How to Calculate 15% Cost of Living Allowance (COLA)

How to Calculate 15% Cost of Living Allowance (COLA)

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After teachers embarked on Strike and various labour agitations for a 20% Cost of Living Allowance, the government of Ghana has granted a 15% Cost of Living Allowances (COLA) to cushion all public sector workers. This is due to the current socio-economic realities and global developments that are affecting the lives of ordinary Ghanaian workers in the year 2022.

The Payment of Cost of Living Allowances (COLA) was introduced by the late President John Evans Atta Mills.

Concerned citizens are Asking If This Outfit Is Appropriate for A Primary School Teacher?

Like the majority of allowances, COLA has no impact on SSNIT. It serves as a buffer between employees and the harsh repercussions of economic turmoil.

The COLA amount is the amount equal to your retention premium and this was the only allowance that was enjoyed by teachers way back. The Retention Premium is also 15% of the basic salary. Also, the base pay known as the single spine is going to be calculated based on 15% of the single spine monthly salary.

For instance, if the single spine monthly salary on the payslip is GHC 1954.90. Take 15/100 × 1954.90= GHC 293.24. This figure will be the same as your retention premium.

It is important to note that the GHC 293.24 will be paid every month from July up to December and there will be no SSNIT deductions. In short, the 15% COLA is non-taxable.

How to Determine COLA On Payslip

The retention premium amount listed on your pay slip corresponds to the amount of the COLA you will get.

Earners within this range should check out the calculation of COLA below:

Source: educandghana.net

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