Gov't Employee Raises & Retiree COLA.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1054

Short Title: Gov't Employee Raises & Retiree COLA. (Public)
Sponsors: Representatives Logan, Hawkins, Price, and Rubin (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
April 28, 2026
*H1054-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO APPROPRIAT E FUNDS TO RAISE SAL ARIES FOR PUBLIC SCH OOL 2
EMPLOYEES AND STATE EMPLOYEES, TO ENHANC E STATE EMPLOYEE SIC K 3
LEAVE BENEFITS, AND TO PROVIDE A COST -OF-LIVING ADJUSTMENT F OR 4
CERTAIN RETIREES. 5
The General Assembly of North Carolina enacts: 6
7
PART I. PUBLIC SCHOOL EMPLOYEES 8
9
TEACHER SALARY SCHEDULE 10
SECTION 1.1.(a) The following monthly teacher salary schedule shall apply for the 11
2026-2027 fiscal year to licensed personnel of the public schools who are classified as teachers. 12
The salary schedule is based on years of teaching experience. 13
2026-2027 Teacher Monthly Salary Schedule 14
Years of Experience "A" Teachers 15
0 $4,469 16
1 $4,551 17
2 $4,633 18
3 $4,714 19
4 $4,796 20
5 $4,878 21
6 $4,983 22
7 $5,083 23
8 $5,181 24
9 $5,280 25
10 $5,379 26
11 $5,477 27
12 $5,576 28
13 $5,675 29
14 $5,774 30
15-24 $5,873 31
25+ $6,099 32
SECTION 1.1.(b) Salary Supplements for Teachers Paid on This Salary Schedule. 33
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General Assembly Of North Carolina Session 2025
Page 2 House Bill 1054-First Edition
(1) Licensed teachers who have NBPTS certification shall receive a salary 1
supplement each month of twelve percent (12%) of their monthly salary on 2
the "A" salary schedule. 3
(2) Licensed teachers who are classified as "M" teachers shall receive a salary 4
supplement each month of ten percent (10%) of their monthly salary on the 5
"A" salary schedule. 6
(3) Licensed teachers with li censure based on academic preparation at the 7
six-year degree level shall receive a salary supplement of one hundred 8
twenty-six dollars ($126.00) per month in addition to the supplement provided 9
to them as "M" teachers. 10
(4) Licensed teachers with licensure based on academic preparation at the 11
doctoral degree level shall receive a salary supplement of two hundred 12
fifty-three dollars ($253.00) per month in addition to the supplement provided 13
to them as "M" teachers. 14
(5) Certified school nurses shall receive a salary supplement each month of ten 15
percent (10%) of their monthly salary on the "A" salary schedule. 16
(6) School counselors who are licensed as counselors at the master's degree level 17
or higher shall receive a salary supplement each month of one hundred dollars 18
($100.00). 19
SECTION 1.1.(c) For school psychologists, school speech pathologists who are 20
licensed as speech pathologists at the master's degree level or higher, and school audiologists 21
who are licensed as audiologists at the master's degree level or higher, the following shall apply: 22
(1) The first step of the salary schedule shall be equivalent to the sixth step of the 23
"A" salary schedule. 24
(2) These employees shall receive the following salary supplements each month: 25
a. Ten percent (10%) of their mont hly salary, excluding the supplement 26
provided pursuant to sub-subdivision b. of this subdivision. 27
b. Three hundred fifty dollars ($350.00). 28
(3) These employees are eligible to receive salary supplements equivalent to those 29
of teachers for academic preparat ion at the six -year degree level or the 30
doctoral degree level. 31
(4) The twenty -sixth step of the salary schedule shall be seven and one -half 32
percent (7.5%) higher than the salary received by these same employees on 33
the twenty-fifth step of the salary schedule. 34
SECTION 1.1.(d) Beginning with the 2014 -2015 fiscal year, in lieu of providing 35
annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those 36
longevity payments are included in the monthly amounts under the teacher salary schedule. 37
SECTION 1.1.(e) A teacher compensated in accordance with this salary schedule 38
for the 2026-2027 school year shall receive an amount equal to the greater of the following: 39
(1) The applicable amount on the salary schedule for the applicable school year. 40
(2) For teachers who were eligible for longevity for the 2013 -2014 school year, 41
the sum of the following: 42
a. The salary the teacher received in the 2013-2014 school year pursuant 43
to Section 35.11 of S.L. 2013-360. 44
b. The longevity that the teacher would have received under the longevity 45
system in effect for the 2013 -2014 school year provided in Section 46
35.11 of S.L. 2013-360 based on the teacher's current years of service. 47
c. The annual bonus provided in Section 9.1(e) of S.L. 2014-100. 48
(3) For teachers who were not eligible for longevity for the 2013 -2014 school 49
year, the sum of the salary and annual bonus the teacher received in the 50
2014-2015 school year pursuant to Section 9.1 of S.L. 2014-100. 51
General Assembly Of North Carolina Session 2025
House Bill 1054-First Edition Page 3
SECTION 1.1.(f) As used in this section, the term "teacher" shall also include 1
instructional support personnel. 2
3
PRINCIPAL SALARY SCHEDULE 4
SECTION 1.2.(a) The following annual salary schedule for principals shall apply 5
for the 2026-2027 fiscal year, beginning July 1, 2026: 6
2026-2027 Principal Annual Salary Schedule 7
Avg. Daily Membership Base Met Growth Exceeded Growth 8
0-200 $84,793 $93,271 $101,752 9
201-400 $89,032 $97,935 $106,839 10
401-700 $93,271 $102,600 $111,927 11
701-1,000 $97,512 $107,263 $117,015 12
1,001-1,600 $101,752 $111,927 $122,102 13
1,601+ $105,991 $116,590 $127,189 14
A principal's placement on the salary schedule shall be determined according to the 15
average daily membership of the school supervised by the principal, as described in subsection 16
(b) of this section, and the school growth scores, calculat ed pursuant to G.S. 115C-83.15(c), for 17
each school the principal supervised in at least two of the prior three school years, as described 18
in subsection (c) of this section, regardless of a break in service, and provided the principal 19
supervised each school as a principal for at least a majority of the school year, as follows: 20
(1) A principal shall be paid according to the Exceeded Growth column of the 21
schedule if the school growth scores show the school or schools exceeded 22
expected growth in at least two of the prior three school years. 23
(2) A principal shall be paid according to the Met Growth column of the schedule 24
if any of the following apply: 25
a. The school growth scores show the school or schools met expected 26
growth in at least two of the prior three school years. 27
b. The school growth scores show the school or schools met expected 28
growth in at least one of the prior three school years and exceeded 29
expected growth in one of the prior three school years. 30
c. The principal supervised a school in at least two of the prior three 31
school years that was not eligible to receive a school growth score. 32
(3) A principal shall be paid according to the Base column if any of the following 33
apply: 34
a. The school growth scores show the school or schools did not meet 35
expected growth in at least two of the prior three school years. 36
b. The principal has not supervised any school as a principal for a 37
majority of the school year in at least two of the prior three school 38
years. 39
SECTION 1.2.(b) For purposes of determining the average daily membership of a 40
principal's school, the allotted average daily membership for the school for the applicable school 41
year shall be used. For purposes of this section, the allotted average daily membership of a 42
principal's school shall include any prekindergarten students in membership at that school. 43
SECTION 1.2.(c) For purposes of determining the school growth scores for each 44
school the principal supervised in one or more prior school years, the following scho ol growth 45
scores shall be used during the following time periods: 46
(1) For the first six months of the applicable fiscal year, the school growth scores 47
from the first, second, and third years. 48
(2) For the second six months of the applicable fiscal year, the school growth 49
scores from the second, third, and fourth years. 50
General Assembly Of North Carolina Session 2025
Page 4 House Bill 1054-First Edition
(3) If a principal does not have a school growth score from any of the school years 1
identified in this subsection, the most recent available growth scores, up to the 2
fourth year, shall be used. 3
SECTION 1.2.(d) Beginning with the 2017 -2018 fiscal year, in lieu of providing 4
annual longevity payments to principals paid on the principal salary schedule, the amounts of 5
those longevity payments are included in the annual amounts under the principal salary schedule. 6
SECTION 1.2.(e) A principal compensated in accordance with this section for the 7
2026-2027 fiscal year shall receive an amount equal to the greater of the following: 8
(1) The applicable amount on the principal salary schedule for the applic able 9
fiscal year. 10
(2) For principals who were eligible for longevity in the 2016 -2017 fiscal year, 11
the sum of the following: 12
a. The salary the principal received in the 2016-2017 fiscal year pursuant 13
to Section 9.1 or Section 9.2 of S.L. 2016-94. 14
b. The longevity that the principal would have received as provided for 15
State employees under the North Carolina Human Resources Act for 16
the 2016 -2017 fiscal year based on the principal's current years of 17
service. 18
(3) For principals who were not eligible for longev ity in the 2016 -2017 fiscal 19
year, the salary the principal received in the 2016-2017 fiscal year pursuant to 20
Section 9.1 or Section 9.2 of S.L. 2016-94. 21
SECTION 1.2.(f) For purposes of this section, the following definitions apply: 22
(1) First year. – The school year immediately preceding the second year. 23
(2) Fourth year. – The school year immediately preceding the applicable school 24
year. 25
(3) Second year. – The school year immediately preceding the third year. 26
(4) The applicable fiscal year. – The 2026-2027 fiscal year. 27
(5) The applicable school year. – The 2026-2027 school year. 28
(6) Third year. – The school year immediately preceding the fourth year. 29
30
ASSISTANT PRINCIPAL SALARIES 31
SECTION 1.3.(a) For the 2026-2027 fiscal year, beginning July 1, 2026, assista nt 32
principals shall receive a monthly salary based on the salary schedule for teachers who are 33
classified as "A" teachers plus nineteen percent (19%). An assistant principal shall be placed on 34
the step on the salary schedule that reflects the total number of years of experience as a certified 35
employee of the public schools. For purposes of this section, an administrator with a one -year 36
provisional assistant principal's certificate shall be considered equivalent to an assistant principal. 37
SECTION 1.3.(b) Assistant principals with certification based on academic 38
preparation at the six -year degree level shall be paid a salary supplement of one hundred 39
twenty-six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary 40
supplement of two hundred fifty-three dollars ($253.00) per month. 41
SECTION 1.3.(c) Participants in an approved full -time master's in school 42
administration program shall receive up to a 10-month stipend during the internship period of the 43
master's program. The stipend sh all be at the beginning salary of an assistant principal or, for a 44
teacher who becomes an intern, at least as much as that person would earn as a teacher on the 45
teacher salary schedule. The North Carolina Principal Fellows Program or the school of education 46
where the intern participates in a full-time master's in school administration program shall supply 47
the Department of Public Instruction with certification of eligible full-time interns. 48
SECTION 1.3.(d) Beginning with the 2017 -2018 fiscal year, in lieu of providing 49
annual longevity payments to assistant principals on the assistant principal salary schedule, the 50
General Assembly Of North Carolina Session 2025
House Bill 1054-First Edition Page 5
amounts of those longevity payments are included in the monthly amounts provided to assistant 1
principals pursuant to subsection (a) of this section. 2
SECTION 1.3.(e) An assistant principal compensated in accordance with this section 3
for the 2026-2027 fiscal year shall receive an amount equal to the greater of the following: 4
(1) The applicable amount on the salary schedule for the applicable year. 5
(2) For assistant principals who were eligible for longevity in the 2016-2017 fiscal 6
year, the sum of the following: 7
a. The salary the assistant principal received in the 2016-2017 fiscal year 8
pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94. 9
b. The longevity that the assistant principal would have received as 10
provided for State employees under the North Carolina Human 11
Resources Act for the 2016 -2017 fiscal year based on the assistant 12
principal's current years of service. 13
(3) For assistant principals who were not eligible for longevity in the 2016 -2017 14
fiscal year, the salary the assistant principal received in the 2016 -2017 fiscal 15
year pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94. 16
17
CENTRAL OFFICE SALARIES 18
SECTION 1.4.(a) For the 2026-2027 fiscal year, beginning July 1, 2026, the annual 19
salary for superintendents, assistant superintendents, associate superintendents, 20
directors/coordinators, supervisors, and finance officers whose salaries are supported from State 21
funds shall be increased by nine percent (9%). 22
SECTION 1.4.(b) The monthly salary maximums that follow apply to assistant 23
superintendents, associate superintendents, directors/coordinators, supervisors, and finance 24
officers for the 2026-2027 fiscal year, beginning July 1, 2026: 25
2026-2027 Fiscal Year 26
Maximum 27
School Administrator I $8,255 28
School Administrator II $8,746 29
School Administrator III $9,267 30
School Administrator IV $9,629 31
School Administrator V $10,014 32
School Administrator VI $10,607 33
School Administrator VII $11,031 34
The local board of education shall determine the appropriate category and placement 35
for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or 36
finance officer within the maximums and within funds appropriated by the General Asse mbly 37
for central office administrators and superintendents. The category in which an employee is 38
placed shall be included in the contract of any employee. 39
SECTION 1.4.(c) The monthly salary maximums that follow apply to 40
superintendents for the 2026-2027 fiscal year, beginning July 1, 2026: 41
2026-2027 Fiscal Year 42
Maximum 43
Superintendent I $11,692 44
Superintendent II $12,389 45
Superintendent III $13,133 46
Superintendent IV $13,923 47
Superintendent V $14,760 48
The local board of education shall determine the appropriate category and placement 49
for the superintendent based on the average daily membership of the local school administrative 50
General Assembly Of North Carolina Session 2025
Page 6 House Bill 1054-First Edition
unit and within funds appropriated by the General Assembly for central office administrators and 1
superintendents. 2
SECTION 1.4.(d) Longevity pay for superintendents, assistant superintendents, 3
associate superintendents, directors/coordinators, supervisors, and finance officers shall be as 4
provided for State employees under the North Carolina Human Resources Act. 5
SECTION 1.4.(e) Superintendents, assistant superintendents, associate 6
superintendents, directors/coordinators, supervisors, and finance officers with certification based 7
on academic preparation at the six -year degree level shall receive a salary supplement of one 8
hundred twenty -six dollars ($126.00) per month in addition to the compensation provided 9
pursuant to this section. Superintendents, assistant superintendents, associate superintendents, 10
directors/coordinators, super visors, and finance officers with certification based on academic 11
preparation at the doctoral degree level shall receive a salary supplement of two hundred 12
fifty-three dollars ($253.00) per month in addition to the compensation provided for under this 13
section. 14
SECTION 1.4.(f) The State Board of Education shall not permit local school 15
administrative units to transfer State funds from other funding categories for salaries for public 16
school central office administrators. 17
18
NONCERTIFIED PERSONNEL SALARIES 19
SECTION 1.5. For the 2026 -2027 fiscal year, beginning July 1, 2026, the annual 20
salary for noncertified public school employees whose salaries are supported from State funds 21
shall be increased as follows: 22
(1) For permanent, full-time employees on a 12-month contract, by nine percent 23
(9%). 24
(2) For the following employees, by an equitable amount based on the amount 25
specified in subdivision (1) of this section: 26
a. Permanent, full -time employees on a contract for fewer than 12 27
months. 28
b. Permanent, part-time employees. 29
c. Temporary and permanent hourly employees. 30
31
STATE AGENCY TEACHERS 32
SECTION 1.6. For the 2026-2027 fiscal year, employees of schools operated by the 33
Department of Health and Human Services, the Department of Public Safety, the Department of 34
Adult Correction, and the State Board of Education who are paid on the teacher salary schedule 35
shall be paid as authorized under this act. 36
37
APPROPRIATION 38
SECTION 1.7. There is appropriated from the General Fund to the Department of 39
Public Instruction the sum of nine hundred thirty -nine million eight hundred thousand dollars 40
($939,800,000) in recurring funds for the 2026-2027 fiscal year to provide the compensation 41
increases for public school employees authorized in this Part. 42
43
PART II. STATE EMPLOYEES/INCREASE/SICK LEAVE 44
45
SEVEN PERCENT LEGISLATIVE SALARY INCREASE AWARDED TO ELIGIBLE 46
STATE-FUNDED EMPLOYEES 47
SECTION 2.1.(a) Effective July 1, 2026, except as provided by subsection (b) of 48
this section, a person (i) whose salary is set by this Part, pursuant to the North Carolina Human 49
Resources Act, or as otherwise authorized in this act and (ii) who is employed in a State-funded 50
General Assembly Of North Carolina Session 2025
House Bill 1054-First Edition Page 7
position on June 30, 2026, is awarded a legislative salary increase in the 2026 -2027 fiscal year, 1
as follows: 2
(1) A cost-of-living adjustment in the amount of seven percent (7%). 3
(2) Any other salary adjustment otherwise allowed or provided by law. 4
SECTION 2.1.(b) Effective July 1, 2026, the following persons are not eligible to 5
receive the legislative salary increases provided by subsection (a) of this section: 6
(1) Employees of local boards of education. 7
(2) Local community college employees. 8
(3) Employees of The University of North Carolina. 9
(4) Clerks of superior court compensated under G.S. 7A-101. 10
(5) Officers and employees to which Section 2.13 of this Part applies. 11
(6) Officers and employees to which Section 2.14 of this Part applies. 12
(7) Officers and employees to which Section 2.15 of this Part applies. 13
(8) Officers and employees to which Section 2.16 of this Part applies. 14
(9) Employees of schools operated by the Department of Health and Human 15
Services, the Department of Public Safety, t he Department of Adult 16
Correction, the Governor Morehead School for the Blind, the Eastern North 17
Carolina School for the Deaf, the North Carolina School for the Deaf, and the 18
State Board of Education who are paid based on the teacher salary schedule. 19
SECTION 2.1.(c) Part-time employees shall receive the increases authorized by this 20
section on a prorated and equitable basis. 21
SECTION 2.1.(d) No eligible State -funded employee shall be prohibited from 22
receiving the full salary increases provided in this secti on solely because the employee's salary 23
after applying the legislative salary increase is above the maximum of the salary range prescribed 24
by the State Human Resources Commission. 25
26
GOVERNOR AND COUNCIL OF STATE 27
SECTION 2.2.(a) Effective July 1, 2026, G.S. 147-11(a) reads as rewritten: 28
"§ 147-11. Salary and expense allowance of Governor; allowance to person designated to 29
represent Governor's office. 30
(a) The salary of the Governor shall be two hundred three thousand seventy-three dollars 31
($203,073) two hundred seventeen thousand two hundred eighty-eight dollars ( $217,288) 32
annually, payable monthly." 33
SECTION 2.2.(b) Effective July 1, 2026, the annual salaries for members of the 34
Council of State, payable monthly, are set as follows: 35
Council of State Annual Salary 36
Lieutenant Governor $180,171 37
Attorney General $180,171 38
Secretary of State $180,171 39
State Treasurer $180,171 40
State Auditor $180,171 41
Superintendent of Public Instruction $180,171 42
Agriculture Commissioner $180,171 43
Insurance Commissioner $180,171 44
Labor Commissioner $180,171 45
46
CERTAIN EXECUTIVE BRANCH OFFICIALS 47
SECTION 2.3. Effective July 1, 2026, the annual salaries, payable monthly, for the 48
following executive branch officials are as follows: 49
Executive Branch Officials Annual Salary 50
Chairman, Alcoholic Beverage Control Commission $150,703 51
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Page 8 House Bill 1054-First Edition
State Controller $209,847 1
Commissioner of Banks $169,141 2
Chair, Board of Review, Division of Employment Security $165,909 3
Members, Board of Review, Division of Employment Security $163,881 4
Chairman, Parole Commission $165,909 5
Full-time Members of the Parole Commission $153,399 6
Chairman, Utilities Commission $188,069 7
Members of the Utilities Commission $169,141 8
Executive Director, North Carolina Agricultural Finance Authority $146,762 9
State Fire Marshal $148,784 10
11
JUDICIAL BRANCH 12
SECTION 2.4.(a) Effective July 1, 2026, the annual salaries, payable monthly, for 13
the following judicial branch officials are as follows: 14
Judicial Branch Officials Annual Salary 15
Chief Justice, Supreme Court $217,288 16
Associate Justice, Supreme Court $211,648 17
Chief Judge, Court of Appeals $208,301 18
Judge, Court of Appeals $202,894 19
Judge, Senior Regular Resident Superior Court $186,448 20
Judge, Superior Court $180,964 21
Chief Judge, District Court $179,276 22
Judge, District Court $174,003 23
Chief Administrative Law Judge $154,868 24
District Attorney $179,051 25
Assistant Administrative Officer of the Courts $162,442 26
Public Defender $179,051 27
Director of Indigent Defense Services $180,365 28
SECTION 2.4.(b) The district attorney of a judicial district, with the approval of the 29
Administrative Officer of the Courts, and the public defender of a judicial district, with the 30
approval of the Commission on Indigent Defense Services, shall set the salaries of assis tant 31
district attorneys and assistant public defenders in that district such that the average salary of 32
those assistants in that district does not exceed one hundred eight thousand three hundred ninety 33
dollars ($108,390) and the minimum salary of any assis tant is at least fifty -eight thousand one 34
hundred seventy-five dollars ($58,175), effective July 1, 2026. 35
36
CLERKS OF SUPERIOR COURT 37
SECTION 2.5. Effective July 1, 2026, G.S. 7A-101(a) reads as rewritten: 38
"§ 7A-101. Compensation. 39
(a) The clerk of superior court is a full -time employee of the State and shall receive an 40
annual salary, payable in equal monthly installments, based on the number of State -funded 41
assistant and deputy clerks of court as determined by the Administrative Office of Court's 42
workload formula, according to the following schedule: 43
Assistants and Deputies Annual Salary 44
0-19 $111,726$119,547 45
20-29 123,488$132,132 46
30-49 135,248$144,175 47
50-99 147,010$157,301 48
100 and above 149,949$160,445 49
If the number of State -funded assistant and deputy cler ks of court as determined by the 50
Administrative Office of Court's workload formula changes, the salary of the clerk shall be 51
General Assembly Of North Carolina Session 2025
House Bill 1054-First Edition Page 9
changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate 1
for that new number, except that the salary of an incumbent clerk shall not be decreased by any 2
change in that number during the clerk's continuance in office." 3
4
ASSISTANT AND DEPUTY CLERKS OF COURT 5
SECTION 2.6. Effective July 1, 2026, G.S. 7A-102(c1) reads as rewritten: 6
"(c1) A full-time assistant clerk or a full-time deputy clerk, and up to one full-time deputy 7
clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the 8
following minimum and maximum rates: 9
10
Assistant Clerks and Head Bookkeeper Annual Salary 11
Minimum $40,482$43,316 12
Maximum 74,792$80,027 13
14
Deputy Clerks Annual Salary 15
Minimum $36,315$38,857 16
Maximum 58,740$62,852" 17
18
MAGISTRATES 19
SECTION 2.7. Effective July 1, 2026, G.S. 7A-171.1(a)(1) reads as rewritten: 20
"(1) A full-time magistrate shall be paid the annual salary indicated in the table set 21
out in this subdivision. A full-time magistrate is a magistrate who is assigned 22
to work an average of not less than 40 hours a week during the term of office. 23
The Administrative Officer of the Courts shall designate whether a magistrate 24
is full-time. Initial appointment shall be at the entry rate. A magistrate's salary 25
shall increase to the next step every two years on the anniversary of the date 26
the magistrate was originally appointed for increases to Steps 1 through 3, and 27
every four years on the anniversary of the date the magistrate was originally 28
appointed for increases to Steps 4 through 6: 29
Table of Salaries of Full-Time Magistrates 30
Step Level Annual Salary 31
Entry Rate $47,228$50,534 32
Step 1 $50,714$54,264 33
Step 2 $54,475$58,288 34
Step 3 $58,457$62,549 35
Step 4 $63,228$67,654 36
Step 5 $68,973$73,801 37
Step 6 $75,415.$80,694." 38
39
LEGISLATIVE EMPLOYEES 40
SECTION 2.8.(a) Effective July 1, 2026, the annual salaries of the Legislative 41
Services Officer and of nonelected employees of the General Assembly in effect on June 30, 42
2026, shall be legislatively increased by seven percent (7%). 43
SECTION 2.8.(b) Nothing in this act limits any of the provisions of G.S. 120-32. 44
45
GENERAL ASSEMBLY PRINCIPAL CLERKS 46
SECTION 2.9. Effective July 1, 2026, G.S. 120-37(c) reads as rewritten: 47
"(c) The principal clerks shall be full -time officers. Each principal clerk shall be entitled 48
to other benefits available to permanent legislative employees and shall be paid an annual salary 49
of one hundred thirty -three thousand nine hundred thirty -six dollars ($133,936), one hundred 50
forty-three thousand three hundred twelve dollars ( $143,312), payable monthly. Each principal 51
General Assembly Of North Carolina Session 2025
Page 10 House Bill 1054-First Edition
clerk shall also receive such additional compensation as approved by the Speaker of the House 1
of Representatives or the President Pro Tempore of the Senate, respectively, for additional 2
employment duties beyond those provided by the rules of their House. The Legislative Services 3
Commission shall review the salary of the principal clerks prior to submission of the proposed 4
operating budget of the General Assembly to the Governor and shall make appropriate 5
recommendations for changes in tho se salaries. Any changes enacted by the General Assembly 6
shall be by amendment to this paragraph.subsection." 7
8
SERGEANTS-AT-ARMS AND READING CLERKS 9
SECTION 2.10. Effective July 1, 2026, G.S. 120-37(b) reads as rewritten: 10
"(b) The sergeant at arms and the reading clerk in each house shall be paid a salary of five 11
hundred twenty-eight dollars ($528.00) five hundred sixty-five dollars ($565.00) per week plus 12
subsistence at the same daily rate provided for members of the General As sembly, plus mileage 13
at the rate provided for members of the General Assembly for one round trip only from their 14
homes to Raleigh and return. The sergeants at arms shall serve during sessions of the General 15
Assembly and at such time prior to the convening of, and subsequent to adjournment or recess 16
of, sessions as may be authorized by the Legislative Services Commission. The reading clerks 17
shall serve during sessions only." 18
19
COMMUNITY COLLEGES 20
SECTION 2.11.(a) Effective July 1, 2026, the State Board of Community Colleges 21
shall provide community college faculty and non -faculty personnel with an across -the-board 22
salary increase in the amount of seven percent (7%). 23
SECTION 2.11.(b) Effective July 1, 2026, the minimum salaries for nine -month, 24
full-time curriculum community college faculty are as follows: 25
Educational Level Minimum Salary 26
Vocational Diploma/Certificate or Less $46,138 27
Associate Degree or Equivalent $46,780 28
Bachelor's Degree $49,563 29
Master's Degree or Education Specialist $52,033 30
Doctoral Degree $55,593 31
SECTION 2.11.(c) No full-time faculty member shall earn less than the minimum 32
salary for the faculty member's education level. The pro rata hourly rate of the minimum salary 33
for each education level shall be used to determine the minimum salary fo r part-time faculty 34
members. 35
36
THE UNIVERSITY OF NORTH CAROLINA 37
SECTION 2.12. Effective July 1, 2026, the Board of Governors of The University 38
of North Carolina shall provide SHRA employees, EHRA employees, and teachers employed by 39
the North Carolina School of Science and Mathematics with an across-the-board salary increase 40
in the amount of seven percent (7%). 41
42
CORRECTIONAL OFFICERS/YOUTH COUNSELORS/YOUTH COUNSELOR 43
TECHNICIANS/YOUTH SERVICES BEHAVIORAL SPECIALISTS – SALARY 44
SCHEDULE 45
SECTION 2.13.(a) Effective July 1, 2026, State employees serving as correctional 46
officers in the Department of Adult Correction shall be compensated at a specific pay rate on the 47
basis of a salary schedule determined according to the duration of the employee's correctional 48
officer work experience pursuant to the salary schedule in subsection (b) of this section. 49
SECTION 2.13.(a1) Effective July 1, 2026, State employees serving in the 50
Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention, shall be 51
General Assembly Of North Carolina Session 2025
House Bill 1054-First Edition Page 11
compensated at a specific pay rate set on the basis of a salary schedule determined according to 1
the duration of the employee's work experience, as follows: 2
(1) Youth Counselor Technicians shall be paid under the Correctional Officer I 3
salary schedule, as established in subsection (b) of this section. 4
(2) Youth Services Behavioral Specialists shall be paid under the Correctional 5
Officer II salary schedule, as established in subsection (b) of this section. 6
(3) Youth Counselors shall be paid under the Correct ional Officer III salary 7
schedule, as established in subsection (b) of this section. 8
SECTION 2.13.(b) Effective July 1, 2026, the following annual salary schedule will 9
apply under subsections (a) and (a1) of this section: 10
Experience COI COII COIII 11
0 $40,254 $41,579 $44,467 12
1 $43,071 $44,488 $47,581 13
2 $45,657 $47,205 $50,437 14
3 $47,939 $49,516 $52,959 15
4 $49,856 $51,497 $55,076 16
5 $51,353 $53,041 $56,728 17
6+ $52,380 $54,102 $57,863 18
SECTION 2.13.(c) If an employee will not receive a salary increase under this 19
section because the employee's salary exceeds the scheduled salary level, then the employee shall 20
receive an annual salary increase equal to the amount of the across -the-board legislative salary 21
increase authorized in this Part. 22
23
STATE HIGHWAY PATROL SALARY SCHEDULE 24
SECTION 2.14.(a) Effective July 1, 2026, law enforcement officers of the State 25
Highway Patrol compensated pursuant to an experience -based salary schedule shall be 26
compensated based on the officer's respective work experience pursuant to the salary schedule in 27
subsection (b) of this section. 28
SECTION 2.14.(b) Effective July 1, 2026, the following annual salary schedule 29
applies under subsection (a) of this section: 30
Years of Experience FY 2026-2027 31
0 $58,850 32
1 $62,675 33
2 $66,749 34
3 $71,088 35
4 $75,708 36
5 $80,629 37
6+ $85,870 38
SECTION 2.14.(c) If an employee will not receive a salary increase under this 39
section because the employee's salary exceeds the scheduled salary level, then the employee shall 40
receive an annual salary increase equal to the amount of th e across-the-board legislative salary 41
increase authorized in this Part. 42
43
STATE LAW ENFORCEMENT OFFICER SALARY SCHEDULE/INCREASES 44
SECTION 2.15.(a) Effective July 1, 2026, l aw enforcement officers of the State 45
Bureau of Investigation and Alcohol Law Enforce ment shall be compensated pursuant to an 46
experience-based salary schedule and shall be compensated based on the officer's respective 47
work experience pursuant to the salary schedule in subsection (b) of this section. 48
SECTION 2.15.(b) Effective July 1, 2026 , the following annual salary schedule 49
applies under subsection (a) of this section: 50
Years of Experience FY 2026-2027 51
General Assembly Of North Carolina Session 2025
Page 12 House Bill 1054-First Edition
0 $57,220 1
1 $60,941 2
2 $64,902 3
3 $69,121 4
4 $73,614 5
5 $78,399 6
6+ $83,495 7
SECTION 2.15.(c) If an employee will not receive a salary increase under this 8
section because the employee's salary exceeds the scheduled salary level, then the employee shall 9
receive an annual salary increase equal to the amount of the across -the-board legislative salary 10
increase authorized in this Part. 11
12
PROBATION AND PAROLE OFFICERS/JUVENILE COURT COUNSELORS – 13
SALARY SCHEDULE 14
SECTION 2.16.(a) Effective July 1, 2026, probation and parole officers shall be 15
compensated pursuant to the experience -based salary schedule based on the officer's respective 16
work experience, as established in subsection (b) of this section. 17
SECTION 2.16.(a1) Effective July 1, 2026, State employees serving in the 18
Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention, as 19
Juvenile Court Counselors shall be compensated under the probation and parole officer salary 20
schedule, as established in subsection (b) of this section. 21
SECTION 2.16.(b) Effective July 1, 2026, the following annual salary schedule 22
applies under subsections (a) and (a1) of this section: 23
Years of Experience FY 2026-2027 24
0 $48,602 25
1 $51,760 26
2 $55,126 27
3 $58,709 28
4 $62,525 29
5 $66,589 30
6+ $70,917 31
SECTION 2.16.(c) If an employee will not receive a salary increase under this 32
section because the employee's salary exceeds the scheduled salary level, then the employee shall 33
receive an annual salary increase equal to the amount of the across -the-board legislative salary 34
increase authorized in this Part. 35
36
MOST STATE EMPLOYEES 37
SECTION 2.17. Effective July 1, 2026, unless otherwise expressly provided by this 38
Part, the annual salaries in effect for the following persons on June 30, 2026, shall be legislatively 39
increased as provided by this act: 40
(1) Permanent, full -time State officials and persons whose salaries are set in 41
accordance with the North Carolina Human Resources Act. 42
(2) Permanent, full-time State officials and persons in positions exempt from the 43
North Carolina Human Resources Act. 44
(3) Permanent, part-time State employees. 45
(4) Temporary and permanent hourly State employees. 46
47
ALL STATE-SUPPORTED PERSONNEL 48
SECTION 2.18.(a) The legislative salary increases authorized by this act shall be 49
paid effective on July 1, 2026, and do not apply to persons separated from service due to 50
General Assembly Of North Carolina Session 2025
House Bill 1054-First Edition Page 13
resignation, dismissal, reduction in force, death, or retirement or whose last workday i s prior to 1
June 30, 2026. 2
SECTION 2.18.(b) The Director of the Budget is granted flexibility to administer 3
the compensation increases enacted by this act. The State employer contribution rates enacted by 4
this act for retirement and related benefits may be deemed by the Director of the Budget for 5
administrative purposes to become effective after July 1 to provide flexibility in the collection 6
and reconciliation of salary -related contributions as required by law, provided the estimated 7
amount contributed to any affected employee benefit trust equals the amount that would have 8
been contributed to the employee benefit trust if the enacted employer contribution rates had 9
been effective on July 1. 10
SECTION 2.18.(c) This section applies to all employees paid from State funds, 11
whether or not subject to or exempt from the North Carolina Human Resources Act, including 12
employees of public schools, community colleges, and The University of North Carolina. 13
14
USE OF FUNDS APPROPRIATED FOR LEGISLATIVELY MANDATED INCREASES 15
SECTION 2.19.(a) The Office of State Budget and Management shall ensure that 16
the appropriations made by this act for legislatively mandated salary increases and employee 17
benefits are used only for those purposes. 18
SECTION 2.19.(b) If the Director of the Budget determines that funds appropriated 19
to a State agency for legislatively mandated salary increases and employee benefits exceed the 20
amount required by that agency for those purposes, the Director may rea llocate those funds to 21
other State agencies that received insufficient funds for legislatively mandated salary increases 22
and employee benefits. 23
SECTION 2.19.(c) Funds appropriated for legislatively mandated salary and 24
employee benefit increases may not be used to adjust the budgeted salaries of vacant positions, 25
to provide salary increases in excess of those required by the General Assembly, or to increase 26
the budgeted salary of filled positions to the minimum of the position's respective salary range. 27
SECTION 2.19.(d) Any funds appropriated for legislatively mandated salary and 28
employee benefit increases in excess of the amounts required to implement the increases shall be 29
credited to the Pay Plan Reserve. 30
SECTION 2.19.(e) No later than May 1, 2027, the Office of State Budget and 31
Management shall report to the Fiscal Research Division on the expenditure of funds for 32
legislatively mandated salary increases and employee benefits. This report shall include at least 33
the following information for each State agency: 34
(1) The total amount of funds that the agency received for legislatively mandated 35
salary increases and employee benefits. 36
(2) The total amount of funds transferred from the agency to other State agencies 37
pursuant to subsection (b) of this section. This section of the report shall 38
identify the amounts transferred to each recipient State agency. 39
(3) The total amount of funds used by the agency for legislatively mandated salary 40
increases and employee benefits. 41
(4) The amount of funds credited to the Pay Plan Reserve. 42
43
APPROPRIATION 44
SECTION 2.20. Effective July 1, 2026, there is appropriated from the General Fund 45
the sum of nine hundred thirty -nine million eigh t hundred thousand dollars ($939,800,000) in 46
recurring funds for the 2026 -2027 fiscal year for the costs associated with implementing the 47
provisions of this Part. 48
49
ENHANCED SICK LEAVE 50
General Assembly Of North Carolina Session 2025
Page 14 House Bill 1054-First Edition
SECTION 2.21.(a) By January 1, 2027, the State Human Resources Commissi on 1
shall adopt rules to implement enhanced sick leave benefits for State employees, effective July 2
1, 2027, that provide for the following: 3
(1) Sick leave shall accrue at the rate of one hour per 20 hours worked, 4
commencing on the first day of employment. Accrued sick leave is cumulative 5
without limit. A State agency may loan time in advance of accrual not to 6
exceed the amount an employee can accumulate during the current calendar 7
year. 8
(2) If an employee is separated and rehired within 90 days by the same State 9
agency, previously accrued unused sick leave is reinstated. 10
(3) Permissible uses of sick leave shall include the following: 11
a. The employee's own physical or mental illness, injury, medical 12
condition, preventive care, or routine medical appointment; and 13
temporary disability due to childbirth or recovery therefrom. 14
b. Death of an immediate family member. 15
c. Donations to a member of the immediate family who is an approved 16
voluntary shared leave recipient. 17
d. Adoption of a child limited to a maximum of 30 days for each parent. 18
e. Absences related to the employee being the victim of domestic 19
violence, sexual assault, or stalking, taken for the purpose of medical 20
care, counseling, relocation, or legal proceedings. 21
f. The same uses as sub -subdivision a. of t his subdivision for an 22
immediate family member. 23
(4) For the purposes of this section, an "immediate family member" means (i) a 24
spouse, domestic or civil union partner, (ii) a parent, including a biological, 25
adoptive, or stepparent; a parent-in-law; or a person who stood in loco parentis 26
to the employee, (iii) a child, including a biological, adoptive, foster, or 27
stepchild; a child -in-law; a legal ward; or a person for whom the employee 28
stands in loco parentis, (iv) a brother or sister, including adoptive, step, half, 29
and in-law relationships, (v) a grandparent, great-grandparent, grandchild, or 30
great-grandchild, including step and in-law relationships thereto, and (vi) any 31
dependent living in the employee's household. 32
(5) If an employee or the employee's spouse, parent, or child has a serious illness 33
that qualifies under the federal Family Medical Leave Act (FMLA), the 34
FMLA provisions apply. If the illness does not qualify under FMLA, the 35
provisions of the State Human Resources Act (SHRA) apply. 36
(6) A State agency may require documentation when an employee absence 37
exceeds three consecutive working days, but the agency shall not require 38
disclosure of details beyond what is reasonably necessary to verify the 39
permissible purpose of the leave. Evidence to suppor t leave for 40
adoption-related purposes may be required. Sick leave shall be taken and 41
charged in units appropriate and consistent with agency operational needs. 42
Only scheduled work time shall be charged when calculating the amount of 43
leave taken. When exhau sting leave, an employee continues to accumulate 44
leave, is entitled to holidays, and remains eligible for salary increases. 45
(7) Nothing in this section shall be construed to affect existing rules and policies 46
concerning the transferability of sick leave or how sick leave is handled upon 47
separation and reinstatement unless specifically set forth in this section. 48
SECTION 2.21.(b) Nothing in this section shall be construed to modify the treatment 49
of sick leave for purposes of retirement credit under Chapter 135 of the General Statutes. 50
51
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House Bill 1054-First Edition Page 15
PART III. COST -OF-LIVING ADJUSTMENT FOR RETIREES OF THE TEAC HERS' 1
AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED 2
JUDICIAL RETIREMENT SYSTEM, THE LEGISLAT IVE RETIREMENT SYSTE M, 3
AND THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM 4
SECTION 3.1.(a) G.S. 135-5 is amended by adding a new subsection to read: 5
"(aaaa) Effective July 1, 202 6, the retirement allowance payable to, or on account of, 6
beneficiaries whose retirement commenced on or before July 1, 202 5, is increased by t hree 7
percent (3%) of the allowance payable on June 1, 2025, in accordance with subsection (o) of this 8
section. Effective July 1, 202 6, the retirement allowance payable to, or on account of, 9
beneficiaries whose retirement commenced after July 1, 202 5, but before June 30, 20 26, is 10
increased by a prorated amount of t hree percent (3%), as determined by the Board of Trustees 11
based upon the number of months that a retirement allowance was paid between July 1, 202 5, 12
and June 30, 2026." 13
SECTION 3.1.(b) G.S. 135-65 is amended by adding a new subsection to read: 14
"(ll) Effective July 1, 202 6, the retirement allowance payable to, or on account of, 15
beneficiaries whose retirement commenced on or before July 1, 202 5, is increased by t hree 16
percent (3%) of the allowance payable on June 1, 202 5. Effective July 1, 202 6, the retirement 17
allowance payable to, or on account of, beneficiaries whose retirement commenced after July 1, 18
2025, but before June 30, 20 26, is increased by a prorated amount of t hree percent (3%), as 19
determined by the Board of Trustees based upon the number of months that a retirement 20
allowance was paid between July 1, 2025, and June 30, 2026." 21
SECTION 3.1.(c) G.S. 120-4.22A is amended by adding a new subsection to read: 22
"(ff) In accordance with subsection (a) of this section, effective July 1, 2026, the retirement 23
allowance payable to, or on account of, beneficiaries whose retirement commenced on or before 24
January 1, 2026, is increased by t hree percent (3%) of the allowance pay able on June 1, 202 6. 25
Effective July 1, 2026, the retirement allowance payable to, or on account of, beneficiaries whose 26
retirement commenced after January 1, 2026, but before June 30, 2026, is increased by a prorated 27
amount of three percent (3%), as determined by the Board of Trustees based upon the number of 28
months that a retirement allowance was paid between January 1, 2026, and June 30, 2026." 29
SECTION 3.1.(d) G.S. 128-27 is amended by adding a new subsection to read: 30
"(hhh) Effective July 1, 202 6, the retirement allowance payable to, or on account of, 31
beneficiaries whose retirement commenced on or before July 1, 202 5, is increased by three 32
percent (3%) of the allowance payable on June 1, 2025, in accordance with subsection (k) of this 33
section. Effective July 1, 20 26, the retirement allowance payable to, or on account of , 34
beneficiaries whose retirement commenced after July 1, 20 25, but before June 30, 20 26, is 35
increased by a prorated amount of three percent (3%), as determined by the Board of Tru stees 36
based upon the number of months that a retirement allowance was paid between July 1, 20 25, 37
and June 30, 2026." 38
SECTION 3.2. There is appropriated from the General Fund to the Reserve for 39
Retiree Cost-of-Living Adjustments the sum of two hundred fifty million dollars ($250,000,000) 40
in recurring funds for the 2026-2027 fiscal year to implement this Part. 41
42
PART IV. EFFECTIVE DATE 43
SECTION 4. This act becomes effective July 1, 2026. 44