Federal employee cost of living increase 2025 refers to the planned adjustment in salaries for federal employees to keep pace with the rising cost of living. The increase is typically based on the Employment Cost Index (ECI), which measures changes in wages and salaries for private industry workers.
The cost of living increase for federal employees is important because it helps to ensure that they can maintain their standard of living in the face of inflation. The increase also helps to recruit and retain qualified employees. Over the past decade, the average annual cost of living increase for federal employees has been around 1.5%.