Pay, Pay and Benefits, Pay Information, Retroactive Pay 

The Postal Service has provided tentative dates for the additional negotiated pay provisions in the 2024-2027 National Agreement and the date of the retroactive payment for the pay increases due for the “stopgap” period of November 16, 2024, to August 22, 2025.

It was previously announced that the first general wage increases and cost-of-living adjustment (COLA) due under the agreement will be in effect starting August 23, 2025, which is Pay Period 19-2025 and will appear on paychecks dated September 12, 2025. This included a 1.3% increase for all employees, $395 COLA for career employees, and an additional 1% for PSEs who do not receive COLAs.

The following pay period, Pay Period 20-2025, which begins September 6, 2025, the second COLA under this contract of $811 will go into effect and then appear on paychecks dated September 26, 2025.

Dates for the following other pay provisions have also been announced:

• Upgrade of Grade 3 to Grade 4 Pay Period 24-2025 (begins November 1, 2025)

• Elimination of Step JJ for Grade 4 Pay Period 24-2025 (begins November 1, 2025)

• Elimination Step GG for PSEs converted to Career under the 24-Month MOU Pay Period 24-2025 (begins November 1, 2025)

• PSE new “steps” Pay Period 1-2026 (begins December 13, 2025).

For the above provisions, the Postal Service had until the start of Pay Period 3-2026 to implement these changes. These changes will be implemented four pay periods earlier than previously estimated. (PSE Steps will be implemented two pay periods earlier than previously estimated.)

Other pay structure implementation dates were set in negotiations. These include:

• Night Shift Differential Increase of 4.0% Pay Period 21-2025 (begins September 20, 2025)

• Night Shift Differential Increase of 2.0% Pay Period 21-2026 (begins September 19, 2026)

• Annual Leave Max Carryover Start of leave year Pay Period 3-2026 (begins January 10, 2026)

• Annual Leave Exchange Start of leave year Pay Period 3-2026 (begins January 10, 2026)

•  New top step for Grades 4-7 of the post-2010 pay scales Pay Period 21-2026 (begins September 19, 2026)

Due to the substantial amount of programming to the payroll systems that need to be completed by our union family in the IT/AS sector of the APWU, along with the updating of all employees PS Form 50s, and other records, the retroactive payments are tentatively scheduled to be made on paychecks dated April 10, 2026.

As stated above, the retroactive pay period will be from the date of the first general wage increase of November 16, 2024, through August 22, 2025. Any employee who has separated (retired, resigned, discharged, etc.) from the Postal Service and had work or paid leave during the retro period will also receive a retroactive check. It will be sent to their last office on record. Retired employees will also have their records with the Office of Personnel Management (OPM) updated by the Postal Service. Annuities will eventually be adjusted, but once the records are sent to OPM, it is up to OPM to adjust the annuity.

The APWU was the third contract settled in 2025 that requires retroactive payments. The processing of our payments follows the processing of the National Rural Letter Carriers Association (NLRCA), who has a particularly complex pay structure. The APWU still believes that our retroactive pay can be completed sooner than April 10, 2026, and we have already begun to press the Postal Service on the issue. The APWU is especially pleased that some of the pay structure changes will be implemented sooner than expected, giving our members more money in their pockets after implementation.

POSTED ON AUGUST 26, 2025