The 2025 pay increase for federal employees is a cost-of-living adjustment (COLA) that will be applied to the salaries of all federal employees in 2025. The COLA is based on the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the average change in prices for goods and services purchased by urban wage earners and clerical workers. The CPI-W is calculated by the Bureau of Labor Statistics (BLS) and is released monthly.
The 2025 pay increase for federal employees is important because it will help to ensure that federal employees are able to keep pace with the rising cost of living. The COLA is also important because it helps to maintain the morale of federal employees and to attract and retain qualified workers.