1. Military Pay & Allowances
How much will you make?

2. Types of Pay & Allowances
Basic (Base) Pay = Salary (monthly); depends upon Pay Grade (Rank) & Years of Service.
Basic Allowance for Subsistence (BAS) = Additional pay for food/rations, etc.
Basic Allowance for Housing (BAH); formerly BAQuarters
Only those who live Off-Post (not in government housing or BOQ).
Based upon rates with and with-out dependents.
Includes deviations based upon cost of living (Variable Housing Allowance).
Non-Taxable.
Special Duty/Skills & Incentive Pay:
Flight Pay (on “Flight Status”) = $125 - $840 per month.
Jump Pay (on “Jump Status”) = $150 per month
Hostile Fire Pay/Imminent Danger Pay (Combat Pay) = $225 per month.
Demolition Pay & Dive Pay (must be in duty position).
Cost of Living Adjustment (COLA) = Pay adjustment for living overseas in a high-cost area (includes Hawaii).

3. BASIC ENTRY: Officer (2LT/O1 vs. PVT/E2)
Years of service
BASIC ENTRY: Officer (2LT/O1 vs. PVT/E2)
2LT (less than 2 years) = $3108 per month = $37,296 / year
Pay Grade
PV2 (less than 2 years) = $1836 per month = $22,032 / year

4. AFTER 3 YEARS: Officer (1LT/O2 vs. SPC/E4)
1LT/O2 (Over 3 years) = $4697 per month = $56,364 / year
SPC/E4 (Over 3 years) = $2370 per month = $28,440 / year

5. Basic Allowance for Housing (BAH) Pay
In most cases, when you are a NCO or Officer, you will have the option of living on-Post or living off-Post.
If you live ON-Post, you basically get FREE housing (explanation).
If you decide to live OFF-Post, you will receive your BAH to help you pay the costs of living off-Post. You can decide to either RENT a home or actually BUY a home.

6. Basic Allowance for Subsistence (BAS) Pay
FOOD:
Basic Allowance for Subsistence (BAS) Pay
CLOTHING:
Enlisted ONLY allowance for purchasing military clothing items

9. DRILL PAY: National Guard & Reserves
SMP in ROTC =
E-5 pay !
($311.04)
Typically, one drill weekend includes
four (4) drill periods
E-2: $ / weekend drill (4xMUTA)

10. Types of Deductions (Pay)
Federal Income Taxes (based upon W-2 Form).
FICA - Social Security Taxes.
FICA – Medicare.
OPTIONAL Deductions:
Serviceman Group Life Insurance (SGLI) premium ($17.25/mo for $250,000 worth).
Family SGLI premium ($2.50/month for $50,000).
Any previous overpayment or debt owed to the Army/Government.

11. Types of Allotments (Pay)
U.S. Savings Bonds ($25 = $50).
Investments (Mutual Funds).
Life Insurance (additional Commercial life insurance).
Army Emergency Relief (AER); helps Soldiers in your unit.
Combined Federal Campaign (CFC); charitable contributions.
Alimony/Child Support.

12. Additional “INCOME”
NO Medical or Dental expenses while on Active Duty (you).
- Pay minimal amount for spouse & children coverage.
MOVING Expenses (FREE military moves – don’t have to pay movers):
- Per Diem (daily rate for meals & incidentals).
- Temporary Lodging Expenses (off-set having to use a hotel/motel).
- Mileage Reimbursement (per mile).
- Dislocation Allowance (money to defer costs of moving).
- Do-It-Yourself (DITY) move (make $$ by saving the government $$).
TAX Savings (not included in taxable income):
- BAH & BAS is NON-taxable!
- Other special income is typically NON-taxable
- Only Base Pay is taxable.
“Business Trips” (TDY) – is paid for (lodging, meals, incidentals, & transportation)
Tuition Assistance (TA) for Education.

13. Additional Benefits
30 days of LEAVE (vacation) per year 2.5 days/month).
- can accumulate up to 60 days.
Federal Holidays OFF (often a 4-day weekend).
Liberal PASS policy (time-off) for good conduct or special considerations.
RECREATION: Gyms, pools, recreation facilities, ball-fields, bowling alley’s, auto-craft shops, wood-working shops, arts & crafts shops, golf courses, shooting ranges, horse stables, fishing ponds/lakes, movie theaters….
SCHOOLS: Elementary & Middle Schools for children.
CHURCHES on-post.
PX & COMMISSARY.

14. PAID 2 x per MONTH ! LEAVE & EARNINGS STATEMENT (LES)
+1.5 Days x per Month
PAID 2 x per MONTH !

15. Military RETIREMENT
The military retirement system is arguably the best retirement deal around.
Unlike most retirement plans, the Armed Forces offer a pension, with benefits, that starts the day you retire, no matter how old you are.
That means you could start collecting a regular retirement pension as early as 37 years old (enter the Service at age 17).
What's more, that pension check will grow with a cost of living adjustment each year.
DIFFERENT PLANS (based upon when a person enters the Service):
Prior to September 1980 = Final Pay retirement system.
September 8, August 1986 = the High 36 system.
After August 1986 = the REDUX system, which means you have the option to choose either the High 36 retirement system, or the Career Status Bonus/REDUX (CSB) retirement system. If you decline to make a choice you will automatically receive the High 36 retirement plan.
After December 31, 2017 you will be enrolled in the new Blended Retirement System.

16. Military RETIREMENT
The Basis for Calculating Your Retirement Pay:
Although you have no choice in the basis for calculating your retirement pay, it is a very important detail. For instance the Final Pay retirement system bases the amount of pension on a member's last month of pay.
For Example: if you retired at twenty years of service on the final Pay retirement system, you received 50% of your final months pay as your pension, and that percentage increases by 2.5% for each additional year of service.
Under the High 36 system a member's pension is based on the average of the highest 36 month's base pay. So if you retire under the High 36 system you would get 50% of your highest 3 years (36 months) average base pay plus 2.5% added on for every year of service over 20 years.
Under the CSB/REDUX system a member's pension is based on the average of the highest 36 month's base pay like above, but the main difference is that you will get 40% of your highest 3 years (36 months) average base pay plus 3.5% added on for each year of service between years, and 2.5% added on for each year of service between Also you get a $30,000 bonus when you reach your 15th year of active service.
Under the future Blended Retirement System, your pension is similar to the CSB/REDUX system, you will get 40% of your base pay after 20 years. You also get a lump-sum bonus at 12 years of Service of 2.5% of your annual base pay. The Blended Retirement System also includes matching funds from the government into your TSP account.

17. Retirement Pay Examples (20 years)
Retired at 20 years of Active Service EXAMPLES:
LTC (typical Officer 20 years):
Base Pay = $ /month (from the 2017 Pay Chart)
x 12 months = $105, per YEAR
50% (Retirement) of $105,772.2 = $52, per YEAR
SFC (typical Enlisted 20 years):
Base Pay (2017) = $ /month (from the 2017 Pay Chart)
x 12 months = $54, per YEAR
50% (Retirement) of $54, = $27, per YEAR

18. Retirement Pay Examples (24 years – “Final Pay”)
Retired at 24 years of Active Service EXAMPLES:
LTC (typical Officer 20 years):
Base Pay = $ /month (from the 2017 Pay Chart)
x 12 months = $108, per YEAR
+ 4x2.5% (Top3)=60% (Retirement) of $108,752.4 = $63, per YEAR
SFC (typical Enlisted 20 years):
Base Pay (2017) = $ /month (from the 2017 Pay Chart)
x 12 months = $57, per YEAR
+ 4x2.5% (Top3)=60% (Retirement) of $57, = $34, per YEAR

19. Military RETIREMENT Additional Benefits
Upon your retirement, you will continue to receive these benefits:
Medical Coverage (TriCare) at a reduced premium. $47/month.
Dental Coverage (Dental Dental) at a reduced rate.
Commissary & PX privileges are maintained.
Veterans benefits from the VA (situation dependent).
Post-911 G.I. Bill (if any remaining).
However, you will NO longer continue to receive these benefits:
Housing Allowance (BAH).
Food Allowance (BAS).
Clothing Allowances.
Tax Defered Pays (State-by-State on State Income Taxes).
30-days of paid vacation.
Moving Expenses (no more paid moves).

20. Direct Deposit
You will be required to establish a Direct Deposit account (checking or savings) for ALL your Military pay to be deposited into.
You may elect to keep that account throughout your career (I did) or move it as you move from location to location (PCS).
Recommend that you also open a “local” account (checking and/or savings/ATM) when you PCS to a new duty station (if you keep your DD somewhere else).
Recommend elect to receive a Mid-Month Pay & and End-of-Month Pay option.
Even TDY/travel, and other payments will be DD.
My Example: $125 into Savings every pay / rest into Checking.

21. Leadership Responsibilities
Review the LES of your Soldiers:
Check & verify the number of LEAVE days (“Use/Lose” or “In-the-Hole”).
Check & verify the Mid-Month & End-of-Month Pay (“No Pay Due”).
Unit Commander’s Finance Report (UCFR).
Save your LES’s

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need to find a company or school that sets up apprenticeships
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formal bar tending & serving courses from a local education center.