Cost of Living Allowance
Is your COLA fair and accurate?
The Cost-of-Living Allowance (COLA) is a visible and important part of an international assignee’s package. Not only is it compensation related, it is a transparent line item in an assignee’s paycheck. As such, companies need to ensure that all COLAs are fair and accurate.
Providing inaccurate allowances that are obtained from free online sources will only add confusion to an already complex assignment, one that is a large investment for a company.
Using a data provider to obtain COLAs, as well as Housing & Utility budgets, ensures that a neutral source is providing these compensation items in a manner that is fair and accurate to both the assignee and the company. A data provider has intricate methodologies to help calculate these allowances, including assumptions about real life usage patterns and application of category weightage to the assignee’s market basket and spending patterns, methodologies that the free online resources do not provide.
Click here to learn more about COLA from a data provider vs free online data.