The federal price of residing enhance for 2025 refers back to the projected proportion adjustment in salaries and advantages for federal workers, navy members, and Social Safety recipients to maintain tempo with the rising price of residing. This adjustment is decided by the Bureau of Labor Statistics’ Employment Price Index (ECI) and is usually introduced within the fall of the previous yr.
The federal price of residing enhance is essential as a result of it helps to make sure that federal workers and retirees are in a position to keep their lifestyle within the face of inflation. It additionally helps to draw and retain certified staff within the federal workforce. Traditionally, the federal price of residing enhance has been comparatively modest, however it has diverse relying on the speed of inflation. Lately, the federal price of residing enhance has been round 2%, however it may very well be larger in 2025 if inflation continues to rise.