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Cost of Living Allowance (COLA)

Cost of Living Allowance (COLA)

How can AIRINC's Cost of Living Allowance help you?

The Cost of Living Allowance (COLA) -- also known as Goods and Services Differential, Commodities and Services Allowance, Cost of Living Index – helps clients protect assignees from increased goods and services costs at the host location as compared to those in the home country.

AIRINC’s unique methodology for calculating the COLA facilitates mobility by reflecting expatriate spending patterns more accurately, ensuring that assignees are compensated appropriately and enabling them to remain focused on their work rather than on the financial impact of being on assignment.

Why should you choose AIRINC's Cost of Living Allowance?

AIRINC's Cost of Living Allowance:

  • reflects each client's business context by offering multiple index options and the ability to customize indexes to align with company-specific policies; for example, company-provided benefits may be excluded in order to avoid costly double payments;

  • leverages our reliable on-site data, collected by our in-house professional staff in over 400 cities on six continents based on a market basket of more than 300 items, the largest in the industry;

  • is built upon a rigorous methodology that recognizes that categories of expenditure fall into two general types: those where home country living patterns are maintained, and those where living patterns are adjusted due to the nature of the assignment or the conditions in the host location;

  • offers unparalleled data coverage, with access to more than 5,000 home to host location combinations;

  • can easily connect to external platforms using batch reporting capabilities and a variety of importable report formats;

  • reflects valuable input from global assignees about popular retail outlets and typical spending patterns, collected in our Pattern-of-Living Questionnaire.

How can you access AIRINC's Cost of Living Allowance?

An AIRINC Cost of Living Allowance Table is available via:

  • Transactional Access: Per Home/Host Combination (Annual Update)

  • Calendar Year Access: Per Home/Host Combination (Multiple Updates)

What does AIRINC's Cost of Living Allowance look like?

AIRINC Webinar

Managing Cost of Living Allowances in a Volatile World

What is the impact of volatility on Cost of Living Allowances? What are common practices used for updaing these allowances?

Watch Recording

Sample COLA Table

Worksheets

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