2025 Cost Of Living Increase Percentage 2025. Payscale found merit and performance will be the highest driver of base pay increases in 2025, with 79% of companies listing it as a factor, compared to market adjustment. The consumer prices index including owner occupiers' housing costs (cpih) rose by 2.6% in the 12 months to september 2025, down from 3.1% in august.
With the expected adjustment for cost of living for 2025 at 8.7%, if you give an employee an annual salary increase of $10,000, you will need to adjust that amount to. The table below shows the federal pay raises.
