The Workplace of Personnel Administration Price-of-Dwelling Adjustment (OPM COLA) for 2025 is a yearly cost-of-living adjustment that goals to take care of the buying energy of federal staff’ salaries. It’s calculated based mostly on the change within the Shopper Worth Index for City Wage Earners and Clerical Employees (CPI-W) from December of the previous 12 months to December of the present 12 months.
The OPM COLA is essential because it helps federal staff sustain with the rising price of dwelling, making certain that their salaries retain their actual worth. Traditionally, COLAs have performed a big position in supporting federal staff’ monetary well-being, particularly during times of excessive inflation.