United States military pay

Last updated

United States military pay is money paid to members of the United States Armed Forces. The amount of pay varies according to the member's rank, time in the military, location duty assignment, and by some special skills the member may have.

Contents

Pay will be largely based on rank, which goes from E-1 to E-9 for enlisted members, O-1 to O-10 for commissioned officers and W-1 to W-5 for warrant officers. Commissioned and warrant officers will be paid more than their enlisted counterparts. Early pay grade promotions are quite frequent, but promotions past E-4 will be less frequent.

Pay versus allowances

There are two broad categories of military pay: "pay" and "allowances". Typically, pay is money which is based upon remuneration for employment, while allowances are money necessary for the efficient performance of duty. Generally speaking, pay is income, while allowances are reimbursement. In the landmark case Jones v. The United States, the United States Court of Claims decided that military allowances are not "of a compensatory character" and "not income as well". [1] Since it was determined that allowances are not income, they cannot be taxed, divided, or garnished, while pay can be. (42 USC 659, et seq.)

Method of pay

Typically members are paid on the 1st and 15th day of each month. If the 1st or 15th of the month falls on a Saturday, Sunday, or federal holiday the member is paid the first business day before. The monthly pay statement is known as a "Leave and Earnings Statement" (LES), which is usually available near the end of each month. The money is directly deposited into a member's personal banking account. The payment on the 15th is known as "mid month pay", and the pay on the 1st is "end of month pay". (End of month pay used to fall on the last day of the month, but in 1990 was moved one day to the first to save money in a fiscal year.)

Major components

There are a few components which most military members receive.

Basic pay

Also known as "base pay", this is given to members of the active duty military on a monthly basis and is determined by their rank (or more appropriately their pay grade) and their length of time in military service. Basic pay is the same for all the services.

37 USC 1009 provides a permanent formula for an automatic annual military pay raise that indexes the raise to the annual increase in the Employment Cost Index (ECI). The fiscal year 2010 president's budget request for a 2.9% military pay raise was consistent with this formula. However, Congress, in fiscal years 2004, 2005, 2006, 2008, and 2009 approved the pay raise as the ECI increase plus 0.5%. The 2007 pay raise was equal to the ECI.

A military pay raise larger than the permanent formula is not uncommon. In addition to across-the-board pay raises for all military personnel, mid-year, targeted pay raises (targeted at specific grades and longevity) have also been authorized over the past several years.

Reserve/National Guard "drill" pay

According to Title 37 United States Code §206, the basic pay amount for a single drill is equal to 1/30 of the basic pay for active duty service members. [2]

For members of the Reserve components of the United States Armed Forces performing duties with their units on drill weekends, pay is usually based on four drill sessions of four hours per session, equal in pay to four days of active duty basic pay.

Common allowances

Beginning on 1 January 2002, all enlisted members receive full BAS, but paid for their meals (including those provided by the government). It was 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 basic pay, as annual pay raises are linked to the increase of private sector wages. As of 2024, enlisted members receive $460.25; officers receive $316.98 per month.

Enlisted BAS II. Enlisted members on duty at a permanent station and assigned to single (unaccompanied) government quarters, which do not have adequate food storage or preparation facilities, and where a government mess is not available and the government cannot otherwise make meals available, may be entitled to BAS II. The rate for BAS II is fixed at twice the rate for standard enlisted BAS. Effective 10 February 2006, the Navy authorized the payment of BAS II. Effective 1 October 2010, the Air Force authorized payment of BAS II to members at specific locations.

Pay raises

U.S. code dictates a rather complex equation for military pay raises, based on the Employment Cost Index, a measure compiled by the Bureau of Labor Statistics to track the costs of labor for businesses. Military pay increases by "the percentage (rounded to the nearest one-tenth of one percent) by which the ECI for the base quarter of the year before the preceding year exceeds the ECI for the base quarter of the second year before the preceding calendar year (if at all)". Specifically, the code states that the ECI for wages and salaries of private industry workers will be used.

Essentially, when the ECI goes up, so does military pay, so that military salaries do not fall behind civilian ones. For example, because the ECI increased 1.4 percent in 2009, that was the military pay raise in 2010. That raise was unusually low — the smallest percent change since the series began in 1975, according to the Bureau of Labor Statistics.

The president is empowered to suggest a lower or higher pay raise, which must be ratified by Congress, in extenuating circumstances like an economic crisis. Congress can also vote to change the president's proposed decrease or increase. For the 2011 budget, the House Armed Services Committee suggested boosting the 1.4 percent raise. But Defense personnel officials resisted, saying they would rather that money be used for other programs that benefit military families. After an 11-year string of increases that slightly exceeded average private sector annual raises, Army Deputy Chief of Staff for Personnel Lt. Gen. Thomas P. Bostick said that, "We actually think we have a surplus in terms of pay." The Department of Defense announced increases in military housing allowances, family support programs, and child care and tuition assistance for military families in the 2011 budget request, many of which outpace the base pay increase.

Special pay

A member may be eligible for some of the following pays depending on rating (MOS) and assignment (location and duty).

Historic pay raise chart

Ref [4] [5]
YearMilitary pay
raise percent
Average private
sector raise
Pay gap
19765.09.02.6%
19773.67.04.8%
19786.26.84.5%
19795.57.56.5%
19807.07.87.3%
198111.79.14.7%
198214.39.1-0.5%
19834.08.13.6%
19844.05.65.2%
19854.05.16.3%
19863.04.47.7%
19873.04.28.9%
19882.03.510.4%
19894.13.59.8%
19903.64.410.6%
19914.14.410.9%
19924.24.210.9%
19933.73.710.9%
19942.22.711.4%
19952.63.111.9%
19962.42.912.4%
19973.02.812.2%
19982.83.312.7%
19993.63.612.7%
20006.24.310.8%
20014.13.29.9%
20026.94.17.1%
20034.13.66.0%
20044.23.14.9%
20053.53.04.4%
20063.12.63.9%
20074.62.23.4%
20083.53.02.9%
20093.93.42.4%
20103.43.02.0%
20111.42.93.5%
20121.62.84.7%
20131.72.85.8%
20141.02.97.7%
20151.01.98.6%
20161.32.39.6%
20172.12.810.3%
20182.43.311.2%
20192.63.011.6%
20203.12.511.0%
20213.04.612.6%
20222.7UNKUNK
20234.6UNKUNK

[6] [7]

Other types of pay

See also

Related Research Articles

Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployed people. In the United States, benefits are funded by a compulsory governmental insurance system, not taxes on individual citizens. Depending on the jurisdiction and the status of the person, those sums may be small, covering only basic needs, or may compensate the lost time proportionally to the previous earned salary.

<span class="mw-page-title-main">Airman</span> Member of the air component of an armed service

An airman is a member of an air force or air arm of a nation's armed forces. In certain air forces, it can also refer to a specific enlisted rank. An airman can also be referred as a soldier in other definitions.

<span class="mw-page-title-main">Cost of living</span> Cost to maintain a standard of living

Cost of living is the cost of maintaining a certain standard of living. Changes in the cost of living over time can be operationalized in a cost-of-living index. Cost of living calculations are also used to compare the cost of maintaining a certain standard of living in different geographic areas. Differences in cost of living between locations can be measured in terms of purchasing power parity rates. An sharp rise in the cost of living can trigger a cost of living crisis where purchasing power is lost and the previous lifestyle is no longer affordable.

A disability pension is a form of pension given to those people who are permanently or temporarily unable to work due to a disability.

<span class="mw-page-title-main">Mess</span> Place where military personnel eat and socialize

The mess is a designated area where military personnel socialize, eat and live. The term is also used to indicate the groups of military personnel who belong to separate messes, such as the officers' mess, the chief petty officer mess, and the enlisted mess. In some civilian societies this military usage has been extended to the eating arrangements of other disciplined services such as fire fighting and police forces.

<span class="mw-page-title-main">Osan Air Base</span> United States Air Force - Korea Air Force base in Pyeongtaek, South Korea

Osan Air Base is a United States Air Force (USAF) and Republic of Korea Air Force (ROKAF) base located near Songtan Station in the city of Pyeongtaek, South Korea, 64 km (40 mi) south of Seoul. Despite its name, Osan AB is not within Osan City, which is 7.5 km (4.7 mi) to the north. The base is the home of the headquarters for Seventh Air Force, Pacific Air Forces' 51st Fighter Wing, and a number of tenant units. The base is also the headquarters of the Republic of Korea Air Force (ROKAF) Operations Command. Osan Air Base is also the departure and arrival point for U.S. government-contracted "Patriot Express" flights bringing service members and their family members to South Korea from Seattle-Tacoma International Airport in the U.S. state of Washington, Misawa Air Base and Yokota Air Base in Japan.

Per diem or daily allowance is a specific amount of money that an organization gives an individual, typically an employee, per day to cover living expenses when travelling on the employer's business.

A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction. The VA does not originate loans, but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program.

<span class="mw-page-title-main">Veterans Benefits Administration</span> Component of U.S. Department Veterans Affairs

The Veterans Benefits Administration (VBA) is an agency of the U.S. Department of Veterans Affairs. It is responsible for administering the department's programs that provide financial and other forms of assistance to veterans, their dependents, and survivors. Major benefits include Veterans' compensation, Veterans' pension, survivors' benefits, rehabilitation and employment assistance, education assistance, home loan guaranties, and life insurance coverage.

Basic allowance for housing (BAH) is a United States military entitlement given to many military members. It was previously called Basic allowance for quarters (BAQ) and is administered by the Defense Travel Management Office (DTMO).

Pay grades are used by the eight uniformed services of the United States to determine wages and benefits based on the corresponding military rank of a member of the services. While different ranks may be used among the eight uniformed services, pay grades are uniform and equivalent between the services and can be used to quickly determine seniority among a group of members from different services. They are also essential when determining a member's entitlements such as basic pay and allowances.

<span class="mw-page-title-main">Leave and Earnings Statement</span>

A Leave and Earnings Statement, generally referred to as an LES, is a document given on a monthly basis to members of the United States military which documents their pay and leave status on a monthly basis.

<span class="mw-page-title-main">Post-9/11 Veterans Educational Assistance Act of 2008</span>

The Post-9/11 Veterans Educational Assistance Act of 2008 is Title V of the Supplemental Appropriations Act of 2008, Pub. L. 110–252 (text)(PDF), H.R. 2642, an Act of Congress which became law on June 30, 2008. The act amended Part III of Title 38, United States Code to include a new Chapter 33, which expands the educational benefits for military veterans who have served since September 11, 2001. At various times the new education benefits have been referred to as the Post-9/11 GI Bill, the 21st Century G.I. Bill of Rights, or the Webb G.I. Bill, with many current references calling it simply the new G.I. Bill. President George W. Bush signed H.R. 2642 into law on June 30, 2008.

An overseas housing allowance (OHA) is a United States military entitlement given to military servicemen and women living overseas. It is administered by Defense Travel Management Office (DTMO) and is the overseas equivalent of the Basic Allowance for Housing. OHA is intended to private lease local housing instead of living in government or on-base housing. Over $1.8 billion is paid in OHA benefiting approximately 61,000 members annually.

Cost of Living Allowance (COLA) is an entitlement given to military servicemen and women United States military living in high-cost areas or stationed overseas. It is intended to compensate service members for the high cost of living at certain duty stations. COLA is also given to other US government employees living abroad, dependent upon agency.

The basic annual salary of a Member Of Parliament (MP) in the House of Commons is £86,584, as of April 2023. In addition, MPs are able to claim allowances to cover the costs of running an office and employing staff, and maintaining a constituency residence or a residence in London. Additional salary is paid for appointments or additional duties, such as ministerial appointments, being a whip, chairing a select committee or chairing a Public Bill committee.

In July 2008 the Post-9/11 GI Bill was signed into law, creating a new robust education benefits program rivaling the WWII Era GI Bill of Rights. The new Post 9/11 GI Bill, which went into effect on August 1, 2009, provides education benefits for service members who served on active duty for 90 or more days since September 10, 2001. These benefits are tiered based on the number of days served on active duty, creating a benefit package that gives current and previously activated National Guard and Reserve members the same benefits as active duty servicemembers.

The Office for administration and payment of individual entitlements, also known as the Paymaster's Office or PMO is a central office of the European Commission.

In Sri Lanka a Member of Parliament (MP), is the title given to any one of the 225 individuals elected or appointed to serve in the Parliament of Sri Lanka.

South Korea introduced its Basic Old-Age Pension in 2008 as part of its pension system. According to the Ministry of Health, Welfare and Family Affairs, the Basic Old-Age Pension is "designed to enhance welfare of the elderly by providing a monthly pension payment to the elderly in need." The pension was intended to benefit workers contributing to the National Pension Scheme.

References

  1. [Jones v. The United States (1925), 60 Ct. Cl. 552; 1925 U.S. Ct. Cl. Lexis 510; 1 U.S. Tax Cas. (CCH) P129; 5 A.F.T.R. (P-H) 5297]
  2. "37 U.S. Code § 206 - Reserves; members of National Guard: inactive-duty training". Cornell University Law School. Retrieved 24 December 2022.
  3. "Basic Allowance for Housing (BAH)". myarmybenefits.us.army.mil. US Army. Retrieved 2 October 2023.PD-icon.svg This article incorporates text from this source, which is in the public domain .
  4. "Historic Military Pay Raises". navycs.com. Retrieved 10 November 2021.
  5. "Misleading on Military Pay". Factcheck.org. 25 March 2010. Retrieved 26 November 2013.
  6. "Annual Pay Raise".
  7. "Compensation costs up 4.0 percent from December 2020 to December 2021 : The Economics Daily: U.S. Bureau of Labor Statistics".
  8. "Hostile Fire/Imminent Danger Pay". Defence Financing and Accounting Service. Archived from the original on 21 November 2010. Retrieved 26 November 2013.

Sources