5 CFR § 591.206 - How does OPM establish COLA areas?

---
identifier: "/us/cfr/t5/s591.206"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "5 CFR § 591.206 - How does OPM establish COLA areas?"
title_number: 5
title_name: "Administrative Personnel"
section_number: "591.206"
section_name: "How does OPM establish COLA areas?"
chapter_name: "OFFICE OF PERSONNEL MANAGEMENT"
subchapter_number: "B"
subchapter_name: "CIVIL SERVICE REGULATIONS"
part_number: "591"
part_name: "ALLOWANCES AND DIFFERENTIALS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
cfr_part: "591"
---


# 591.206 How does OPM establish COLA areas?

(a) OPM designates, within nonforeign areas, areas where agencies pay employees a COLA by virtue of living costs that are substantially higher than those in the Washington, DC, area. In establishing the boundaries of COLA areas, OPM considers—

(1) The existence of a well-defined economic community,

(2) The availability of consumer goods and services,

(3) The concentration of Federal employees covered by this subpart, and

(4) Unique circumstances related to a specific location.

(b) If a department or agency wants OPM to consider establishing or revising the definition of a COLA area, the head of the department or agency or his or her designee must submit a request in writing to OPM.