DoD Overhauls Overseas COLA Policy, Leading to Pay Decrease for Some Military Members

Army Recruiting 62941 Scaled

Military service members stationed in most overseas locations are set to see decreases in their take-home pay starting in June because of changes in how the Defense Department calculates their cost of living adjustments (COLAs).

At issue are the overseas COLAs the Pentagon uses to ensure members outside the continental U.S. get compensated fairly. The basic idea is to make sure people stationed in Hawaii or Germany have the same purchasing power for day-to-day needs as their stateside peers at the same rank.

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