The federal price of residing enhance for 2025 refers back to the projected share adjustment in salaries and advantages for federal staff, army members, and Social Safety recipients to maintain tempo with the rising price of residing. This adjustment is set by the Bureau of Labor Statistics’ Employment Price Index (ECI) and is often introduced within the fall of the previous 12 months.
The federal price of residing enhance is essential as a result of it helps to make sure that federal staff and retirees are capable of 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, nevertheless it has diversified relying on the speed of inflation. Lately, the federal price of residing enhance has been round 2%, nevertheless it could possibly be increased in 2025 if inflation continues to rise.