Cost of Living

"Cost of living" in the context of compensation and benefits refers to the amount of money required to cover basic expenses like housing, food, taxes, and healthcare in a specific location and time period. It is a crucial factor in determining fair employee compensation, especially in dynamic environments where living expenses can fluctuate due to inflation. Cost of Living Adjustment (COLA) is a systematic adjustment made to an employee's salary or compensation to counteract changes in the cost of living, ensuring that employees can maintain their purchasing power despite rising prices for goods and services