The federal employee cost-of-living adjustment (COLA) for 2025 is a cost-of-living adjustment that will be applied to the salaries of federal employees in the United States. The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the change in prices of goods and services purchased by urban wage earners and clerical workers. The COLA is designed to help federal employees keep up with the rising cost of living.
The COLA for 2025 is expected to be around 5%, which would be the largest increase in the COLA since 1991. The increase is due to the rising inflation rate, which has been driven by a number of factors, including the COVID-19 pandemic, supply chain disruptions, and the war in Ukraine. The COLA is expected to have a significant impact on the salaries of federal employees, and it will help them to keep up with the rising cost of living.