Question

Do you believe that anyone receiving an income from employment should receive a cost-of-living adjustment(COLAs), each year? Explain your thoughts.

Answer 1

Cost of living adjustment is made to Social Security and Supplemental Security Income to decrease the effects of inflation This is calcuated by taking into account the changes in the consumer price index for urban wages and claerical workers CPI-W. When the inflation increases then these organisations provide extra income to employees.

The cost of living adjustment is an increase in income that keeps up with the cost of living. Cost of living is applied to wages, salaries, and benefits. These benefits are provided by union agreements, executive contracts, and retiree benefits.This benefit thus provide support of maintaing the living standard of the employee