The 2025 federal pay raise with locality is a cost-of-living adjustment (COLA) for federal employees in the United States. The locality pay adjustment is a percentage increase in base pay that is added to the base pay of federal employees in certain geographic areas where the cost of living is higher than the national average. The 2025 federal pay raise with locality is important because it helps to ensure that federal employees are able to afford to live in the areas where they work. The locality pay adjustment is also important because it helps to attract and retain qualified employees in high-cost areas.
The 2025 federal pay raise with locality was announced by President Biden in January 2023. The pay raise will be effective in January 2025. The pay raise will be 4.6% for most federal employees. The locality pay adjustment will range from 0% to 25%, depending on the geographic area. The 2025 federal pay raise with locality is the largest pay increase for federal employees in over a decade.
