The Wide Range of Military Pay
June 06, 2024
Joining the military is a big step in a person’s life. What is going to happen? Where would they be posted? What would they be trained to perform? Where and when would they be deployed?
Part of that learning curve while starting a new life in a new place is understanding how military pay works. While many are familiar with it, there are changes from time to time that may upset the familiar routine and pay level.
Recently, in 2021, reserve and active-duty personnel received a 3 percent pay raise. There are more benefits offered to military personnel, such as reduced-cost or free housing, paid vacations, retired-pay plans, free tax consultations, no-cost financial advice and planning, a chance to develop leadership skills, and tuition assistance.
Military members are not just paid a base salary, they may also have the benefit of food and housing pay. While a member may not live on a base or in a nearby town, they receive a basic housing allowance (BHA) to have suitable accommodations.
Along with a housing allowance, there is also a monthly stipend that assists service members in paying for meals. This is not applicable if the member lives on a military installation. However, the meals on base are free.
Should a service member be shipped overseas, they receive an overseas cost of living allowance (OCOLA) which is nontaxable. This allowance offsets higher prices for goods and services not related to housing. The pay may vary according to the location of the base, years of service, pay grade, and rate of exchange.
Other Military Allowances and Benefits
There are other incentives and special pay for difficult or hazardous duties. Referred to as special and incentive pays (S&I pays) the most common ones of the 60 available are:
- Assignment incentive pay – offered for unusual assignment circumstances, such as a tour of duty being extended.
- Hardship duty pay – offered at locations where the standard of living is significantly lower than that in the U.S.
- Hazardous duty pay – offered to service members performing hazardous duties like aircrew members who perform in-flight duties and equipment inspections to ensure missions are completed successfully.
Military members also receive full dental and health insurance under the auspices of TRICARE Prime. Members do not pay out of pocket are any kind of care in the network. Immediate family members can also access various plans at lower rates.
Each service member can take 30 days of paid leave yearly as well as federal holidays. If over 60 days have been accrued, the excess must be used or they are lost at the end of the year. Retired pay is also available for members who have served a full 20-year career.
Family supplemental subsistence allowance (FSSA) is available to eligible active service member’s households. The max payment is $1,100 a month. It is best to check that figure as it may vary. The subsistence payment is only available if the household income is below 130 percent of federal poverty guidelines. FSSA is only accessible for members with at least one dependent who are serving overseas.
There is also access to reasonably priced life insurance, along with free financial assistance, counseling, tax services, and access to MilTax to prep and file taxes yearly.
Military members also have access to tax-free shopping at exchanges, commissaries, movie discounts, discounts at amusement parks, restaurants, and more. While traveling in the continental U.S. military members do not pay for luggage.
Many other benefits accrue to someone who joins the military and that also includes professional and personal development. Skills and abilities they acquire include:
- Discipline – finish any task to completion
- Teamwork – working cooperatively with everyone
- Flexibility – learning to adapt to new situations with little preparation
- Leadership – lead with confidence
- Technical skills – are taught to become proficient in various tactical and technical skills
- Communication – learning to communicate efficiently and effectively
- Problem-solving abilities – learning to think on their feet and identify other solutions when necessary
If a veteran has difficulties seeking benefits, Legal Help For Veterans, PLLC is a nationwide VA Disability law firm assisting veterans and their family members in all federal VA benefit matters.
Legal Help for Veterans, PLLC is a national practice representing veterans nationwide. They have helped veterans collect over $10,000,000 in future and retroactive benefits.