USPS 2025 Pay Increases & Retroactive Checks

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 Allowance (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 24-2024 (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 leaver year Pay Period 3-2026 (begins January 10, 2026)
  • Annual Leave Exchange Start of leaver 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 yours 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 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). Their changes were complex. 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. However, we cannot make any promises or guarantee that the retroactive payment date will be changed. The APWU is especially pleased that some of pay structure changes will be implemented sooner than expected, giving our members more money in their pockets after implementation.

Below are the new Pay Scales

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AJ Jones for APWU National President | Watch the Debate & Vote

At our June General Membership Meeting (GMM), the membership voted unanimously to endorse AJ Jones for President of the American Postal Workers Union.

Brother Vince Tarducci, current National Business Agent for the Clerk Division in the Philadelphia Region, has also announced his endorsement of AJ Jones for National President. In his letter, Tarducci highlighted AJ’s integrity, leadership on the National Executive Board, courage to speak up even when in the minority, and his track record as Eastern Region Coordinator since 2019.

Now it is up to all of us. Ballots will be mailed September 10–15, 2025 and must be returned to the designated PO Box no later than October 6, 2025, at 2 PM. Every vote counts, and your support can help shape the future of our union.

Make your voice heard. Vote AJ Jones for APWU National President.

Watch the Debate Video: https://youtu.be/_Mys0y3Kq4M

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First APWU One-Time Retirement Incentive Payment Available August 15, 2025

Charlie Cash, Industrial Relations Director, wrote:

Union Family,

At a meeting with the Postal Service, it was confirmed that the first incentive payment due under the MOU Re: One-time Retirement Incentive, have been cut and should be available for employees to pick up at their last office of record on August 15, 2025.

According to the MOU a total of $15,000 minus appropriate deductions (taxes, etc.) will be paid. The incentive will be done in two payments:

  • $10,000 due August 15, 2025
  • $5,000 due August 28, 2026

Also, remember that part-time flexible and part-time regular employees will receive prorated amount. The proration can be found in the MOU that is attached or here:
2025.01.13_mou_1-time_retirement_incentive_between_usps_and_apwu_signed_3.pdf

Also, if employees have not done so or would like to for the payment next year, a form can be completed to have the check forwarded to them.  Further information and a link to the form can be found here: How to Receive One-Time Retirement Incentive Checks | American Postal Workers Union