Domestic Cost of Living
April 2022
Cost of living, or the cost of basic expenses in a particular location, is often a factor in deciding to accept a relocation. The costs
of food, housing, utilities, transportation, taxes, common retail purchases, and healthcare are often considered when determining
a location’s cost of living.
Some employees moving to areas that are determined to be higher cost locations will receive a cost-of-living allowance or COLA.
This can be referred to by several other names, and there are several ways the amount of the allowance is determined. COLAs are
a staple in expatriate programs, often focusing on goods & services (food, retail purchases, and basic household services) and
housing; however, COLAs are also found in domestic employee mobility programs, especially within companies that move people
from lower cost areas to higher cost areas.
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