cost of living adjustment

noun [C] (abbreviation COLA)

Definition

› ECONOMICS, HR an increase in a person's wages, pension, etc. that is made once a year according to how much the prices of things such as food, transport, and housing have increased: Because of falling consumer prices, the government recently announced that there will be no cost of living adjustment (COLA) for Social Security recipients this year.

(Definition of cost of living adjustment noun from the Cambridge Business English Dictionary © Cambridge University Press)