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Cost of living raise 2027

Updated

Prices rose 3.7% in the 12 months to September 2026 (BLS). Social Security benefits rise 3.6% in 2027. Employers plan raises of 3.5% on average, a little under inflation.

The 2027 numbers

Cost of living and pay increases for 2027
WhatRateSource date
Inflation, 12 months to September 2026 (CPI-U)3.7%Oct 14, 2026
Core inflation, without food and energy2.6%Oct 14, 2026
Social Security cost of living adjustment, 20273.6% (2.8% in 2026)Oct 14, 2026
Federal employees (General Schedule), proposed0%; 3.8% for law enforcementAug 26, 2026
Employers' raise budgets, 20273.5%Aug to Oct 2026
Wages and salaries, 12 months to September 20263.1%Oct 30, 2026

For federal employees, the President's pay plan keeps 2027 base and locality pay at 2026 rates, with a 3.8% increase for law enforcement through special rates. Congress can still set a different raise.

Is a cost of living raise required by law?

No. Federal law does not require raises above the federal minimum wage (U.S. Department of Labor). A cost of living raise is up to your employer, unless a contract or a union agreement sets one.

Cost of living raise or merit raise?

Employers' raise budgets cover every increase: merit raises, promotions and market adjustments. For 2027 they average 3.5%, and the merit part 3.0 to 3.2%. The budgets by survey and industry.

Inflation by region

Inflation over the 12 months to September 2026, by U.S. region (CPI-U)
RegionInflation
Northeast4.2%
Midwest4.2%
South3.4%
West3.4%
U.S.3.7%

How to ask for it

  1. Use inflation as your floor: 3.7%. Below it, your pay buys less than last year. Your raise after inflation.
  2. Check where your pay stands for your job and city.
  3. If you are below the median, ask for the gap. How much to ask for.

See where your pay stands for your job and city. Takes 30 seconds. Free, no sign-up.

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Questions

What is the cost of living raise for 2027?

There is no single figure for employees. Inflation was 3.7% over the 12 months to September 2026, and employers plan raises of 3.5% on average for 2027.

What is the Social Security COLA for 2027?

3.6%, announced by the Social Security Administration on October 14, 2026. It was 2.8% for 2026.

Do federal employees get a raise in 2027?

The President's plan of August 26, 2026 keeps General Schedule base and locality pay at 2026 rates, with 3.8% for law enforcement. Congress can still set a raise.

Are cost of living raises required by law?

No. Under the Fair Labor Standards Act, raises above the federal minimum wage are not required. A contract or union agreement can require one.

Sources