State employees, cost-of-living increase for fiscal year beginning October 1, 2026

HB 223 would provide a 2% salary increase for most Alabama state employees, effective October 1, 2026, covering those in classified/unclassified service, judicial personnel, legislative staff, and county health department employees under the state merit system. The increase applies to all eligible employees except those covered by existing labor contracts or local supplements tied to state salaries. Implementation requires state departments to revise pay plans and certify changes to the State Comptroller for processing. The bill does not create new appropriations but directs budgeting for the increase in the annual appropriations act.