Perhaps, you may not have heard about “BAH” and “COLA”, but both form part of the generous, housing benefits that all branches of the US Military offer their enlisted, active-duty personnel.
Both, BAH – Basic Allowance for Housing, and COLA – Cost Of Living Allowance, are offered by way of adequate monetary packages, in addition to basic pay and other standard benefits. BAH enables active-duty personnel find suitable off-base housing for their families, while COLA helps personnel meet higher costs of living, depending on WHERE they choose to reside, or are deployed to.
Who is entitled to BAH?
The military offers BAH to personnel who may not find on-base housing convenient or suitable for their families, OR when standard, on-base housing units or apartments are not available. The amount of BAH assistance disbursed is dependent on seniority, pay grade, location and rank of the enlisted member, and is also contingent on the number of dependents that a member has.
How is COLA disbursed?
The criteria for disbursement of COLA is similar to that of BAH, except that it is intended to help military personnel cover higher costs of living which includes food, clothing, transportation and other miscellaneous expenses on non-housing items. The amount of COLA disbursed is computed on the basis of the cost of living in the particular city/state of the US or the country where US servicemen are deployed. The US Military maintains a list in excess of 40 state locations that they label as ‘high cost’ i.e., such states where the average cost of living across the US is exceeded by 8% or more.
