Cost of living increase, and in its abbreviated terms, COLA, adjusted yearly according to the yearly budget, is an increase in income to mitigate rising prices and to maintain a specific standard of living.
The adjustment to the cost of living comes into effect in January of the following year.
A full-time employee is entitled to the full increase, pensioners are awarded another weekly amount over and above the cost of living increase and part-time employees receive the cost of living bonus from their employers in proportion to the hours worked.
For year 2022, employees as well as pensioners got an increase of €1.75 weekly. Furthermore pensioners are benefitting from a further increase of €3.25 per week, over-and-above the cost of living increase, thus total increase for pensioners amounts to €5.00 weekly.
There are pensioners who received a difference of €6.75 – more than €5 in view of changes to the cost of living bonus.
Conclusion – Cost of living adjustment provisions increase wages, pensions, etc., in proportion to price increases but do not forget that rising prices can be compensated in advance, by watching and tracking your spending!