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Ramstein AB

Cost of Living

Overseas Cost-of-Living Allowance
Service members serving outside of the continental United States (OCONUS) where the cost of living is higher than CONUS receive an Overseas Cost-of-Living Allowance (COLA). Overseas COLA is a non-taxable allowance designed to offset higher prices of non-housing goods and services OCONUS and equalize purchasing power with members stationed in CONUS. It does not reimburse expenses, compensate for remoteness, hardship, loss of spousal income, or non-availability of goods and services.

OCONUS COLA is not a fixed amount and should not be considered in household budgeting. Fixed expenses, such as car payments, should be based on what a Service member can afford without the allowance. Overseas COLA can fluctuate based on the exchange rate, as COLA is paid in U.S dollars, but some expenses are typically paid in foreign currency.

https://www.travel.dod.mil/Allowances/Overseas-Cost-of-Living-Allowance/

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