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AlabamaSB1542026 Regular SessionSenateWALLET

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

Sponsored By: Greg Albritton (Republican)

Enacted

Appropriations

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Most Alabama state employees get 2% raises

Most Alabama state employees get a recurring 2% raise starting with the first payday on or after October 1, 2026. This covers classified, unclassified, hourly, judicial, and legislative employees, including those outside the State Merit System. It also covers county health department Merit System employees paid under State Board of Health funding arrangements. The raise excludes local supplements to judges and local employees whose salaries are tied to state pay. Merit System and hourly employees are excluded when a labor agreement or contract covers their service or pay. State personnel, payroll, court, and legislative offices must update pay plans. The law itself provides no funding for the raise; affected employers need funding through the annual budget act.

One-time bonuses for eligible public retirees

Eligible Employees’ Retirement System retirees and surviving beneficiaries get a one-time bonus, generally paid in October 2026. The rate is $1 per month for each credited service year, totaling $12 per service year paid once. Credited service includes applicable state police bonus and hazardous-duty credits. Retirees generally must have retired before October 1, 2025. Retirees and eligible beneficiaries must receive, or be entitled to, a monthly retirement allowance on September 30, 2026. Employers subject to the participation rule must opt in by official resolution by August 31, 2026, and fund the bonus. This funding requirement also applies to eligible surviving beneficiaries of retirees from those employers. Local units covering people who retired before the unit joined the system must opt in, fund bonuses, and supply service-year records. The retirement system’s board calculates costs, notifies employers, and administers payments. Participating employers can pay the full cost in a lump sum or through a higher employer contribution rate for the fiscal year beginning October 1, 2027. No bonus is payable if it harms Medicaid eligibility, including after a person applies for Medicaid.

Sponsors & Cosponsors

Sponsor

  • Greg Albritton

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 393 • No: 0

Senate vote • 4/8/2026

Albritton Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1227

Yes: 23 • No: 0 • Other: 1

House vote • 4/1/2026

Third Reading in Second House

Yes: 102 • No: 0

House vote • 4/1/2026

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1144

Yes: 97 • No: 0 • Other: 3

House vote • 4/1/2026

Motion to Adopt - Adopted Roll Call 1143

Yes: 101 • No: 0 • Other: 2

Senate vote • 3/11/2026

Third Reading in House of Origin

Yes: 35 • No: 0

Senate vote • 3/11/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 830

Yes: 35 • No: 0

Actions Timeline

  1. Enacted

    4/22/2026Senate

  2. Albritton Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1227

    4/8/2026Senate

  3. Ready to Enroll

    4/8/2026Senate

  4. Enrolled

    4/8/2026Senate

  5. Signature Requested

    4/8/2026House

  6. Delivered to Governor

    4/8/2026Senate

  7. Third Reading in Second House

    4/1/2026House

  8. Givens 1st Amendment Offered

    4/1/2026House

  9. Motion to Adopt - Adopted Roll Call 1143

    4/1/2026House

  10. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1144

    4/1/2026House

  11. Reported Out of Committee Second House

    3/31/2026House

  12. Read for the Second Time and placed on the Calendar

    3/31/2026House

  13. Read for the first time and referred to the House Committee on Ways and Means General Fund

    3/12/2026House

  14. Pending Committee Action in Second House

    3/12/2026House

  15. Third Reading in House of Origin

    3/11/2026Senate

  16. Motion to Read a Third Time and Pass - Adopted Roll Call 830

    3/11/2026Senate

  17. Reported Out of Committee House of Origin

    3/10/2026Senate

  18. Read for the Second Time and placed on the Calendar

    3/10/2026Senate

  19. Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund

    1/14/2026Senate

  20. Pending Committee Action in House of Origin

    1/14/2026Senate

Bill Text

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