Cost of Living Allowance

A Cost of Living Allowance (COLA) is currently offered to service members on duty in the continental United States (CONUS) as an addition to standard military pay where local living costs for non-housing expenses exceed the military location average. For those serving overseas in locations where goods and services exceed CONUS levels, the military also offers an Overseas Cost of Living Allowance supplement.

COLA

COLA indexes for living costs are set for all areas of the country. Once a service member has absorbed up to 8 percent of total costs above the average, the military provides a COLA. Even if you are assigned for a tour of duty outside CONUS, your dependents may be eligible to continue to receive the COLA.

Indexes that establish the rate for the COLA are adjusted annually. Your COLA may also vary based on your current military pay grade and time in service.

Overseas Cost of Living Allowance

The average Overseas Cost of Living Allowance currently hovers around $300 a month, added to your military basic pay. The rate offsets higher overseas costs for food, clothing, transportation, and utilities. Nearly 600 locations overseas currently have costs of living that exceed national military averages.

The Overseas Cost of Living Allowance is calculated using a variable index based on the amount of on-base shopping service members do while stationed abroad. The military also conducts routine living pattern and market price surveys of overseas locations.