abstract:Cost of Living Allowance (COLA) is a United States military entitlement given to military servicemen and women living in high cost areas or stationed overseas. It is intended to compensate servicemembers for the high cost of living at certain duty stations.
Under austerity measures introduced thus far, civil servants have taken an average 10% cut in pay, VAT has been increased and the costoflivingallowance has been suspended.
Now, in terms of the COLA, the formula -- COLA stands for CostofLivingAllowance, so it's put in place to make sure that Social Security is keeping up with inflation.