The federal worker cost-of-living adjustment (COLA) for 2025 is a cost-of-living adjustment that can be utilized to the salaries of federal workers 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 workers sustain with the rising price of dwelling.
The COLA for 2025 is predicted to be round 5%, which might be the biggest enhance within the COLA since 1991. The rise is as a result of rising inflation price, which has been pushed by quite a few components, together with the COVID-19 pandemic, provide chain disruptions, and the warfare in Ukraine. The COLA is predicted to have a big affect on the salaries of federal workers, and it’ll assist them to maintain up with the rising price of dwelling.