The term “2025 COLA for federal employees” denotes the cost-of-living adjustment (COLA) that will be applied to the salaries of federal employees in 2025. It is a crucial factor that ensures that federal employees’ salaries keep pace with the rising cost of living. 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 for a basket of goods and services commonly purchased by urban wage earners and clerical workers. The 2025 COLA will be determined by the CPI-W data from December 2024 to December 2025.
The 2025 COLA is significant for several reasons. First, it will provide federal employees with a much-needed salary increase to help them cope with the rising cost of living. Second, it will help to maintain the morale of federal employees, who are essential to the functioning of the federal government. Third, it will contribute to the overall economic health of the country by increasing consumer spending and stimulating economic growth.