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. Learn more about currency fluctuations and adjustments.

Refer to the DoD Overseas Station and Housing Allowance Process Guide [PDF, 27 pages] for information on the COLA survey schedule, COLA Unique Expenses, and the responsibilities of the Country Allowance Coordinator.

• https://www.travel.dod.mil/Allowances/Overseas-Cost-of-Living-Allowance/
• Customer Service: 86CPTS.CS@us.af.mil.