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U.S. servicemembers stationed in Germany will receive two Cost of Living Allowance adjustments, resulting in no change to most servicemembers’ COLA for both May pay periods.
The first adjustment reflects the previously reported COLA decrease due to recent consumer data highlighting a higher rate of inflation in the U.S. when compared to Germany.
“The second adjustment reflects an increase to COLA due to unfavorable exchange rates between the Euro and U.S. dollar,” said Capt. Chris Velez, U.S. Air Forces in Europe Financial Management Directorate, Financial Services Division.
COLA is a supplement designed to equalize the purchasing power between members overseas and their stateside-based counterparts.
For planning purposes, members should keep in mind that those stationed in Germany are still slated for a June 1 COLA decrease of approximately six to seven percent due to the consumer data.
It is too early to predict if this change will be off-set by another exchange rate adjustment.
