Third Cost-of-Living Adjustment Announced

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In accordance with the 2024-2027 Collective Bargaining Agreement, career employees represented by the APWU will receive a $0.12 per hour cost-of-living adjustment (COLA), effective March 7, 2026.

The increase is the result of a rise in the Consumer Price Index (CPI-W). It will appear in paychecks dated March 27 (Pay Period 07-2026). The value of the COLA for full-time employees in each step and grade will increase by $250 annually, and the hourly rates for part-time employees will be adjusted accordingly.

The COLAs are in addition to general wage increases. This is the third cost-of-living increase under the 2024 contract. The first increase, effective March 8, 2025, amounted to $00.19 per hour or $395.00 annually. The second increase, effective September 06, 2025, was $0.39 per hour or $811 annually. The total cumulative COLAs received during the 2024-2027 National Agreement so far is $0.70 per hour, or $1,456 annually.

Because Postal Support Employees (PSEs) do not receive cost-of-living increases, new step increases have been created specifically for PSEs in addition to the general wage increases for all employees in the APWU bargaining unit under the 2024 contract. COLAs are added to the base pay schedule, so PSEs will see these increases when they convert to career status.

Rising inflation underscores the importance of our negotiated COLAs within our union contract, made possible by the strength of our membership. In our 2024-2027 contract, we fought to keep twice-a-year COLAs, our best protection against inflation. Postal workers are some of the few U.S. workers who receive COLA increases. Even in the postal world, we are the only postal union that has maintained full COLA in our union contract.

Visit our COLA Explainer Page

Visit our COLA Explainer Page for more information.

We’re aware that the COLA for this period may be a modest amount, and we understand members may have questions about why. We’ve created a video and page to specifically to address those questions — helping members understand what COLA is, how it’s calculated, and why it remains a unique and valuable feature of our union contract.

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COLA FAQs

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