Employer Cost Of Living Increase 2024. The government’s statutory rate will also be extended to workers aged 21 and 22 for the first time. With the expected adjustment for cost of living for 2024 at 8.7%, if you give an employee an annual salary increase of $10,000, you will need to adjust that amount to $10,870 to account for inflation.
And while inflation is expected to drop below 2.5% in 2024, according to the federal reserve bank of st louis, a 3% raise will not make up for prices increasing by as much as 9% in 2022. How cost of living adjustments are calculated by your plan’s actuary is explained in the resources below.
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