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Military Pay Rates – A Comprehensive Overlook

With one of the biggest military forces in the world comes a behemoth of the military budget, which is also referred to as the “defense budget.” Having a good military pay rate ensures military personnel on the field that their family is taken care of while they defend the nation.

Military Pay Rates – A Comprehensive Overlook
And to encourage them further, the current military pay chart shows a 2.7% increase. Let us understand the breakdown of these pay rates.

Basic Pay
The base salary counts as part of the total income of the military personnel on active duty. It is electronically distributed on the 15th day of every month like other civilian jobs. The basic pay, being similar to civilian jobs, depends on the length of service and rank. Other factors that affect the pay include annual pay raise, longevity raises, promotions, Basic Allowance for Housing (BAH), Basic allowance for subsistence (BAS), Cost of Living Allowance (COLA), and Special Pays based on occupations like combat, fight, and hazardous duty. According to the current military pay chart, the BAS rates for enlisted service members and officers are around $371 and $256, respectively.

Reserve and guard pay
Also referred to as drill pay, the compensation of being in the reserve unit in the Army or Air National Guard is less than the full-time pay, as this commitment is only on special training sessions and weekends.

Special pay
Besides allowances and basic pay benefits, military personnel receive special incentive pay, depending on their career field and location when they first join the force. Qualification is based on assignments and certain skills. Additionally, being assigned to specific duties like EOD technician or shipboard tie-down crew makes them eligible for hazardous duty pay. Some of the most common special pay benefits include Aviation Career Incentive Pay, Aviation Continuation Pay, Career Enlisted Flyer Incentive Pay, Diving Duty Pay, and Flight Pay, among others.

Military allowances
Military allowances are an additional incentive apart from enlisted military pay rates. Military allowances can be a major portion based on location, rank, status, and military pay scale. These types of allowances are tax-free and designed to compensate service members deployed in places where living conditions are not optimal. 

Following are some types of allowances:

  • Clothing allowance
    The allowance can be used for payments related to uniform purchases and maintenance.
  • Dislocation allowance
    Dislocation allowance is for personnel undergoing PCS orders or other required moves and allows for partial reimbursement of expenses.
  • Overseas cost of living allowance
    Overseas cost of living allowance is a non-taxable payment designed to compensate for higher overseas prices of non-housing goods and services.
  • Military retired pay
    Unlike most retirement plans, military personnel can receive a pension or reduced compensation with benefits from the day they retire. This means, one can start collecting a regular retirement pension as early as 37 years of age. The best part about retired pay is the check can grow to adjust the cost of living each year.

Here is why it is essential to understand your military pay rate
It is estimated that the country’s military distributes paycheck to roughly 1.4 million service members twice a month. Most of the data entry associated with the dispersed payments is internally handled by other service personnel, including the ones who are learning the ropes of their jobs. Hence, there might be a possibility of errors that can affect how military personnel is paid.

  • Do this when over-paid or under-paid
    When the wrong amount is deposited in the bank account, it is crucial to immediately notify the chain of command to ensure corrective action. Over-payments are usually recouped in subsequent paychecks, often all at once or through a payment plan. Similarly, underpayments are compensated in the next paycheck. However, one can ask for a special payment to be dispersed in case of emergencies to correct underpayments.
  • If the incorrect amount goes unnoticed
    There are numerous factors affecting military pay rates. Hence, one might miss discrepancies related to payments. The wrong payment can also go unnoticed when the pay fluctuates due to PCS or deployment. When over-payments go unnoticed and some from internal quality assurance spots the discrepancy, they might recoup from the next paychecks without prior notice. This is usually termed “checkage” and can be uncomfortable, especially when other payments are already lined up. Hence, it is important to always double-check according to the current military pay chart whenever the payment is credited.

Are there military pay charts for different armed forces?
There are no separate Navy or Air force pay charts, as the pay rates are common for active marines, navy, army, and air-force members. The military pay rates are based on pay grade and years of service. 

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