Cost-of-Living

Cost-of-Living Allowances (COLA)

No matter what you call it —Goods and Services Differential, Commodities and Services Allowance, Cost-of-Living Index, COLA—the additional money needed by global assignees due to cost differences and living pattern changes between the home and host locations is a high profile element of the compensation package.

AIRINC works closely with organizations to customize categories of consumption in order to mirror company policy and avoid costly double payments for items provided in-kind. We compute COLAs for over 2,000 transfer combinations on six continents, supporting over 100 home countries and over 300 host cities. Additionally, our professional in-house research staff conducts on-site pricing surveys, and encourages global assignees to supplement our data collection process by completing an AIRINC Pattern-of-Living Questionnaire. Through this questionnaire, expatriates contribute valuable information about popular retail outlets and neighborhoods, as well as typical spending patterns and costs associated with that host location.

COLAs for each transfer combination are provided in a table format or look-up program that enables clients to access data based on different salaries and family sizes. Clients can also get a COLA recommendation for a specific salary and family size as part of an Individual Report.