COLA
Abbreviation with 2 meanings
| Stands for | Cost-of-living adjustment |
|---|---|
| Meanings | 2 |
| Categories | Government & Politics, Military |
COLA has two meanings. It stands for Cost-of-living adjustment (public program) or Cost-of-living allowance (military term).
Meanings of COLA at a glance
| # | COLA stands for | Context |
|---|---|---|
| 1 | Cost-of-living adjustment | Government & Politics › Public Program |
| 2 | Cost-of-living allowance | Military › Military Term |
1. Cost-of-living adjustment
Government & Politics · Public Program Abbreviations · also used in business and the military
Annual increase in Social Security and SSI benefits, as well as federal pensions, to offset inflation. For Social Security it is based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of one year to the next.
Example: The 2025 COLA added 2.5 percent to her monthly Social Security check.
Automatic COLAs began in 1975; before that Congress raised benefits case by case. The 8.7 percent COLA for 2023 was the largest in four decades. Some advocates argue for using an index for older Americans (CPI-E), which weights health care costs more heavily. In employment contracts COLA also means a cost-of-living raise.
2. Cost-of-living allowance
Military · Military Term Abbreviations
Allowance paid to service members assigned to high-cost areas, in two forms: CONUS COLA for expensive locations in the continental United States and OCONUS COLA for overseas, Alaska and Hawaii. Amounts vary with grade, years of service and dependents.
Example: The OCONUS COLA in Tokyo helps offset grocery prices that are far higher than in the States.
CONUS COLA is taxable, while overseas COLA, like BAH, is not. Overseas COLA rates move with exchange rates and are recalculated frequently. In retirement and VA benefits, COLA instead means the annual cost-of-living adjustment to pensions and compensation.
Related abbreviations
More public program abbreviations
- APTC – Advance premium tax credit
- CCC – Civilian Conservation Corps
- CDBG – Community Development Block Grant
- CHIP – Children's Health Insurance Program
- CPS – Child Protective Services
- CSR – Cost-sharing reductions
- CTC – Child Tax Credit
- DACA – Deferred Action for Childhood Arrivals
See all 65 public program abbreviations →