Overseas or Station Allowance Entitlements 

Many allowances are location specific and payable to those stationed outside the Continental United States, also known as OCONUS. We will be covering four of the most common allowances. 

Cost of Living Allowance (COLA)

The cost of living is higher for those service members serving outside of the continental United States (OCONUS). When the cost of living is higher than CONUS, the member will receive an Overseas Cost-of-Living Allowance (COLA). Overseas COLA is non-taxable. This special allowance is provided to help offset the higher prices of non-housing goods and services OCONUS. This allows a more equalized purchasing power with members stationed in CONUS. The amount of COLA is based on many factors, such as the member’s grade, dependency status, a COLA index that measures the difference in CONUS and OCONUS prices, and local exchange rates for the duty station’s country. Fluctuation in rates can change as often as each payday as there are times where the currency rates can fluctuate daily in some countries. 

The DODFMR VOLUME 7A, Chapter 68 governs the rules and authorization for the payment of COLA. You can use the Overseas COLA Rate Lookup tool from the Defense Travel Management Office website to see current COLA amounts. You can learn more about the behind the scenes data collection and surveys used in determining COLA at Data Collection & Surveys Overseas COLA.

Overseas Housing Allowance (OHA)

The Overseas Housing Program allows authorized service members to lease privately-owned housing while assigned to a permanent duty overseas.

The OHA is a cost-reimbursement allowance and its purpose is to offset housing costs. 

There are three separate components for OHA:

  • rent
  • utilities/recurring maintenance
  • move-in housing allowance (MIHA

OHA paid monthly includes the rental allowance based on the actual rental amount, not to exceed a maximum amount, and a utility and recurring maintenance allowance. However, MIHA/Miscellaneous is an upfront, lump sum payment based on the average move-in costs for a service member. 

Entitlement to OHA is covered in paragraph 6 of the DODFMR Volume 7A, Chapter 26 and you can see current OHA rates at OHA Rate Lookup.

Temporary Lodging Allowance (TLA)

There may be times when it is necessary for a service member to stay in temporary lodging OCONUS. The member may experience higher than normal expenses while there, and that is when Temporary Lodging Allowance (TLA) comes in. It is intended to pay a portion of those additional expenses. When the service member or dependent occupies temporary lodging upon arriving or immediately before departing from a permanent duty station (PDS) OCONUS, TLA will be available to them. There may be other time periods where TLA may be needed, and you can find that in DODFMR Volume 7A, Chapter 68, see paragraph 4.

The number of days this allowance is payable is determined by the senior commander or designee in the local area or country. Each installation will have written guidance to manage the availability and management of temporary lodging. The computation of TLA is rather complex with a number of variables determining the rate payable and is covered in detail in paragraph 6 of the DODFMR Volume 7A, Chapter 68. An informative TLA guide is available at Temporary Lodging Allowance (defense.gov). 

Military Pay & Entitlements Series
1. Introduction
2. Basic Pay
3. Basic Allowance for Subsistence (BAS) – Food Allowance
4. Basic Allowance for Quarters (BAH) – Housing Allowance
5. Common Deductions
6. How to Read Your Leave and Earnings Statement (LES)
7. Uniform and Clothing Allowances
8. Cost of Living Allowance (COLA)
9. Special and Incentive Pays
10. Additional Special and Incentive Pays
11. Overseas or Station Allowance
12. PCS and Travel
13. Special Situations

Military Pay & Entitlements Series – Printable Version of the Whole Series

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