This Act may be cited as the Federal Adjustment of Income Rates Act or the FAIR Act.

(a) Statutory pay systems For calendar year 2026, the percentage adjustment under section 5303 of title 5, United States Code, in the rates of basic pay under the statutory pay systems (as defined in section 5302 of title 5, United States Code) shall be 3.3 percent. (b) Prevailing rate employees Notwithstanding the wage survey requirements under section 5343(b) of title 5, United States Code, for fiscal year 2026, the rates of basic pay (as in effect on the last day of fiscal year 2025 under section 5343(a) of such title) for prevailing rate employees in each wage area and the rates of basic pay under sections 5348 and 5349 of such title shall be increased by 3.3 percent.

For calendar year 2026, the percentage adjustment under section 5304 of title 5, United States Code, shall be an increase of 1 percent.