutdown resulted from the lack of agreement between Republicans and Democrats on a budget. It’s worth remembering that although Donald Trump’s party holds a majority in Congress, it still needs the 60 Democratic votes in the Senate. Thus, according to the most recent reports from the Office of Personnel Management (OPM) and an analysis by the Federal News Network, most federal employees will receive a 1% raise in 2026. And a Mercer survey concluded that the country’s entrepreneurs anticipate a “merit raise budget” (money set aside for salary increases) of 3.1%, compared to 3.2% this year.
The economic policies of the Trump administration, both domestically and internationally, intensify these economic fluctuations for U.S. citizens
The aforementioned survey also projects a 3.5% increase in the “total budget increase,” which refers to the overall increase in wages, by 2026. It’s important to understand that the economic policies of the Trump administration, both domestically and internationally, intensify these economic fluctuations for U.S. citizens. While 1% may seem modest, this increase occurs within a complex economic context, where inflation continues to impact household budgets, as we have been explaining.
The wage adjustment we’re discussing will take effect in January and is part of the annual plan for raises
Given the fluctuating outlook for 2025 and the decline in overall confidence in the U.S. economy, wage growth is a major concern for people. Hence, the importance for the federal government to try to maintain job stability and prevent a widening gap between public and private sector wages. The wage adjustment we’re discussing will take effect in January and is part of the annual plan for raises that aims to align federal employee compensation with the cost of living in the country. Therefore, wages for Americans are expected to grow steadily next year, with significant compensation changes projected for 2026.
It’s worth noting that in the United States, 30 states, in addition to the District of Columbia, have minimum wages higher than the federal amount of $7.26
How will this increase be reflected? Among US companies, most confirmed that the country’s economic factors will influence salary decisions for the next fiscal year, as is to be expected. In any case, the general 1% increase will not be applied uniformly to all workers. The Office of the Commissioner of Labor (OPL) has confirmed that some categories, such as law enforcement personnel, will receive special rates in 2026 due to the nature of their duties and the hazardous conditions of their work. It’s worth noting that in the United States, 30 states, in addition to the District of Columbia, have minimum wages higher than the federal amount of $7.26, a figure that has remained unchanged since 2009. Ultimately, the salary increase will be seen, as the goal is to align wages with local market conditions and ensure employee retention in areas with high demand or a high cost of living.
