The federal worker cost-of-living adjustment (COLA) for 2025 is a cost-of-living adjustment that will likely be utilized to the salaries of federal staff in the US. The COLA is calculated primarily based on the Shopper Value Index for City Wage Earners and Clerical Employees (CPI-W), which measures the change in costs of products and companies bought by city wage earners and clerical employees. The COLA is designed to assist federal staff sustain with the rising value of residing.
The COLA for 2025 is predicted to be round 5%, which might be the biggest improve within the COLA since 1991. The rise is because of the rising inflation price, which has been pushed by numerous elements, together with the COVID-19 pandemic, provide chain disruptions, and the struggle in Ukraine. The COLA is predicted to have a big affect on the salaries of federal staff, and it’ll assist them to maintain up with the rising value of residing.