The cost-of-living allowance for most Europe-based servicemembers will decrease for the second half of January, in some cases, by more than $150 a month.
Most Europe-based troops will see a six-point drop in COLA rates, according to a posting on the Per Diem, Travel and Transportation Allowance Committee Web site. Other locations, such as Vicenza, Italy, and the United Kingdom, will see a four-point drop.
A one-point increase or decrease is roughly $25.
For example, the COLA for an E-5 with eight years of service, three dependents, and stationed in Naples, Italy, will decrease $152.01 a month. An airman in the same situation and living at RAF Mildenhall, United Kingdom, will see his paycheck drop by $101.33 a month.
The reason for the decrease is the strengthening dollar against the euro, according to Army finance officials. Since the beginning of December, the dollar has gained more than 3 cents against the euro.
The post allowance for U.S. civilians in Europe is unchanged.