COLA (Cost of living allowance)

Human Resources » Compensation & Benefits

	Message From: bijoy123	Total Posts: 16	Join Date: 25/12/2006
Rank: Executive	Post Date: 08/02/2008 07:48:45	Points: 80	Location: United States

Hi,

I am looking for information on COLA (Cost of living allowance) for different cities. Can any one share with me the method of calculating the same and whether it is linked to the salary. Thanks in advance.

Regards,

Bijoy

	Message From: ruchika_rohilla21	Total Posts: 1	Join Date: 25/12/2006
Rank: Beginner	Post Date: 21/05/2008 02:17:31	Points: 5	Location: United States

Hi ,

Im a new member to this group. I also want to know about COLA. Pls Help

Regards,

Ruchika

	Message From: jagadish	Total Posts: 41	Join Date: 25/12/2006
Rank: Executive	Post Date: 21/05/2008 04:56:25	Points: 205	Location: United States

Stipends or extra pay provided to employees who are being temporarily relocated are called cost-of-living adjustments or cost-of-living allowances. Such adjustments are intended to offset changes in welfare due to geographic differences in the cost of living.

Such adjustments might more accurately be described as a per diem allowance or tied to a specific item, as with housing allowances. Employees who are being permanently relocated are less likely to receive such allowances, but may receive a base salary adjustment to reflect local market conditions.

A cost-of-living allowance (COLA) adjusts salaries based on changes in a cost-of-living index. Salaries are typically adjusted annually.

Hope this clarifies

Jagadish

	Message From: gbaeyens	Total Posts: 5	Join Date: 25/12/2006
Rank: Beginner	Post Date: 16/01/2010 11:24:10	Points: 25	Location: United States

that clarifies indeed but no indication is given on 'index of COLA' present in India, or is it a 'internal calculation ' companies makes based on what ?

G Baeyens

	Message From: Janak Soni	Total Posts: 3	Join Date: 25/12/2006
Rank: Beginner	Post Date: 14/05/2010 09:01:54	Points: 15	Location: United States

Yes, exactly. It seems that with the softwares making inroads, COLA is also the term imported with such software. Is COLA index operative or allowed to be operative in India as per Indian Labour Laws ? Is COLA an accepted term in India as a substitute to some other allowance ? Surprisingly, some companies using readymade software are found to have COLA as a part of their salary structure. When asked, they are unable to explain the logic behind keep COLA on pay-roll, as also its meaning and related regulation and calculation norms ? To our knowledge, COLA as per its general meeting need to be constantly revised as CPI or Cost of Living Index. Indian companies using this parlence are not revising the COLA and therefore overall salaries. Actually, every component of payroll or say Paysheet must have its meaning and reasoning under labour, IT or other applicable laws. Very confusing !

Can any person who is proficient on payroll management ,enlighten in detail about COLA and its relevance in Indian context?