Army Pay & Allowances, pay raises, pay allowances, pay charts - Army Times

Cost-of-Living Allowance

ConUS COLA

A cost-of-living allowance is paid to military personnel assigned to high-cost locations in the continental U.S., defined as the 48 contiguous states and excluding Alaska and Hawaii.

Payments are based on rank, years of service, location and whether the service member has dependents. Rates can run from $19 per month to more than $500 per month in the costliest cities. The money is intended to cover higher transportation, food, clothing and other nonhousing costs in areas where those costs exceed the national average by more than 8 percent. Higher housing costs in these areas are covered by the Basic Allowance for Housing.

About 50,000 service members in more than 66 locations qualify for ConUS COLA, which is taxable. The allowance is paid automatically by service finance offices based on the member’s military duty ZIP code.

Overseas COLA

The overseas cost-of-living allowance is a supplement to regular pay that reflects higher prices overseas for goods and services. It varies with location, rank and number of family members. Rates are reviewed periodically and adjusted to reflect fluctuations in costs as well as foreign currency exchange rates. About 320,000 service members in more than 600 locations receive overseas COLA, which is nontaxable. The average payment is $300 per month.