Cost-of-Living Adjustment (COLA)

A change to pay intended to keep up with the rising cost of living or a move to a pricier location.

A Cost-of-Living Adjustment (COLA) raises pay to offset inflation or a relocation to a more expensive area. On location-based pay models, moving cities can trigger a COLA up or down.

If you plan to relocate while remote, ask how the company handles COLA — policies range from full adjustment to none at all.