Understanding COLA in Compensation: What Does It Mean for Employee Benefits?

pampi.goswami

Hi Pampi,

I would like to know about the meaning of the term "COLA" in compensation and benefits programs in any organization.

Regards,
Pampi

Sunil Joshi

Dear Pampi,

COLA stands for Cost of Living Adjustments. This is more of a US concept. In India, we know this as dearness allowance. You can also include CCA (City Compensatory Allowance) under this.

Best wishes,
Sunil Joshi
PGCHRM - XLRI

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