FAIR Act

HR 7127, the FAIR Act, establishes pay adjustments for federal employees in 2025. It increases base pay by 4% for most federal workers under statutory pay systems and for "prevailing rate" employees (like those in specific geographic areas), while raising locality pay rates by 3.4%. The bill directly affects all federal employees receiving pay under these systems, as it modifies their 2025 salary calculations. These changes are based on statutory formulas under Title 5 of the U.S. Code, with no new policy mechanisms beyond the specified percentage increases. The adjustments apply to pay rates in effect as of the end of fiscal year 2024.