This bill establishes a salary increase for state employees, effective July 1, 2026. It mandates that all full-time and part-time employees, including temporary and limited-term employees, who were employed on the last working day of June 2026, will receive an annualized salary increase of five percent (5%) based on their salary as of June 30, 2026. Employees on leave without pay on the effective date will also be eligible for the increase upon their return to work, but will not receive retroactive increases for the period they were absent.

However, the bill specifies certain categories of employees who will be excluded from this salary increase, including elected officials, cabinet secretaries, agency directors, judges, district attorneys, and employees of higher education institutions, among others. Additionally, the bill ensures that no salary increase will exceed limitations set by an agency's annual appropriation bill or statutory salary limits. The act is set to take effect immediately upon passage and approval, with an emergency declaration for its implementation.