The associated fee-of-living adjustment (COLA) for 2025 federal workers is a vital measure that goals to take care of the buying energy of federal staff’ salaries within the face of rising inflation. It’s calculated based mostly on the change within the Shopper Worth Index for City Wage Earners and Clerical Employees (CPI-W) from the earlier 12 months.
The COLA is of utmost significance because it ensures that federal workers can sustain with the rising price of dwelling and keep their way of life. It performs an important position in attracting and retaining a talented and devoted workforce throughout 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.