MilitarySpot.com

Serving the U.S. Army, Navy, Air Force, Marines, Coast Guard and National Guard

Follow MilitarySpot:
 
  • Home
  • Enlist
    • Join The Army
    • Join The Navy
    • Join The Air Force
    • Join The Marines
    • Join The Coast Guard
    • Join The National Guard
    • ASVAB
    • Army Physical Fitness Test
    • Military Draft
    • Prior Service Army Enlistment
  • Career
    • Join the Military
    • Jobs for Military and Civilians
    • Career Center
    • Prior Service Army Enlistment
    • Criminal Justice
  • Education
    • Online Schools
    • Spouse Education Benefits
    • GI Bill
    • Military Schools
    • Criminal Justice
  • Benefits
    • Army Benefits
    • Navy Benefits
    • Air Force Benefits
    • Marine Corps Benefits
    • National Guard Benefits
    • Coast Guard Benefits
    • Veteran Benefits
    • Basic Pay Rates
    • Allowances
    • Special & Incentive Pay
    • Military Spouse Education Benefits
    • VA Education Benefits
    • GI Bill
  • News
    • Headline News
  • Finance
    • Debt Relief
    • Military Pay Rates
    • Military Personal Loans
    • VA Loans
    • Military Star Card
    • Military MyPay
  • Spouses
    • School Finder
    • Scholarships & Grants
    • PCS, DITY, & Moving
    • Pay Rates
    • MyCAA
    • Education Benefits
  • Community
    • Military Games
    • Military Reunions
    • Classifieds
    • Photo Gallery
    • Buddy Finder
    • MilitarySpot Pinups
    • Military Bases
  • Resources
    • Military Alphabet
    • Military Reunions
    • Military Acronyms
    • Currency Converter
    • Military Tools
    • Ranks
    • Military Time
    • Military Tactics
    • Military Discounts
    • Military Games
    • Military Videos
    • Photo Gallery
    • Infographics
    • How To
  • Travel

DOD Updates Overseas Cost-of-Living Allowance Adjustment Process

MAY 3, 2023 – The Overseas Cost-of-Living Allowance (OCOLA) is an allowance that ensures our Service members who are assigned to a permanent duty station outside the contiguous U.S. (OCONUS) (i.e., foreign countries, U.S. territories, Alaska, and Hawaii) maintain the same level of purchasing power as Service members stationed in CONUS locations — not less purchasing power, but not more either.

The OCOLA rate pays a differential to Service members in OCONUS locations for the increased cost of buying the same non-housing goods and services as are bought in CONUS.

Based upon changes in the cost-of-living data and currency fluctuations (explained below), OCOLA rates increase or decrease over time.

The Department of Defense released updates to the OCOLA adjustment process today, detailing OCOLA adjustments for this year.

These adjustments are based on the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2023.

How OCOLA Rates Are Assessed
The Department updates OCOLA rates based on an assessment of three primary data points:

  • The triennial Living Pattern Survey (LPS), which measures where Service members shop and the proportion of shopping that occurs on a military installation, such as at commissaries and exchanges, at local community outlets, and from online purchases;
  • The annual Retail Price Schedule (RPS), which measures the cost of a 150-item market basket of non-housing goods and services (e.g., groceries and clothing)—local differences in costs for utilities and housing are accounted for separately through the housing allowance—from the outlets where Service members indicate they shop; and,
  • For foreign locations, currency fluctuations, which affect the relative purchasing power in the foreign currency as compared to the U.S. Dollar.

Annually, the Department compares OCONUS LPS and RPS data to the same data collected in CONUS (average CONUS baseline) to establish OCOLA for the OCONUS location.

Based on the new NDAA legislation:

  • The Department will not implement the OCOLA decreases based on cost-of-living data all at once. Any decrease in OCOLA based on cost-of-living data greater than two points will be implemented in 50% increments on two separate dates — during the May 15, 2023 and November 15, 2023 pay periods. The Department will provide notification to Combatant Commanders (CCMDs) and overseas points of contact (POCs), whenever possible, at least 30 days prior to the implementation of the first 50% reduction to ensure affected Service members have time to financially prepare. For the May 15 pay period reductions, CCMDs and overseas POCs were notified of the new rates prior to March.
  • The Department will implement any OCOLA decrease based on currency fluctuations, in full, during the May 15, 2023 and November 15, 2023 pay periods. The Department will continue to inform CCMDs/POCs of the potential effects of currency fluctuations on OCOLA rates throughout the year as the scheduled implementation dates approach to prepare Service members for these changes.

For additional information on the OCOLA program, visit: https://www.travel.dod.mil/Allowances/Overseas-Cost-of-Living-Allowance/

Comments

Filed Under: Benefits, Finance, Money

  • News
  • Enlist
  • Education
  • Career
  • Finance

Navy Unit Celebrates Its Diamond Anniversary

JUNE 12, 2025 – The Naval Ordnance Test Unit celebrated 75 years since being established on June 1, 1950. To help celebrate this historic event, the NOTU Morale, Welfare, and Recreation department hosted a free country-music concert at Cape Canaveral Space Station, Florida. This concert, which took place June 7 near the USS Nathanael Greene […]

Air National Guard Unveils New Bonus Program

MARCH 11, 2023 – On March 1st, the Air National Guard (ANG) launched a new bonus program to attract and retain personnel in critical specialties. The initiative offers significant financial rewards, with bonuses of up to $90,000 for eligible members, depending on their Air Force Specialty Codes (AFSCs). This strategic move aims to strengthen the […]

Education Benefits Make Stronger Service Members

APRIL 3, 2025 – Within the armed forces, a variety of educational benefits are available that allow service members to both improve themselves and make themselves more valuable to their service branch. One example is the Military Tuition Assistance Program. The program is available to enlisted personnel, officers and warrant officers in the Army, Navy, […]

Former Soldier Navigates Job Hunt

NOVEMBER 19, 2024 — In early 2017, Michael Quinn endured what he called the worst day in the worst year of his life. Quinn, then a sergeant major and 24-year Army Soldier, had weathered deployments in Iraq, Afghanistan and the Philippines. As an Army counter-intelligence agent, he said he learned to operate under grave circumstances […]

Step-By-Step Guide to Military Financial Stability

APRIL 8, 2025 — Financial challenges are a reality for many families, especially while serving. However, the following few simple steps can lay a solid financial foundation. Create a budget and stick to it.Setting a budget is essential to prevent financial hardships. When you do not track income and expenses it usually leads to overspending. […]

Recent Posts

  • Navy Unit Celebrates Its Diamond Anniversary
  • Guard to Test New Mobile Brigade Combat Team
  • Understanding Veterans Program in Senior Living Communities
  • Microreactor Reaches Major Project Milestone
  • Coast Guard Assists Sailor Who Lost Mast
MAINMENU




SITESEARCH
Can't find something? Try using our site search to dig through our entire site.



Still having trouble? Try the Advanced Search to refine your searches.
NEWSLETTERSUBSCRIBE
Sign Up To Receive Information, Updates and Special Officers from MilitarySpot.com.



Don't miss an issue! Jump in the Newsletter Archives to catch up on previous issues.
FOLLOWMILITARY SPOT

Follow us on Facebook, Twitter & StumbleUpon and more. Keep up with MilitarySpot.com news & updates. We also have an RSS Feed.

Advertise | About | Contact | Feedback | Unsubscribe | DMCA | Privacy Policy | Terms of Use
 
Copyright 2004-2025 Sun Key Publishing. All Rights Reserved.



 
This is not the official recruiting website of the U.S. Military. The site you are on is run by Sun Key Publishing, a private company, and is not endorsed by or affiliated with the U.S. Military.