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