Cost-of-living adjustment
Cost-of-living adjustment is the negotiated compensation increase given an employee based on the percentage by which the cost of living has risen, usually measured by a change in the consumer price index (CPI).
Definitions
According to Labor Relations and Collective Bargaining by Michael R. Carrell and Christina Heavrin (10th edition),
- Cost-of-living adjustment. The negotiated compensation increase given an employee based on the percentage by which the cost of living has risen, usually measured by a change in the consumer price index (CPI).
According to the HRBoK Guide,
- Cost-of-living adjustment (COLA). Pay change due to economic conditions. An increase or decrease in pay based on changes in economic conditions in a geographic location or country.
Related concepts
- Labor relations. The systematic study of attitudes, motivations, and behaviors which two or more job-market actors assume toward each another.
