Cost Of Living 2025 Government Increase. Moreover, many americans are unable to purchase homes due to historically high prices, in part due to regulatory requirements that alone account for 25 percent of the cost of. Legislation has been introduced to set the 2025 federal pay raise for federal employees at 7.4%.

How is the annual federal employee pay raise determined? The 2025 cost of living adjustment (cola) was announced last week, and most federal workers will again receive a reduced cola due to a flawed rule in the current law.