The associated fee-of-living adjustment (COLA) for 2025 federal workers is a vital measure that goals to keep up the buying energy of federal employees’ salaries within the face of rising inflation. It’s calculated primarily based on the change within the Shopper Worth Index for City Wage Earners and Clerical Staff (CPI-W) from the earlier yr.
The COLA is of utmost significance because it ensures that federal workers can sustain with the rising price of residing and preserve their lifestyle. It performs an important function in attracting and retaining a talented and devoted workforce inside the federal authorities. Traditionally, the COLA has been an integral a part of federal compensation packages, serving to to make sure equity and fairness for these serving within the public sector.