Part I.

Sets a monthly teacher salary schedule for "A" teachers for 2025-26 for licensed public school personnel classified as teachers, based on years of experience, ranging from $4,469 for teachers with 0 years of experience to $6,099 for 25 or more years of experience. Provides for a 12% salary supplement for licensed teachers who have National Board for Professional Teaching Standards certification; a 10% salary supplement for licensed teachers classified as "M" teachers; a $126 salary supplement for licensed teachers with licensure based on academic preparation at the six-year degree level, in addition to the "M" teachers salary supplement; a $253 salary supplement for licensed teachers with licensure based on academic preparation at the doctoral degree level, in addition to the "M" teachers salary supplement; a 10% salary supplement for certified school nurses; and monthly salary supplement of $100 for school counselors licensed at the master’s degree level or higher. Requires that the first step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher, must be equivalent to the sixth step of the "A" salary schedule. Provides for a salary supplement of the $350 and 10% of their salary. Deems these employees eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six-year degree level or the doctoral degree level. Requires that the twenty-sixth step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher must be 7.5% higher than the salary received by these same employees on the twenty-fifth step of the salary schedule. Provides that in lieu of the amounts of annual longevity payments to teachers paid on the teacher salary schedule, beginning with the 2014-15 fiscal year, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule. Details teacher compensation for the 2026-27 school year based on either (1) the applicable salary schedule; (2) the sum of the salary the teacher received in 2013-14, longevity pay for the 2013-14 school year, and annual bonus provided in SL 2014-100; or (3) the sum of the salary and annual bonus the teacher received in the 2014-15 school year, with the compensation amount determined to be equal to the greater of those amounts. Provides that teacher includes instructional support personnel.

Sets an annual principal salary schedule, applicable to the 2026-27 fiscal year beginning July 1, 2026. Sets out the schedule based on average daily membership (ADM) with amounts increasing from the base amount, for meeting and then for exceeding growth; sets out provisions for determining which category to use. Amounts range from $84,793 for an ADM of 0-200 base salary to $127,189 for an ADM of 1,601 or more that exceeds growth. Sets out provisions governing placement on the salary scale. Provides that in lieu of the amounts of annual longevity payments, beginning with the 2017-18 fiscal year, the amounts of those longevity payments are included in the salary. Details principal compensation for the applicable school year based on (1) the applicable salary schedule, (2) the sum of the salary received in 2016-17 and longevity pay for the 2016-17 school year, or (3) the salary received in 2016-17 if not eligible for longevity at that time. Defines six terms.

Provides that for 2026-27, starting on July 1, 2026, assistant principals are to receive a monthly salary based on the "A" teacher salary schedule plus 19%, with placement based on total years the assistant principal has spent as a certified employee. Requires assistant principals with certification based on academic preparation at the six-year degree level to be paid a salary supplement of $126 per month, and at the doctoral degree level to be paid a salary supplement of $253 per month. Provides for a 10-month stipend for participants in an approved full-time master's in-school administration program. Details limitations and required certification. Provides that in lieu of the amounts of annual longevity payments to assistant principals paid on the assistant principal salary schedule, beginning with the 2017-18 fiscal year, the amounts of those longevity payments are included in the monthly amounts provided to assistant principals pursuant to the act. Requires assistant principals paid under the salary schedule provided for 2026-27 to receive the greater amount of (1) the applicable amount on the salary schedule for the applicable year, (2) the salary the assistant principal received in the 2016-17 school year under Sections 9.1 or 9.2 of SL 2016-94 plus the longevity that would have been received, or (3) the salary received in 2016-17 if not eligible for longevity at that time.

Provides that for 2026-27, starting on July 1, 2026, increases the annual salaries of central office employees (superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers) whose salaries are supported by State fund by 9%. Sets monthly salary maximums for 2026-27 for those employees, ranging from $8,255 for School Administrator I to $11,031 to School Administrator VII, beginning July 1, 2026. Sets monthly salary maximums for 2026-27 for superintendents, ranging from $11,692 for Superintendent I to $14,760 to Superintendent V, beginning July 1, 2026. Requires the local board of education to determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents. Provides a salary supplement of $126 for central office administrators and superintendents who have certification based on a six-year degree level. Provides a salary supplement of $253 per month to central office administrators and superintendents with certification based on a doctoral degree. Provides for longevity pay under the State Human Resources Act. Directs the State Board of Education (SBE) to prevent local school administrative units from transferring state funds from other funding categories to salaries for central office employees.

Provides that for 2026-27, starting on July 1, 2026, increases the annual salaries for noncertified public school employees whose salaries are supported from State funds as follows: (1) by 9% for permanent, full-time employees; (2) by equitable amount based on the 9% increase for permanent, full-time employees on a contract less than 12 months, part-time employees, and temporary/permanent hourly employees.

Requires that employees of schools operated by the Department of Health and Human Services (DHHS), the Department of Public Safety (DPS), the Department of Adult Correction (DAC), and SBE who are paid on the teacher salary schedule to be paid as authorized by the act for 2026-27.

Appropriates $939.8 million from the General Fund to DPI in recurring funds starting in 2026-27 for the compensation increases authorized above.

Part II.

Provides that for 2026-27, effective on July 1, 2026, increases the annual salaries for persons who are not one of the nine listed categories of employees exempted from the increase and whose (1) salary is set by Part III of the act under the SHRA and (2) who is employed in a State-funded position on June 30, 2026 by:

• 7% cost of living adjustment for State employees; and
• Any other salary adjustment otherwise allowed or provided by law.

Provides for prorated, equitable salary increases for eligible part-time employees. Specifies that no eligible State-funded employee will be prohibited from receiving the full salary increases solely because the employee's salary after applying the legislative salary increase is above the maximum of the salary range prescribed by the State Human Resources Commission.

Increases the Governor’s annual salary under GS 147-11 from $203,073 to $217,288. Provides for annual salaries for the members of the Council of State. Effective July 1, 2026.

Lists annual salaries for the eleven listed Executive Branch Members and the thirteen listed Judicial Branch Officials. Authorizes the district attorneys and public defenders to set salaries of assistant district attorneys and public defenders, as described, ranging from $58,175 to $108,390. Effective July 1, 2026.

Increases the compensation of the clerks of superior court in GS 7A-101, the assistant and deputy clerks of court in GS 7A-102, and full-time magistrates in GS 7A-171.1, effective July 1, 2026.

Provides that, starting on July 1, 2026, increases the annual salaries of the Legislative Services Officer and of nonelected employees of the General Assembly in effect on June 30, 2026, by 7%. Specifies that the act does not limit the provisions of GS 120-32. Increases the salaries of the General Assembly principal clerks under GS 120-37 and the Sergeants-at-arms and readings clerks under GS 120-37, effective July 1, 2026.

Directs the State Board of Community Colleges, starting on July 1, 2026,  to increase the annual salaries of community college faculty and non-faculty personnel by 7%. Sets minimum salaries for month, full-time curriculum community college faculty, effective July 1, 2026. Specifies that full-time faculty member cannot earn less than the minimum salary for the faculty member's education level. Provides for determination of minimum salary for part-time faculty members.

Directs the UNC Board of Governors, effective July 1, 2026, to provide SHRA and EHRA employees and teachers employed by the North Carolina School of Science and Mathematics with a 7% salary increase.

Effective July 1, 2026, requires correctional officers in the Department of Adult Correction (DAC) to be compensated at a specific pay rate on the basis of a salary schedule based on years of experience, based on the specified salary schedule. Also requires employees in the Department of Adult Correction, Division of Juvenile Justice and Delinquency Prevention, to be compensated at a specific pay rate based on years of experience; sets out the salary schedule to be used based on type of position. Sets out the annual salary schedule for correctional officers, based on experience and job class, ranging from $40,254 for correctional officers classified as COI with 0 years of experience to $57,863 for correctional officers classified as COIII with 6 or more years of experience. Allows raises equal to the amount of the across-the-board legislative salary increase under this Part for employees who would not receive a raise because their salary exceeds the scheduled salary level.

Sets an annual salary schedule, effective July 1, 2026, based on the officer's respective work experience and job classification, for law enforcement officers of the State Highway Patrol ranging from $58,850 for those with 0 years experience and $85,870 for those with 6 years or more of experience. Allows raises equal to the amount of the across-the-board legislative salary increase under this Part for employees who would not receive a raise because their salary exceeds the scheduled salary level.

Sets an annual salary schedule, effective July 1, 2026, based on the officer's respective work experience and job classification, for law enforcement officers of the State Bureau of Investigation and Alcohol Law Enforcement ranging from $57,220 for those with 0 years experience and $83,495 for those with 6 years or more of experience. Allows raises equal to the amount of the across-the-board legislative salary increase under this Part for employees who would not receive a raise because their salary exceeds the scheduled salary level.

Sets an annual salary schedule for probation and parole officers, based on experience, ranging from $48,602 for officers with 0 years of experience to $70,917 for officers with 6 years or more of experience. Requires Juvenile Court Counselors working in the Division of Juvenile Justice and Delinquency Prevention to also be paid on this salary schedule. Effective July 1, 2026. Allows raises equal to the amount of the across-the-board legislative salary increase under this Part for employees who would not receive a raise because their salary exceeds the scheduled salary level.

Legislatively increases the annual salaries for the following, effective July 1, 2026, for the following persons for salaries in effect on June 30, 2025: (1) permanent, full-time State officials and persons whose salaries are set in accordance with the State Human Resources Act; (2) permanent, full-time State officials and persons in positions exempt from the State Human Resources Act; (3) permanent, part-time State employees; and (4) temporary and permanent hourly State employees.

Requires the legislative salary increases to be paid effective on July 1, 2026, and specifies that they do not apply to persons separated from service due to resignation, dismissal, reduction in force, death, or retirement or whose last workday is before June 30, 2026. Gives the Director of the Budget flexibility in administering the compensation increases. Allows deeming the State employer contribution rates for retirement and related benefits to become effective, for administrative purposes, after July 1st to provide flexibility in the collection and reconciliation of salary-related contributions as required by law, so long as the estimated amount contributed to any affected employee benefit trust equals the amount that would have been contributed to the employee benefit trust if the enacted employer contribution rates had been effective on July 1st. Specifies that this applies to all employees paid from State funds.

Requires the Office of State Budget and Management (OSBM) to ensure the appropriations are being used appropriately. Specifies that funds appropriated for salaries and employee benefit increases cannot be used to adjust the budgeted salaries of vacant positions, to provide salary increases in excess of those required by the General Assembly, or to increase the budgeted salary of filled positions to the minimum of the positions salary range. Specifies that the funds appropriated for salaries and employee benefit increases in excess of the amounts required will be credited to the Pay Plan Reserve. Requires OSBM to report to the specified NCGA committee and division by May 1, 2027, on the expenditure of funds for legislatively mandated salary increases and employee benefits with four specified matters that must be addressed.

Appropriates $939.8 million from the General Fund in recurring funds for 2026-27 for the costs associated with implementing Part II of the act. Effective July 1, 2026.

Directs the State Human Resources Commission (SHRC) to adopt rules to implement enhanced sick leave benefits for State employees by January 1, 2027, that provide for the seven specified matters. Clarifies that the enhanced sick leave should not be construed to modify the treatment of sick leave for purposes of retirement credit under GS Chapter 135.

Part III.

Amends GS 135-5 (pertaining to benefits under TSERS), GS 135-65 (post-retirement increases under Consolidated Judicial Retirement System -CJRS), GS 120-4.22A (post-retirement increases under the Legislative Retirement System - LRS). GS 128-27 (benefits for members of the Local Government Employees Retirement System-LGERS) as follows. Effective July 1, 2026, provides for prorated 3% COLA increase for certain beneficiaries who retired after July 1, 2025, but before June 30, 2026, based on the number of months that a retirement allowance was paid between July 1, 2025, and June 30, 2026.

Appropriates $250 million from the General Fund to the Reserve for Retiree Cost-of-Living Adjustments in recurring funds for 2026-27 to implement Part III of the act.

Part IV.

Effective July 1, 2026.