Cost of Living Allowance

Calculation
The cost of living allowance (COLA) is an amount derived by applying the cost of living index to the portion
of net income that goes into these expenditures. Mercer’s automated COLA calculator will allow you to
determine the COLA, whilst taking into account the income level and family size of the expatriate.
Furthermore you have the choice of applying any one of Mercer’s cost of living indices. The resulting
calculation will provide you with an easy to apply figure that corresponds to the amount that protects the
home country purchasing power.

For further information visit www.imercer.com/mobilitycalculations or contact your local Mercer

consultant.

Copyright 2014 Mercer LLC. All rights reserved.

 Mercer - Cost of Living Allowance Results
Cost of Living Allowance Input Details
Survey date March 2014 Survey
Index basket Mercer International Basket

Base city / country CITY 1

Host city / country CITY 2

COL index (Mean to Mean) 117

Gross Salary amount (CAD) 130,000
Exchange rate (01/03/2014) 1 CAD = 0.741653 EUR

Marital status / family size Married with 1 child

Spendable income portion of net salary 47.19%

Base Location Host Location

Cost of Living Allowance Results (CAD) (EUR)
Gross salary 130,000 96,415
Net salary (based on March 2014 tax data) 85,778 63,617

E
Spendable income 40,479 30,021
Recommended cost of living allowance 6,881 5,104
Adjusted spendable income
Net salary
PL 47,360
92,659 68,721
M
Disclaimer:
Mercer LLC. has made reasonable commercial efforts in order to offer the most current information. The calculation is provided on an
"AS-IS" basis. This calculation result is provided for information purposes only and is not intended or implied to be a substitute for
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professional advice. In no event shall Mercer LLC. be liable for any damages, losses or expenses, including without limitation, direct,
indirect, special, incidental, or consequential damages arising in connection with the use or interpretation of the information contained
herein. Mercer LLC is not a professional tax adviser, and therefore, the calculation is not intended as a substitute for tax advice.
Accordingly, Mercer recommends that the advice of a professional tax advisers is sought with respect to any tax matters.

© 2002 - 2014 Mercer LLC, All Rights Reserved.

© 2014 Mercer LLC

March