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Senate Bill 154 Alabama 2026 Session

Updated Jan 29, 2026

Summary

Session
2026 Regular Session
Title
State employees, cost-of-living increase for fiscal year beginning October 1, 2026
Summary

SB154 would provide a 2% cost-of-living salary increase for most Alabama state employees for the fiscal year starting October 1, 2026, with the first pay day on or after that date.

What This Bill Does

If enacted, the bill would authorize a 2% salary increase for eligible state employees beginning with the first pay day on or after October 1, 2026. The increase would apply to classified and unclassified state employees, hourly workers, and many officials across the state’s executive, judicial, and legislative branches, including county health department staff paid from state budgets. It would not apply to Merit System employees or hourly workers covered by a labor agreement, and it would not apply to local salary supplements tied to state salaries. The changes would be carried out by updating the state pay plans and issuing warrants, with funding provided in the annual budget act rather than as a separate appropriation.

Who It Affects
  • State employees (classified and unclassified), hourly workers, and judicial and legislative personnel whose salaries are set by the state and are paid from state budgets would receive a 2% increase.
  • County health department employees who are subject to the State Merit System and whose compensation is paid from a budget provided by the state, county, or other contributing agency would also receive the 2% increase.
Key Provisions
  • Provide a 2% salary increase for eligible employees beginning with the first pay day on or after October 1, 2026.
  • Applicability includes classified/unclassified state employees, hourly employees, all judicial and legislative personnel, and county health department employees under the State Merit System paid from state budgets.
  • Exclusions include Merit System employees or hourly employees covered by a labor agreement, and local salary supplements tied to state salaries.
  • Implementation requires updating the pay plans by the appropriate directors and certifying to the State Comptroller to issue warrants.
  • Funding for the increase must be included in the annual budget act; it is not a standalone appropriation.
  • Effective immediately upon passage and governor's approval.
AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects
Appropriations

Bill Actions

S

Pending Senate Finance and Taxation General Fund

S

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

Bill Text

Documents

Source: Alabama Legislature