August 12, 2025

Second Cost of Living Adjustment Announced Today

On August 12, 2025, the July Consumer Price Index (CPI-W 1967=100) was released. This is the index that sets the Cost-of-Living Allowances (COLAs) for the APWU contracts. In July, the final month of the six-month adjustment period for the second COLA under the 2024 Agreement, the CPI-W Unadjusted Index (1967=100) increased from last month to 942.307.

Based on this increase, the second COLA for career employees who fall under the National Agreement will be $811.00 per year. That equates to 39¢ per hour. So far, under the 2024 National Agreement, employees have accrued adjustments totaling $1,206.

Under the terms of the National Agreement, career employees are due multiple pay increases

  • 1.3% effective November 16, 2024
  • $395 COLA effective March 8, 2025
  • $811 COLA  effective September 6, 2025
  • 1.4% effective November 15, 2025

Postal Support Employees (PSEs) are due a 2.3% raise according to the new union contract.

As of August 12, 2025, the Postal Service has not informed the APWU of the date that the pay increases will be reflected in paychecks. The Postal Service is in the process of setting the necessary programming timeline to implement all the pay increases.

“Our union family who work in IT/AS must program the necessary changes to the payroll systems for these increases to take effect. Postal management has not yet provided a timeline as to when these changes will show in your paycheck, but the parties agree on the effective dates and that these pay increases will be paid retroactively,” said Industrial Relations Director Charlie Cash, “I am in constant communication with the Postal Service on these pay issues, and as soon as I have a tentative schedule of when the pay increases our members are due will show up in paychecks, it will be announced.”

In addition to the pay increases, other provisions of the 2024 National Agreement are set to go into effect “the first full pay period 180 days after ratification”. These provisions include:

  • Upgrade of Grade 3 to Grade 4
  • Elimination of Step JJ in Grade 4
  • New top steps for employees who are in the post-2010(new/lower tier) Pay scales (Grade 4 to Step J, Grade 5 to Step L, Grades 6 and 7 to Step M)
  • Elimination of entry Step-GG for PSEs who are automatically converted to career after 24 months
  • Additional Pay/New Steps for PSEs and PSEs in RMPOs

Based on the date of ratification, the date of implementation for these provisions will be the start of pay period three of 2026 (PP03-2026), which starts on January 10, 2026.