The state of Maryland has announced a cost-of-living adjustment (COLA) of 5% for all state employees, effective July 1, 2025. This pay raise is the largest in over a decade and is a welcome relief for state workers who have been struggling to keep up with the rising cost of living. The COLA will provide a much-needed boost to the incomes of state employees and help them to better support their families.
The COLA is a result of the state’s strong fiscal position. The state has a budget surplus of over $2 billion, which has allowed it to make this investment in its workforce. The pay raise is also a recognition of the hard work and dedication of state employees, who have continued to provide essential services during the COVID-19 pandemic. In addition to the COLA, the state is also providing a one-time bonus of $1,000 to all state employees. This bonus will help to further offset the impact of inflation and provide some financial relief to state workers.
The COLA and the bonus are both positive steps towards supporting state employees and ensuring that they are fairly compensated for their work. The state’s investment in its workforce will help to attract and retain talented employees and provide them with the resources they need to succeed. The COLA and the bonus are also a sign of the state’s commitment to its employees and to providing them with a fair and equitable workplace.
Historical Trends in Maryland COLA Pay Raises
Historically, COLA pay raises in Maryland have been relatively modest. In the past decade alone, the average annual increase in the state’s cost of living has been only 2.2%. This means that state employees who have received a COLA pay raise each year since 2012 have only seen their salaries increase by an average of 22%.
However, there have been periods during which COLA pay raises in Maryland have been more generous. In the 1980s and 1990s, for example, the state’s COLA pay raises averaged more than 4% per year. This led to a significant increase in the salaries of state employees during that time period.
The table below shows the average annual increase in the Maryland COLA pay raise since the program was first implemented in 1977.
| Year | Average Annual Increase | |
|---|---|---|
| 1977-1989 | 4.5% | |
| 1990-1999 | 4.3% | |
| 2000-2009 | 2.8% | |
| 2010-2019 | 2.2%Comparison of Maryland COLA to Other States———- Maryland’s cost-of-living adjustment (COLA) for state employees has historically been comparable to those of other states in the region. In recent years, Maryland’s COLA has typically been in the middle of the pack, with some states offering slightly higher adjustments and others offering slightly lower adjustments. For example, in 2022, Maryland’s COLA was 2.5%, which was in line with the national average of 2.6%. However, some states, such as California and New York, offered COLAs of 3% or more, while other states, such as Pennsylvania and New Jersey, offered COLAs of 2% or less. In 2023, Maryland’s COLA is expected to be 3.0%, which is slightly higher than the national average of 2.9%. This would put Maryland in the top half of states in terms of COLA generosity. The following table compares Maryland’s COLA to the COLAs of other states in the region: | State |
| State | 2022 COLA | 2023 COLA (est.) |
| Maryland | 2.5% | 3.0% |
| California | 3.0% | 3.5% |
| New York | 3.0% | 3.25% |
| Pennsylvania | 2.0% | 2.25% |
| New Jersey | 2.0% | 2.25% |