# Federal Government Implements Quality Step Increases

The Federal Government continues to administer Quality Step Increases (QSI) as a performance-based mechanism to accelerate employee progression within pay grades. These QSI awards are distinct from automatic within-grade increases and are subject to limitations imposed by recent Executive Orders that normalize performance ratings and cap the availability of such awards. Notifications for QSI typically occur several months after the annual performance evaluation cycle, often around November, and require formal acceptance by the employee to take effect.

- **Why this matters:** Procurement professionals should be aware that QSI awards impact federal workforce compensation and may influence budgeting and human capital planning.
- Agencies must manage QSI notifications and acceptance processes carefully to comply with performance management policies.
- Contractors working with federal agencies may find that understanding QSI timing and limitations helps in workforce planning and contract staffing strategies.
- This indicates a continued emphasis on performance-based pay adjustments within federal agencies, affecting overall personnel costs and procurement considerations.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 21, 2026

### Government Entities
- Federal Government

### Key Quotes
> If you	27re nominated for a QSI, management will let you know because you have to formally accept or decline it. At my agency, you	27re asked around November, which is when performance awards are issued.
> — Anonymous commenter

### Sources
- [Step increase](https://www.reddit.com/r/FedEmployees/comments/1wmatah/step_increase) - reddit-fedemployees