The 2025 locality pay enhance is a cost-of-living adjustment for federal workers in sure geographic areas the place the price of dwelling is greater than the nationwide common. The locality pay enhance is decided by evaluating the price of dwelling in a selected geographic space to the price of dwelling within the Washington, D.C. space. The locality pay enhance is then utilized to the bottom pay of federal workers in that geographic space.
The locality pay enhance is essential as a result of it helps to make sure that federal workers are paid pretty for his or her work. The locality pay enhance additionally helps to draw and retain certified workers in high-cost areas. The locality pay enhance has been in place since 1990, and it has been up to date yearly since then.