COLA and Locality Pay Rates in Nonforeign Areas 2019
|Nonforeign COLA Areas||2019|
|COLA Rates (%)||Locality Rates (%)|
|County of Hawaii , Hawaii||4.76||18.98|
|County of Kauai, Hawaii||10.64||18.98|
|County of Maui (including Kalawao County), Hawaii||10.64||18.98|
It impacts 320,000 members at approximately 600 locations overseas, including Alaska and Hawaii . The current cost is approx. $1 billion annually.
The Overseas Cost of Living Allowance ( COLA ) is a non-taxable allowance designed to offset the higher overseas prices of non-housing goods and services. It affects approximately 250,000 Service members at 600 locations overseas, including Alaska and Hawaii .
The COLA is based on a baseline calculation of the difference in costs, and then adjusted as often as twice a month to reflect changes in the exchange rate between the US dollar and the local currency. ( COLA is one of the only allowances that is calculated on a half- month basis.)
COLA is an entitlement while stationed in Hawaii to help offset the high cost of living. It ranges from about $500 – $1,500 a month and is determined by rank, time in service, number of dependents, and whether you are assigned to barracks.
Under Wage Order No. 22, the P10 cost of living allowance ( COLA ) will also become part of the basic pay . National Wages and Productivity Commission Executive Director Criselda Sy explained that the integration of COLA in the basic pay means bigger computations for overtime pay and 13th month pay .
No. CONUS COLA is a monthly entitlement based on a 30 day month, the same as BAH .
The amount of BAH depends on your duty station zip code, your rank, and whether or not you have dependents. However, if you are not married or divorced and are paying child support, you do not receive full-rate BAH while living in the barracks. In this case, special rules apply, and the member receives BAH -DIFF.
The COLA affects about one in every five Americans, including Social Security recipients, disabled veterans, federal retirees and retired military members. In 2020 , the COLA increase was 1.6%; in 2019, retirees saw a 2.8% increase.
Overseas Housing Allowance ( OHA ) You are paid OHA in the exact amount of your rent, plus an amount determined by DoD to cover the utility and recurring maintenance expenses for their location. The amount is determined based on location, rank, and dependency status.
While all pays are taxable, most allowances are tax -exempt. The primary allowances for most individuals are BAS and BAH , which are tax -exempt. Tax savings can be significant as BAS and BAH averages over 30% of a member’s total regular cash pay.
Cost of Living Allowance
A cost-of-living adjustment ( COLA ) is an increase in benefits or salaries to counteract inflation. Inflation for the Social Security COLA is calculated annually using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The assigned utilities rate for Germany is 641 euros ($750.76 USD) per month. If the member’s rent is 950 euros or greater per month, the member would receive the maximum OHA of 1,591 euros ($1,863.43 USD) per month for rental expenses.