HB223 • 2026

State employees, cost-of-living increase for fiscal year beginning October 1, 2026

Budget Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Givens
Last action: 2026-01-14
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

The official text states the bill becomes effective upon passage and approval, but metadata indicates it is currently pending committee action; therefore, the law has not yet taken effect.

HB223: State Employee Pay Increase for Fiscal Year Starting October 1, 2026

This bill provides a two percent salary increase to eligible state employees starting with the first payday on or after October 1, 2026.

What This Bill Does

Gives a two percent pay raise to eligible state workers beginning with the first paycheck on or after October 1, 2026.
Requires specific department directors and court officials to update their employee pay schedules to include this increase.
Directs these officials to send the updated pay plans to the State Comptroller so they can issue payment orders.
States that money for these raises must be included in future annual budget acts rather than being provided directly by this bill.

Who It Names or Affects

State employees listed in classified and unclassified services, including hourly workers.
Judicial personnel, officers, and employees of the state courts.
Legislative personnel, officers, and employees working for the Senate or House of Representatives.
Employees of county health departments who are paid from a budget agreed upon by the state.

Terms To Know

Cost-of-living increase: A raise in pay intended to help workers keep up with rising prices for goods and services.
State Comptroller: The state official responsible for managing money payments and issuing warrants (payment orders).

Limits and Unknowns

This bill does not apply to local pay supplements given to judges or other employees whose salaries are tied to those of state workers.
Employees covered by a labor agreement or contract do not receive this increase under the terms of this act.

Bill History

2026-01-14 House
Pending Committee Action in House of Origin
2026-01-14 House
Read for the first time and referred to the House Committee on Ways and Means General Fund

Official Summary Text

State employees, cost-of-living increase for fiscal year beginning October 1, 2026

Current Bill Text

Read the full stored bill text

HB223 INTRODUCED
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HB223
CXEBPJJ-1
By Representatives Givens, Reynolds, Hall
RFD: Ways and Means General Fund
First Read: 14-Jan-26
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EBO-DHC 01/10/2026 CXEBPJJ-1 (E) EBO-2025-86 MW
Page 1
First Read: 14-Jan-26
SYNOPSIS:
This bill would provide a cost-of-living
increase for state employees for the fiscal year
beginning October 1, 2026.
A BILL
TO BE ENTITLED
AN ACT
To provide a cost-of-living increase for state
employees for the fiscal year beginning October 1, 2026.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Beginning with the first pay day on or after
October 1, 2026, all state employees who are listed in the
classified and unclassified service of the state as defined in
Section 36-26-10, Code of Alabama 1975, and all other state
employees and hourly employees of the state, and all judicial
personnel, officers, and employees, and all legislative
personnel, officers, and employees, whether subject to the
State Merit System or not, and all employees of the county
health departments who are employed subject to the State Merit
System and whose compensation is paid out of a budget provided
and agreed upon by the state, county, or other contributing
agency under the direction of the State Board of Health shall
receive a salary increase of two percent.
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HB223 INTRODUCED
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receive a salary increase of two percent.
Section 2. (a) Any cost-of-living increase granted
under this act shall in no way apply to any local supplement
provided to any judges or to any other local employee whose
salary is tied to that of any state employee.
(b) This act shall not apply to any Merit System
employee or hourly employee whose service or rate of pay is
covered by any labor agreement or contract.
Section 3. The Director of the State Personnel
Department shall revise the schedule of rates set forth in the
pay plan for state employees and shall send the same to the
State Comptroller, who shall issue warrants in accordance
therewith. With respect to all court officials and employees
within the Unified Judicial System who serve the trial and
appellate courts of the state and the Administrative Office of
Courts, the Administrative Director of Courts shall revise the
schedule of rates set forth in the pay plan for these court
officials and employees to reflect the increase provided in
this act, and shall certify the same to the State Comptroller,
who shall issue warrants in accordance therewith. With respect
to employees of the Legislature, the Secretary of the Senate
for employees of the Senate, the Clerk of the House of
Representatives for employees of the House and the Director of
the Legislative Services Agency for employees of the
Legislative Services Agency shall revise the schedule of rates
set forth in the pay plan for their employees to reflect the
increase provided in this act and shall certify the same to
the State Comptroller, who shall issue warrants in accordance
therewith.
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HB223 INTRODUCED
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therewith.
Section 4. It is not the intent of this act to make
appropriations, but the appropriations required by this act
shall be made in the annual budget act for the affected
entities.
Section 5. This act shall become effective immediately
upon its passage and approval by the Governor, or upon its
otherwise becoming a law.
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