Federal employees are in line for a substantial pay raise in 2025. The projected cost-of-living adjustment (COLA) for that year is 4.6%, according to the latest estimates from the Bureau of Labor Statistics. This would be the largest COLA since 1991, when federal employees received a 4.7% raise.
The COLA is designed to help federal employees keep pace with inflation. The adjustment is based on the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from December of the previous year to December of the current year. The CPI-W measures the average change in prices paid by urban wage earners and clerical workers for a basket of goods and services.
The projected 4.6% COLA for 2025 is based on the assumption that inflation will continue to rise at a moderate pace. If inflation turns out to be higher than expected, the COLA could be even larger. However, if inflation turns out to be lower than expected, the COLA could be smaller.
Projected COLA for Federal Employees in 2025
The projected cost-of-living adjustment (COLA) for federal employees in 2025 is 5.1%. This projection is based on the latest economic data available and is subject to change. The actual COLA for 2025 will be determined in December 2024. The COLA is important because it helps federal employees maintain their purchasing power in the face of rising inflation. The 2025 COLA is projected to be the highest since 2009, when the COLA was 6.1%.
The COLA is calculated using a formula that takes into account the Consumer Price Index (CPI). The CPI measures the average change in prices for goods and services purchased by urban wage earners and clerical workers. The COLA is designed to ensure that federal employees receive a pay increase commensurate with the cost of living.
People Also Ask About Projected COLA for Federal Employees 2025
What is the COLA for federal employees?
The COLA is a pay adjustment that is provided to federal employees to help them maintain their purchasing power in the face of rising inflation.
How is the COLA calculated?
The COLA is calculated using a formula that takes into account the Consumer Price Index (CPI). The CPI measures the average change in prices for goods and services purchased by urban wage earners and clerical workers.
When is the COLA paid?
The COLA is paid in January of each year.
