December Penalty Overtime Exclusion Period For 2025

The Postal Service has notified NALC of the December period during which penalty overtime regulations are not applicable. As referenced in Article 8, Sections 4 and 5 of the USPS-NALC National Agreement, this period consists of four consecutive service weeks.

This year, the December period begins Pay Period 26-2025, Week 1 (Nov. 29, 2025) and ends Pay Period 01-2026, Week 2 (Dec. 26, 2025).

Keep in mind, the penalty overtime exclusion period does not affect the new provision bargained for and included in the 2023-2026 National Agreement outlined in Article 8, Section 4.G. This provision, which in accordance with M-02009 began on July 1, 2025, requires letter carriers to be paid at the rate of two and a half (2½) times their base hourly straight time rate for any hours worked beyond 12 hours in a service day or 60 hours in a service week. This requirement to compensate letter carriers at that rate of pay is unchanged during the December period. All hours worked in excess of 12 hours in a service day or 60 hours in a service week will still be paid at 2½ times the normal rate of pay.

NALC Confirms Backpay Date

NALC has successfully secured the backpay for all carriers for the time between when the 2019-2023 contract ended, and the 2023-2026 contract was set this past April. The back pay for full-time carriers & PTFs will include:

1. First COLA—$978 at Step P:8/26/23 to 4/18/25
2. First General Increase—1.3 percent:  11/18/23 to 4/18/25
3. Second COLA—$353 at Step P:3/9/24 to 4/18/25
4. Third COLA—$978 at Step P:9/7/24 to 4/18/25
5. Second General Increase—1.4 percent:11/16/24 to 4/18/25
6. Fourth COLA—$416 at Step P:  3/8/25 to 4/18/25

And, for CCA’s, the backpay will include:

1. First General Increase—2.3 percent:11/18/23 to 4/18/25
2. Second General Increase—2.4 percent:11/16/24 to 4/18/25

The backpay will be included in the August 29 paycheck.

For the full article about the backpay, head on over to the NALC National Website.

Fifth Contractual COLA Set At $790

The fifth regular cost-of-living adjustment (COLA) for career letter carriers under the 2023-2026 National Agreement was $790 annually following the release of the July consumer price index (CPI). This increase was added to every step in Table 1 and Step P in Table 2, and then applied proportionately to Steps B through O in Table 2. The increase has been applied to the pay chart below, which is awaiting confirmation from the Postal Service. The increase will take effect Sept. 6.