Cost of Living Adjustment (COLA): Calculating Cost of Living Adjustment (COLA)

Each year the federal government establishes a cost of living percentage based on the percent change in the Consumer Price Index for Urban Consumers (CPI-U) as published by the Department of Labor. The CPI-U measures changes in the cost of goods and services that affect daily living expenses.

Requirements for COLA adjustment

• Child support orders must be at least two years old, and
• The sum of the CPI-U percent changes for each year since the most recent order was issued is equal to or greater than 10%

Calculating COLA adjustment

To calculate the adjustment amount, multiply the support obligation amount by the sum of the CPI-U percentages. Then, add this amount to the existing support obligation amount to establish the new obligation amount.