USPS COLA September 2026: $1,414 COLA Now Effective for APWU Employees

The latest APWU cost-of-living adjustment has been announced and is scheduled to take effect September 5. 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.

For career APWU employees, the COLA took effect in PP20 and is scheduled for the September 25 paycheck. PSEs do not receive this COLA. Phoenix Metro APWU COLA notice.

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 fourth of six scheduled COLAs under the APWU contract, and it changes the picture substantially:

Put that in perspective: the first three COLAs of this contract totaled $1,456 a year combined. This single adjustment is worth $1,414 — it nearly doubles the COLA money built into your base pay in one step. After the March COLA came in at a modest $250 and drew a lot of grumbling, this one lands very differently.

The reason is straightforward: COLAs track the CPI-W, and inflation ran hot through the spring of 2026, peaking around 4.4% on the twelve-month measure in May before easing to 3.4% by July. The six-month adjustment period ending with the July index captured that run-up. APWU is the only postal union that has kept full COLA in its contract — no cap on the adjustment — which is exactly what makes an inflationary stretch like this one pay off at the window and on the workroom floor.

PSEs: Postal Support Employees don’t receive COLAs while non-career — but every accrued COLA is folded into the career pay scale, so the full $2,870 is waiting in your rate the day you convert to career.

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.

What’s Next After September

APWU: Two COLAs remain under the 2024–2027 agreement, both in 2027, calculated the same way from the CPI-W. Separately, new top steps take effect September 19, 2026 (PP21-2026) for employees on the post-2010 lower-tier scales — Grade 4 extends to Step J, Grade 5 to Step L, and Grades 6 and 7 to Step M. If you’re on the newer tier and already at what used to be your ceiling, that’s a second raise landing two weeks after the COLA.

NALC: The March 2026 COLA was the final one under the expired agreement. The contract expired May 22, the statutory mediation window closed around July 21, and city carriers are waiting on either a negotiated deal or binding interest arbitration. Follow the NALC contract situation here.

NPMHU: Mail handlers moved to interest arbitration on August 12, 2026. Do not assume a raise amount, effective date, or retroactivity until the union publishes an award and official wage schedule. Mail handler pay details here.

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: This was a separate implementation item under the agreement, due no later than the first full pay period 180 days after ratification. It is already reflected in the current APWU schedule, which begins at Grade 4; it is not a September 19 change.

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 November 16, 2024 through August 22, 2025 was paid on paychecks dated April 10, 2026. If an expected payment was missing, check the earnings statement and contact payroll or the union.

Check the effective date before estimating pay

The calculator now uses the September 5 APWU annual and PTF schedules. Choose the correct employee status, appointment-date schedule, grade and step. PSE rates remain separate and do not receive the career COLA.

Current COLA source: APWU fourth COLA announcement (official page supplied by the owner).

Historical sources: APWU Third COLA Announcement, NALC Sixth COLA Announcement, APWU March 2026 Pay Scales (PDF).