The latest cost-of-living adjustment is now active for postal employees. Here’s what it means for your paycheck, how it compares to previous COLAs under the current contracts, and when to expect the next one.
What Changed
APWU (Clerks, Maintenance, MVS, Support Services): Career employees received a $0.12 per hour increase, which equals $250 annually. This is the third COLA under the 2024-2027 National Agreement. It took effect March 7, 2026, and appeared in paychecks dated March 27 (Pay Period 07).
NALC (City Carriers): Career letter carriers also received a $250 annual COLA. This was the sixth and final COLA under the 2023-2026 National Agreement. The increase was added to every step in Table 1 and to Step P in Table 2, then applied proportionately to Steps B through O in Table 2.
PSEs and CCAs: Non-career employees do not receive COLA adjustments directly. However, COLAs are added to the base pay schedule, so PSEs will benefit from these increases when they convert to career status. PSEs have received separate step increases under the 2024 contract to partially offset not getting COLAs.
How Much Does $250 Actually Add to Your Check?
Let’s be honest — $250 annually is modest. That works out to about $9.62 per pay period before taxes. After deductions, you’re looking at roughly $6-7 more in your net pay every two weeks.
But COLAs compound. They’re added to your base pay permanently, which means every future raise, overtime hour, penalty time hour, night differential, and Sunday premium is calculated on the new higher base. It also raises your high-3 average for retirement purposes.
Cumulative COLA Under the APWU 2024-2027 Contract
This is the third of six scheduled COLAs under the APWU contract. Here’s the running total so far:
March 2025 (1st COLA): $0.19/hr — $395 annually
September 2025 (2nd COLA): $0.39/hr — $811 annually
March 2026 (3rd COLA): $0.12/hr — $250 annually
Cumulative total: $0.70/hr — $1,456 annually
That’s nearly $1,500 in annual base pay increases from COLAs alone, on top of the general wage increases negotiated in the contract. APWU is the only postal union that has maintained full COLA in its contract — meaning there’s no cap on the adjustment amount.
NALC Cumulative Raises Under the 2023-2026 Contract
For city carriers, this March 2026 COLA was the final adjustment under the current agreement. Over the full 36-month contract, active carriers saw an average total increase of 19.5 percent when you combine general wage increases, COLAs, and step increases. City carrier starting wages rose 14.1 percent, and every step increased by at least 9.2 percent.
With the current NALC contract expiring in 2026 and USPS facing a serious financial crisis, the next round of negotiations will be closely watched. Formal bargaining opened on February 25, 2026.
When Is the Next COLA?
APWU: The fourth COLA under the 2024-2027 contract will be based on the July 2026 CPI-W index. It will be effective September 5, 2026 (Pay Period 20-2026), with the increase appearing in paychecks dated September 25, 2026.
NALC: Since the March 2026 COLA was the final one under the current agreement, the next COLA for carriers depends on what’s negotiated in the new contract. Negotiations are underway now.
Other Pay Changes Coming in 2026
The COLA isn’t the only pay-related change this year. Under the APWU 2024-2027 contract, several other adjustments are scheduled:
Night shift differential increase: An additional 2.0% bump effective September 19, 2026 (PP21). This is on top of the 4.0% increase that already took effect in September 2025.
Grade 3 upgrade: All Grade 3 positions will be upgraded to Grade 4 effective September 19, 2026 (PP21). This is a significant bump for custodial employees.
New top steps: Additional top steps will be added for Grades 4-7 effective September 19, 2026 (PP21), giving longer-serving employees in those grades room to continue climbing.
APWU retroactive pay: Back pay for the period from the first general wage increase (November 16, 2024) through August 22, 2025 is scheduled to be paid on paychecks dated April 10, 2026. If you’re owed retro pay, that check could be substantial.
See Your Updated Pay
Our pay calculator already reflects the March 7, 2026 COLA for all APWU grades and steps. Plug in your craft, grade, and step to see your exact take-home pay with the new rates.
Updated with March 2026 COLA rates for all crafts. See exactly what your check looks like now.
Calculate Your Take-Home Pay →Sources: APWU Third COLA Announcement, NALC Sixth COLA Announcement, APWU March 2026 Pay Scales (PDF).