Cost of Living Adjustment

Definition

  • A system where salaries and benefits adjust to keep pace with inflation and changes in the cost to live based on an index such as the Consumer Price Index. Cost of living adjustments are generally made annually, and they are used in some employment contracts and pension plans.

Synonyms
raises, payment increase, inflation adjustment

Acronyms
COLA

Related Terms and Acronyms

  • Commission (comm) Abbreviation,
    • A fee paid to a salesperson for selling a product to a customer.
    • An agent's fee for negotiating a real estate or mortgage loan transaction, often expressed as a percentage of the selling price.
  • Consumer Price Index (CPI) Acronym, Important,
    • An index that measures movements in the average price of products and services typically consumed by Canadian families.
  • Index Definition,
    • A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes.
  • Inflation Definition,
    • A rise in the average level of prices in the economy.
  • Inflation Protection Definition,
    • A protection found in some insurance policies that allows policy limits to increase with inflation.
  • Seasonal Unemployment Definition,
    • The loss of jobs due to changes in the climate and other conditions. Forestry, fishing and construction are affected by climate, while retailing is affected by seasons and holidays. For instance, at Christmas, retail employment is higher than in January.
  • Unemployment Rate Definition,
    • The percentage of the labour force that is not employed but currently seeking work.
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