The 2025 locality pay improve is a cost-of-living adjustment for federal workers in sure geographic areas the place the price of residing is increased than the nationwide common. The locality pay improve is decided by evaluating the price of residing in a selected geographic space to the price of residing within the Washington, D.C. space. The locality pay improve is then utilized to the bottom pay of federal workers in that geographic space.
The locality pay improve is essential as a result of it helps to make sure that federal workers are paid pretty for his or her work. The locality pay improve additionally helps to draw and retain certified workers in high-cost areas. The locality pay improve has been in place since 1990, and it has been up to date yearly since then.