Personal Finance

OPM 2025 COLA Increase Date: When can you expect it to happen?

President Biden announces a 2% pay increase for federal employees as part of the 2025 Cost of Living Adjustment, despite not matching civilian pay with military pay.

OPM 2025 COLA Increase Date: President Joe Biden has announced a 2% pay increase for federal employees as part of the 2025 Cost of Living Adjustment (COLA). This change is expected to take effect next year, marking one of Biden’s final actions in office. While the raise offers some financial relief, it is less than some of the administration’s earlier goals.

2025 COLA Increase Date: Check out the possible date!

Biden had aimed to match pay raises for civilian federal employees with those for the military. However, with military pay projected to increase by 3.5% in 2025, the government has not achieved this equalization. Despite this, the 2% raise will still provide a boost to federal workers’ incomes.

OPM 2025 COLA Increase Date

People who work for the federal government will get a 2% pay raise on January 1, 2025, if President Biden signs the executive order for it before the end of 2014. This will give the Office of Personnel Management (OPM) time to come up with pay tables that are more appropriate for workers in different areas.

To “attract, recruit, and retain a skilled workforce,” which is necessary to keep the government running, Biden said that the change was made to make sure that everyone was paid fairly. The goal of the raise is to keep the job market competitive while also giving public servants fair pay.

What is the 2025 COLA?

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is the basis for calculating the Cost-of-Living Adjustment (COLA), which reflects how rising prices impact everyday expenses for the average American.

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The Social Security Administration uses this index to determine COLA, with a planned 2.5% increase for 2025.

For instance, if someone currently receives $2,000 in Social Security Disability Income, the 2.5% adjustment would raise their payment to $2,050, an increase of $50.

The Senior Citizen League predicts the 2025 COLA will fall between 2.5% and 3%, with the official announcement expected in October 2024, and the changes taking effect on January 1, 2025.

Eduvast Desk

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