A cost-of-living adjustment (COLA) is a periodic increase in wages or salaries designed to offset the effects of inflation on purchasing power. For public sector workers in Maryland, these adjustments help maintain the real value of their compensation over time. A projected adjustment for the year 2025 would represent an anticipated increase applied to the base salaries of eligible state employees.
Regular adjustments for inflation are important for maintaining employee morale and attracting qualified individuals to public service. They provide a measure of financial stability for state employees facing rising costs for essential goods and services. Historically, these adjustments have been implemented by the Maryland state government with varying percentages based on economic conditions and available budget resources.