The Office of Personnel Management (OPM) is responsible for the administration of the federal government’s pay and benefits systems. In 2025, OPM will implement a new pay raise for federal employees. The pay raise is intended to keep pace with inflation and to ensure that federal employees are compensated fairly for their work.
The pay raise will be applied to all federal employees, regardless of their grade or position. The size of the pay raise will vary depending on the employee’s locality and pay band. Employees in higher-cost areas will receive a larger pay raise than employees in lower-cost areas. The pay raise will also be applied to federal retirees.