Military Pay

Information about U.S. Military pay and benefits: Military Allotments Military Loans Military myPay Military Pay Newsletter U.S. Military Paydays 2009 U.S. Military Basic Pay Chart 2009 NEW U.S. Military Basic Pay Chart 2008 U.S. Military Reserve Drill Pay Chart 2008 (PDF)

Understanding Military Pay

Military compensation is a complicated system with many facets that affect how much a servicemember earns. To best understand what you'll make, it helps to know that the most important components of compensation in the Military are pay and allowances. Take some time to familiarize yourself with the various types of pay and allowances available to Service personnel.

Pay

Basic pay is received by all and is the main component of an individual's salary. It is the same at each pay grade across all of the services branches. A member's grade (usually the same as rank) and years of service determines the amount of basic pay received. Special pays are for specific qualifications or events. For example, there are special pays for aviators and parachutists; special pays are also paid for dangerous or hardship duties. Additional pays may be awarded to servicemembers with foreign language fluency or other career skills deemed necessary at a given time.

Allowances

The second most important element of military compensation is allowances, which are monies provided for specific needs, such as food or housing. Monetary allowances are provided when the government does not provide for that specific need. For example, military members and their families who live in government housing do not receive full housing allowances. On the other hand, those who do not live in government housing receive a Basic Allowance for Housing (BAH) to assist them in obtaining commercial housing. The BAH amount varies based on the cost of living in the area to which a servicemember is assigned. Basic Allowance for Subsistence (BAS), which offsets the cost of a servicemember's meals, is another common allowance. A majority of the force receives both of these allowances, and, in many cases, these allowances comprise a significant portion of the member's total pay. Most allowances are not taxable, which is an additional imbedded benefit of military pay.

Basic Allowance for Subsistence (BAS)

BAS is meant to offset costs for a member's meals. This allowance is based in the historic origins of the military in which the military provided room and board (or rations) as part of a member's pay. This allowance is not intended to offset the costs of meals for family members. Beginning on January 1 2002, all enlisted members get full BAS, but pay for their meals (including those provided by the government). This is the culmination of the BAS Reform transition period. Because BAS is intended to provide meals for the service member, its level is linked to the price of food. Therefore, each year it is adjusted based upon the increase of the price of food as measured by the USDA food cost index. This is why the increase to BAS will not necessarily be the same percentage as that applied to the increase in the pay table, as annual pay raises are linked to the increase of private sector wages. The following Basic Allowance for Subsistence (BAS) rates are the new rates effective Jan. 1, 08. Officers $202.76/month Enlisted Members $294.43/month

Annual Pay Raise

Annual military pay raises are linked to the increase in private sector wages, as measured by the Employment Cost Index (ECI). In the 1990's, the annual military pay raise was capped at one-half percent below private-sector growth unless specifically granted a larger increase by Congress. The FY2000 National Defense Authorization Act directed that pay raises for 2000 through 2006 would automatically be one-half percent above the private-sector wage increases. Pay raises beginning in 2007 are equal to the increase in the ECI. Pay raises may exceed these automatic levels if authorized and funded by Congress. In January 2008, the military pay raise was 3.5% (ECI + 1/2 percent).

(Source: US Department of Defense)