Cost-of-living payments for some Europe-based servicemembers will increase starting Monday — in some cases by roughly $50 a month.
That means, for example, that the COLA for an E-5 with 8 years’ service, three dependents and stationed in Naples, Italy, will see a slight increase of nearly $1.60 a day.
Earlier this week, U.S. civilians working in Germany, the Netherlands, Belgium and some parts of Italy got word of an increase in their cost-of-living allowance — known as post allowance.
In Germany and the Netherlands, a worker with three dependents earning $45,000 a year will see a $52 a paycheck increase — about a 16 percent jump.
That same worker in the Netherlands will see a $72 increase from one paycheck to the next. The increase was necessary because of the dollar’s recent declines against the euro, according to the U.S. State Department’s Web site.
In Italy, however, only the communities of Florence, Milan, Turin, Nettuno and Rome will get an increase.
And despite the weakening dollar, the U.S. Navy in Italy announced Friday that troops should be prepared for a possible decline in the COLA payments, starting in mid-August.
The anticipated August rate changes are based on the fact that the overall cost of goods in the U.S. is rising at a greater rate than in Italy, as well as the results from the March 2009 Retail Price Survey and Living Pattern Survey.
If approved, servicemembers stationed in Gaeta, Ghedi and Latina could see the biggest decrease; an eight-point drop, done incrementally over four months, beginning Aug. 16, according to a Navy news release. One point equals roughly $25 a month, but the actual values vary depending on rank, years of service and number of dependents.
Members of the Per Diem, Travel and Transportation Allowance Committee briefed an Italy-based military advisory panel in Naples on Tuesday on the possible COLA rate drops. The change isn’t yet decided, but Navy officials wanted to notify members of the possible decreases so they can plan accordingly, said Lt. Cmdr. Wendy Snyder, a Navy spokeswoman.
If the Per Diem committee decides the rates will drop, personnel stationed in Naples and Sigonella could see the first of what will likely total a six-point drop, done over a three-month period, starting in mid-August, the release stated.
The anticipated reductions will take place at a rate of two points per month until the total decreased amount is reached.
Troops in Livorno and Vicenza could see a four-point drop, while those in Aviano a two-point decrease.
