The Japanese yen’s recent gains on the dollar will fatten cost-of-living allowances for servicemembers in mainland Japan and Okinawa by as much as six points in some locations.
COLA jumped four points Thursday on Okinawa, Camp Zama, Misawa Air Base, Yokota Air Base, Sasebo Naval Base and Marine Corps Air Station Iwakuni, among other locations. It’s up six points for servicemembers stationed in Tokyo, in Yokohama and at Yokosuka Naval Base.
Servicemembers will see the increase in their next paychecks.
"Usually when our economy isn’t as strong, the dollar value goes down and that’s exactly what’s happened here," said U.S. Forces Japan locality coordinator Ron Stewart.
The allowance a servicemember receives depends on location, rank, years of service and family size.
As of Thursday, the Pentagon’s per diem committee had yet to post online new COLA figures that allow individual servicemembers to calculate their allowances.
In general, however, two points equates to an extra $50 per pay period for an E-6 with 10 years of service and three dependents.
The increase comes after the yen this month dropped to 96 against the greenback at military banks.
Sailors at Naval Air Facility Misawa in northern Japan welcomed the COLA boost.
Petty Officer 1st Class Gio Espinosa, 32, said he hasn’t seen much of an increase in his allowance in about five months. The poor dollar-to-yen exchange rate and high gas prices are a financial burden, he said, estimating he forks out about $50 every two weeks just to drive on base.
"If COLA is going to go up at the end of the month, it will help out," he said. Because he has two dependents, a four-point gain will likely be an extra $150 to $200 in his pocket, Espinosa said.
For Seaman Apprentice Andrew Smith, 19, a single sailor at Misawa, more COLA will come in handy for meals off base, he said. A master of arms, Smith is a shift worker who eats out a lot, he said.
"The COLA, I think it should be a little bit higher," he said. Especially when the exchange rate dropped below 100, "you do feel it."
With the biggest decline in U.S. retail sales in three years reported in September, some economists say the yen could further strengthen against the dollar.
