The federal 2025 pay raise is a scheduled increase in wages for federal employees that is set to take effect in January 2025. The raise is intended to keep pace with the rising cost of living and to ensure that federal employees are fairly compensated for their work.
The federal pay raise is determined by a formula that takes into account the Employment Cost Index (ECI), which measures the change in wages and benefits for private-sector workers. The ECI is published by the Bureau of Labor Statistics and is used to calculate the annual pay adjustment for federal employees.