COLA rates to increase in October Published Oct. 23, 2013 52nd Fighter Wing Public Affairs SPANGDAHLEM AIR BASE, Germany -- Due to the rising imbalance in exchange rates between American and most European currencies, the Overseas Cost of Living Allowance is projected to increase by as much as four percent by the end of October. According to the Defense Travel Management Office's website, COLA rates are determined by the Department of Defense and regularly calculated by comparing the prices of goods and services overseas with average prices for equivalent goods and services in the continental United States. The non-taxable allowance paid by the DoD totals approximately $2 billion to more than 250,000 service members at 600 locations overseas including Alaska and Hawaii, according to a DTMO survey. For more information, visit http://www.defensetravel.dod.mil/index.cfm. How to check your monthly COLA rate: 1.) Go to Defense Travel Management Department website overseas COLA calculator at http://www.defensetravel.dod.mil/site/colaCalc.cfm 2.) Under "Select Pay Period," select the year, month and period (either 1st through 15th or 16th to the end of the month. 3.) Under "Location," select your base, for example "Germany, Spangdahlem (RP), GM741" 4.) Under "Member Information," select pay grade, years of service, number of dependents, and whether you live in government housing. Then click "Calculate." 5.) Once you click "Calculate," your COLA will be displayed for the pay period you selected. To figure the monthly total, repeat steps 2-4 using the other pay period and add the amount to your first figure. However, this new monthly total takes into account you were stationed at this base for the entire month.