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The Overseas Cost-of-Living Allowance has increased for Ramstein Air Base and other bases in the Kaiserslautern Military Community. Military members will see the change reflected on their August 15, 2024 paycheck.
The allowance rates vary based on rank, years of service, number of dependents and currency exchange rates. For example, using current OCOLA and currency exchange rates, payments to a technical sergeant who resides off base with 10 years of service and three dependents would receive $159.00 per pay period. The same service member – without considering currency exchange rate fluctuations – would receive $318.00 per pay period after the August OCOLA rate increase.
The purpose of the OCOLA program is to maintain economic parity between service members stationed in and outside the continental U.S. to offset higher costs of living while stationed overseas.
The OCOLA program takes factors such as inflation rates and currency fluctuations into account. Results from November 2023’s retail price schedule were recently approved by the services and published by the Office of the Secretary of Defense. These figures, combined with 2021’s Living Pattern Survey data and CONUS pricing, resulted in a significant OCOLA increase for many locations across Germany, including the KMC.
Because OCOLA is not a fixed amount and fluctuates regularly, DoD officials advise service members to base their fixed expenses, such as rent and car payments, on what they can afford without relying on OCOLA. This approach ensures service members maintain stability in their finances regardless of OCOLA rates.
Ramstein leaders also encouraged members of the Kaiserslautern Military Community to participate in the next Living Pattern Survey, which will open September 2024, to ensure their purchasing habits are accurately captured.
“Data collected from the November’s Retail Price Schedule resulted in this significant OCOLA increase,” said U.S. Air Force Lt. Col. Josh Mann, 86th Comptroller Squadron commander. “By taking a few minutes to complete the upcoming Living Pattern Survey, Airmen and their families can provide an accurate depiction of the true cost of living abroad and play a crucial role in shaping the benefits that matter most for themselves and their fellow KMC members.”
Military members are encouraged to review their leave and earnings statements regularly and take advantage of the various financial planning resources offered to ensure financial success.
Additional information on the OCOLA program can be found by visiting the Defense Travel Management Office website.