Goods & Services Differential (G&S)

Often this term is used interchangeably with Cost of Living Allowance (COLA) or Commodities and Services Allowance. G&S represents the difference in costs for commodities and services between the home country and host country locations, and these differences may change during the term of the assignment. Companies normally contract with a service provider to shop G&S on a regular basis for changes in prices and to adjust the differential for changes in exchange rates.