
Will the 2025 Federal Pay Raise Affect Retirement Calculations for Federal Employees?
The 2025 federal pay raise will indeed affect retirement calculations for federal employees, and understanding how it works is crucial for anyone planning to retire soon. Federal retirement benefits are primarily calculated based on an employee’s “high-3” average salary, which is determined by the highest three consecutive years of earnings during their career. This makes salary increases, such as the upcoming pay raise, a significant factor in the retirement benefit calculation.




