OPM 2025 COLA Increase Date: As part of the Cost of Living Adjustment (COLA) for 2025, the Democratic administration of President Joe Biden has said that federal workers will get a 2% pay raise. But when will this change really happen?
In a letter to Congress, Biden laid out the plan. This will be one of his last acts as president of the US. Even though it’s not as much as some of his earlier goals, it does give workers an average pay raise of 2%.
The President wanted to keep pay raises for civilian federal workers at the same rate as those for women and men in the military. However, the government has not met this goal because military pay is expected to rise to 3.5% by 2025.
SNAP Benefits EBT Card Suspension: Will Your EBT Card Suspension Impact Your Assistance?
OPM 2025 COLA Increase Date
When Biden announces the change as an executive order before the end of 2024, employees can anticipate that it will take effect on January 1, 2025, enabling the Office of Personnel Management to create localized pay tables.
Biden states that the goal of the adjustment is to “attract, recruit, and retain a skilled workforce with fair compensation in order to keep our government running.”
What is the 2025 COLA?
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is used to figure out the Cost-of-Living Adjustment (COLA). This index shows how rising prices affect the everyday costs of average Americans.
4 Smart Strategies to Secure Your Retirement Without Relying on Social Security
The Social Security Administration uses this information to figure out the COLA for the next year and plans for a 2.5% increase in 2025. Just as an example, if someone normally gets $2,000 in Social Security Disability Income, this change would make their payment $2,050, which is $50 more.
The Senior Citizen League predicts that COLA for 2025 will be no more than three percent and no less than 2.5 percent. It will be announced in October 2024 and go into effect on January 1, 2025.
