The federal worker cost-of-living adjustment (COLA) for 2025 is a cost-of-living adjustment that will probably be utilized to the salaries of federal workers in the USA. The COLA is calculated primarily based on the Client Value Index for City Wage Earners and Clerical Staff (CPI-W), which measures the change in costs of products and providers bought by city wage earners and clerical employees. The COLA is designed to assist federal workers sustain with the rising price of dwelling.
The COLA for 2025 is anticipated to be round 5%, which might be the biggest enhance within the COLA since 1991. The rise is because of the rising inflation fee, which has been pushed by a variety of elements, together with the COVID-19 pandemic, provide chain disruptions, and the warfare in Ukraine. The COLA is anticipated to have a major impression on the salaries of federal workers, and it’ll assist them to maintain up with the rising price of dwelling.