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President Biden has authorized a 2% overall average pay increase for federal employees in 2025, based on his alternative pay plan letter. The pay raise will be effective on the first day of the first applicable pay period beginning on or after January 1, 2025.

By: Dallen Haws As we enter 2025, both federal retirees and active employees are anticipating potential changes to their income through Cost of Living Adjustments (COLA) and pay raises.

2025 Federal Pay Raise Proposed at 7.4% - Congressman Gerry Connolly (D-VA) and Senator Brian Schatz (D-HI) reintroduced legislation in the House and Senate last week that would provide federal employees with a 2025 pay raise of 7.4 percent. The proposed pay adjustment for next year is a 4% base pay increase and a 3.4% increase for locality pay.

1. Federal Pay Increase Executive Order (EO) 14132, dated December 23, 2024, authorizes an average 2 percent increase (combination of the base of 1.7 percent and a locality of 0.3 percent, for a total of 2 percent), depending upon locality, effective January 12, 2025, for employees under the General Schedule (GS) and Foreign Service Schedule statutory pay systems.

The 2025 COLA for federal retirees and Social Security beneficiaries will be 2.5%, based on the CPI-W increase from 2023 to 2024. Learn how the COLA is calculated, who is eligible, and how it affects different retirement systems and components.

It is the time of year when federal employees and retirees start thinking about the COLA and annual pay raise. What are the likely figures for 2025?

In the last week of 2024, President Joe Biden signed an executive order providing an average 2% federal civilian employee pay raise applicable to statutory pay rates, including the General Schedule.

The letter proposes an the across-the-board 2025 federal employee pay raise of 1.7 percent and locality pay increases will average 0.3 percent, “resulting in an overall average increase of 2.0 percent for civilian federal employees.” This proposal is consistent with the 2025 White House budget released earlier this year.

Most civilian feds got a 2% federal pay raise for 2025, but certain senior-level feds working in some locality pay areas will see reduced pay raises.

By: FEDweek Staff President Biden has signed an executive order finalizing a 2 percent average federal employee pay raise in January, with increases to vary by locality from 1.88 to 2.35 percent.

The first formal proposal for the January 2025 federal employee raise has been introduced in both the House and Senate, recommending an increase of 7.4 percent.

Federal COLA 2025: Essential Guide to Pay Adjustments for Federal Employees For both active and retired federal employees, understanding the 2025 Cost-of-Living Adjustment (COLA) and pay raise is a key part of retirement and compensation planning. In an environment with rising living costs, these adjustments protect your buying power and ensure you can maintain the lifestyle you’ve worked so ...

“The average 2% federal pay raise in the president’s proposed 2025 budget is unacceptable,” said National Treasury Employees Union National President Doreen Greenwald in a statement.

Learn all about the 2025 Federal Pay Raise and how it affects federal employees, including annual pay increases and changes to locality pay areas. Federal retirement workshops and federal retirement webinars.

The largest proposal would increase revenues by $30.7 billion by requiring long-serving federal workers to increase their contributions into the Federal Employees Retirement System, or FERS, to 4. ...

The 2025 federal pay raise took another small step forward recently with movement on appropriations bills that are working their way through Congress. The Senate Armed Services Committee approved the 2025 National Defense Authorization Act which contains a 2% pay raise for Defense Department civilian federal employees.

House Republicans have advanced a series of proposals attempting to cut costs by reducing the value of federal retirement annuities, increasing contributions into the government’s retirement system, and requiring federal employees to decide between taking a reduced paycheck or keeping their civil service protections.

What’s the 2025 COLA Increase for Veterans? The VA’s cost-of-living adjustment (COLA) is tied to the Social Security COLA.

A s federal employees and retirees look toward 2025, discussions around the upcoming cost-of-living adjustment (COLA) are gaining momentum.