TrendingHow Much Does The Military Pay You

How Much Does The Military Pay You

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Are Military Dependents Eligible For Education Benefits

Military Pay: How much I MAKE, SPEND, and SAVE in the military

Individuals enrolled under the Post 9/11 GI Bill can transfer their benefits to their dependents. If youve served at least 90 days of active duty since September 10, 2001, then you or your dependent can already receive tuition and fees, in addition to a stipend for housing and books.

Family members who have survived a military members passing after September 10, 2001, may also be eligible for the Fry Scholarship, which offers the same benefits.

How Taxes Impact Your Military Compensation

Taxes can have a significant impact on your total militay compensation. That is why tax planning is essential while you are serving in the military.

In my PSMC above, DFAS has estimated that based on my current BAH and BAS I am saving $3,275.21 a year by not paying federal income tax on those two allowances. Given that Im also a resident of a no-income-tax state, that figure understates my total tax advantage as well. Were I to add state income tax for the state I would likely be living in into this calculation, I would be paying another approximately $2,500 a year in state income taxes just on basic pay alone.

Even though the PSMC doesnt specifically tell you to calculate the state income tax until later on, Im including it here in this section. State income taxes are especially relevant if youre currently paying no state income tax, but will be moving post-military to a new state that has income tax.

Another thing to consider here is combat zone tax exclusion . The PSMC doesnt list this as part of the analysis, and it could easily be argued that this is a direct benefit to help offset some of the challenges of deployments. For many service members however, a deployment might mean going down one tax bracket from 15% to 10%. More senior servicemembers or dual-military could really reap benefits here if they own more significant taxable investments and drop from the 25% tax bracket to the 15% and its subsequent 0% tax rate on long-term capital gains and dividends.

Understanding Military Payday Everyday

Understanding your military pay is a lot like understanding your first algebra class. At first glance it looks complicated, but upon closer examination, you’ll find that it’s all based on simple, logical rules.

For enlisted military personnel, there are two basic types of enlisted military pay. Basic Pay, sometimes called Base Pay, is the amount you earn per month for your military service. Base Pay is a flat rate based on your time in the military and your current rank.

The other type of money considered to be part of your career pay is military allowances. Military allowances can include money for housing, for “subsistence” which basically covers food, and for cost of living expenses during overseas assignments.

What is the major difference between your military basic pay and your military allowances? Military allowances are tax-free. You read that correctly. Military allowances for housing, food and cost of living are not taxable by the federal government.

One of your biggest expenses – housing – can be paid for by a military allowance, above and beyond what the IRS considers to be your total, taxable wages for the year. This benefit is your Basic Allowance for Housing .

For example, if you pay $1,000 a month rent in a high-cost area like Chicago, San Diego or elsewhere, and your military BAH is $1,000/month, your military BAH supports your housing cost – and you get that 12K per year allowance with no tax consequences whatsoever.

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Special And Incentive Pays

Special and Incentive pays are ways to earn over and above your basic rate or allowances, regardless of your time in the service or pay grade. They help the Department of Defense ensure that the right people are where they need to be to keep the country safe.

Some types of S& I pays include:

  • Hardship Duty Pay for service members assigned to places where the standard of living is significantly below that of the continental United States
  • Hostile Fire Pay/Imminent Danger Pay for those assigned to specific regions where they may be subject to hostile actions like enemy fire or mines
  • Assignment Incentive Pay for service members on extended tours or certain unusual assignments
  • Hazardous Duty Incentive Pay for those on specific types of flying duty such as parachute jumping, flight deck duty or experimental stress duty also known as flight pay for aircrew members

Your take-home pay will be impacted by automatic deductions for things like taxes and Thrift Savings Plan contributions. If youve got any questions about payments or deductions, a Military OneSource financial counselor is happy to walk you through your Leave and Earnings Statement at no cost.

Additional Resources For Military Education Support

How much does a salary does a US Army infantry sergeant (E

If youre considering attending school during or after your service, plenty of questions will come up along the way, even beyond how the military pays for college. Your main source of information for all things related to military education is the US Department of Veterans Affairs. These links to the military branches and other sources regarding the military may also be helpful:

It can be challenging to reintegrate into civilian life after service, and the military pays for college as a way to help with the adjustment. The decision to enlist comes with loads of responsibility and life changes, but if you are absolutely sure the military is for you, rest assured that your academic dreams are possible too!

If you want to get a college degree but remain unsure about joining the military, consider going for other affordable options in higher education: you can look into community colleges, public colleges, trade schools, or cheap universities around the country.

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For Us Army Navy Air Force Marines And Coast Guard Personnel

Wondering how much does a US soldier earns?

Are you wondering how much does a US soldier earn? How much sergeants, warrant officers, officers and generals earn? Or how much will you get paid if you will join the military? Would you like to make a career in the US military? Here are 2018 basic monthly payments for Enlisted , Warrant Officers , and Officers of all branches of the US military. These basic monthly payments do not include various additional modifiers, bonuses, allowances and benefits.

$15 957

The pay is displayed here as monthly payments, without any benefits or bonuses added. Each US soldier, warrant officer, and officer receives an automatic pay raise every one or two years. The US military maintains various pay modifiers that are not included in these pay tables. These include hazardous duty pay, imminent danger pay , submarine duty pay as well as other. Also in addition to a basic monthly pay, all military servicemen may be eligible for multiple types of allowances, bonuses and benefits, such as clothing allowance, housing allowance and cost-of-living allowances, retirement benefits and more.

Navy College Tuition Assistance Program

Am I eligible? If youre an active duty sailor or officer , you bet! You become eligible after two years of military service.

What does it cover? The Navy TA program will fund one certificate, certification preparation, or diploma in schools that have signed a Department of Defense Memorandum of Understanding . The institution you are applying for must also be listed on the Department of Veteran Affairs website.

Heres a quick breakdown of how much the program can cover:

  • $250 per semester hour

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Job Growth Trend Or Outlook

The demand for military personnel rarely goes down. The military has an ongoing goal of maintaining a sufficient level of forces to fight, deter and overcome threats and conflicts at the same time. When the economy is good, the Army must compete with private companies for qualified candidates. In times of war, all of the military branches need to recruit more soldiers.

In short, the Army will always have jobs available and a need for more recruits.

Joining the Army, earning a good income, getting specialized training and receiving free health and medical coverage are enticing benefits for a lifetime path to success and financial security. With skyrocketing costs of going to college, pursuing a career in the Army is an attractive way to go.

References

What Kinds Of Retirement Benefits Do Us Army Soldiers Receive

How Much does the Army Pay??: Active Duty vs Reserves/ MILITARY PAY

After serving in the U.S. Army, soldiers receive retirement pay. The retirement allowance that a soldier receives is determined by the number of years served and the rank upon retirement. The U.S. Army structures its retirement pay much like a 401, which allows retired veterans to purchase a home, make investments and deposit savings. The Thrift Savings Plan is another option backed by the government and offered to retirees as another means of contributing to their retirement savings.

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Career Outlook In The Military

As military personnel complete their term of service or retire, they are replaced by others who receive promotions to fill those openings. The U.S. Bureau of Labor Statistics projects that, through 2020, the number of military personnel will remain constant, but also says that the need to recruit entry-level personnel will continue, to fill jobs left open by these promotions, discharges and retirements. As long as there’s a need for national defense, the military will continue to have openings.

References

Counseling And Assistance Programs

The PSMC helps provide some figures here ranging from $30 an appointment up to more than $5,000 for transition assistance services to help you analyze the costs for free personal financial management counseling, relocation services assistance, transition counseling, spouse employment consultation, and assistance from a wide range of services available from their services community centers.

Again, each individual circumstance will differ here. Based on what my wife and I use, this comes out to about $300 a year.

  • Cost of Off Base Service Cost of on Base Service = Benefit

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Which Military Branch Pays The Most

Basic military pay amounts are set by law and are the same for each branch of the military. Pay amounts are tied to paygrade. While the different services often customize the names of their ranks, all of those ranks are tied to that same paygrade chart.

Service members do, however, receive fluctuating pay based on their location, special skills, family size or risk associated with their job. For example, a deployed Special Forces soldier with a family stationed in a high cost-of-living area will bring home a lot more pay in the form of allowances and special pays than an unmarried soldier of the same rank with a desk job in Oklahoma. Both soldiers, however, will have the same base pay.

Save Pdf Copies Of Your Les

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One tip I recommend for all military servicemembers, enlisted or officer, is to download a PDF copy of your Leave and Earnings Statement every month from MyPay and save it in Google Drive, Dropbox, or some other cloud storage solution.

The military is notorious for withholding pay or deducting pay due to clerical/administrative errors. I keep a copy of all my LESs in PDF form so I have a record of what they have and have not paid me.

It has saved me a few times when I have been accused of being overpaid or underpaid.

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Va Disability Compensation Benefits

Veterans who have a service-related injury or illness may be entitled to VA disability compensation. Its a tax-free monthly benefit.

Visit VA.gov to learn:

  • Which conditions qualify you for benefits

  • How the claims process works

Survivors of veterans may receive compensation benefits in certain situations.

How Much Does National Defence And Canadian Armed Forces In Canada Pay

The average National Defence and Canadian Armed Forces salary ranges from approximately $38,546 per year for Marine Technician to $86,190 per year for Sergeant Major. The average National Defence and Canadian Armed Forces daily wage ranges from approximately $79.05 per day for Security Officer to $215 per day for Sergeant Major.

Please note that all salary figures are approximations based upon third party submissions to Indeed. These figures are given to the Indeed users for the purpose of generalized comparison only. Minimum wage may differ by jurisdiction and you should consult the employer for actual salary figures.

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Basic Allowance For Housing Rates

About Ryan Guina

Ryan Guina is The Military Wallet’s founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Illinois Air National Guard.

Ryan started The Military Wallet in 2007 after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then. He also writes about personal finance and investing at Cash Money Life.

Ryan uses Personal Capital to track and manage his finances. Personal Capital is a free software program that allows him to track his net worth, balance his investment portfolio, track his income and expenses, and much more. You can open a free Personal Capital account here.

Featured In: Ryan’s writing has been featured in the following publications: Forbes, Military.com, US News & World Report, Yahoo Finance, Reserve & National Guard Magazine , Military Influencer Magazine, Cash Money Life, The Military Guide, USAA, Go Banking Rates, and many other publications.

Basic Allowance For Subsistence

Military Pay & Benefits 2022 | How much do you get paid in the military?

BAS is a nontaxable allowance intended to offset the cost of the service members meals. The BAS rate is adjusted annually based on the cost of food. All officers receive the same allowance, $266.18 per month in 2021. Most enlisted personnel receive the regular BAS of $386.50. Enlisted personnel in basic training are required to eat in government dining facilities and thus do not receive BAS.

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The Gi Bill: Helping Military Veterans Pay For College

Originally known as the Servicemens Readjustment Act of 1944, the GI Bill was started after World War II to support military veterans in their return to civilian life. Years later, plenty of military service members still use the program to fund their college education.

Heres what you need to qualify for the GI Bill:

  • Have served at least 90 days of active duty, or at least 30 days if youve been discharged with a service-related disability
  • In most cases, you will need to sign up for eight years of military service. The most common arrangement involves four years of active duty, and four years of reserve duty

Military vets can choose between the Post 9/11 GI Bill and the Montgomery GI Bill. Both paths offer a number of benefits, so its up to you to make your decision based on your educational goals and service history.

United States Military Pay

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

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 officers and warrant officers will often have higher pay-grades than their enlisted counterparts. Early pay-grade promotions are quite frequent, but promotions past E-4 will be fewer.

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Commissary And The Exchange

This category is very dependent on how much each family uses the Commissary and Exchange. The 2016 PSMC lists out that the average Commissary benefit is about $4,430 a year for a family of four with most people saving about 30% of their grocery purchases. More recent statistics as reported by Stars and Stripes show that figure to be about 24% on average now though and can vary widely between assignment locations.

In our particular case, we live off base pretty far from the Commissary and Exchange and can get very good deals through Costco, our local coop, community supported agriculture, buying meat directly from ranchers, and deal hunting online so I dont calculate anything from this benefit. Take into your purchasing habits to fully analyze this one for you.

  • Formula: = Average Benefit

Note: To get a more accurate estimate, the Stars and Stripes articlebreaks out the average savings by region and can range from around 19% to over 44% for OCONUS.

What The Us Military Pays At Every Rank

US Military Pay Scale for all Branches of the US Military

The United States military had more than 2.4 million people in active duty or reserve service as of 2019, all of whom were getting a fair salary. The Army is by far the biggest of the six branches, followed by the Navy, Air Force, Marine Corps, Coast Guard and the newly established Space Force.

With those massive numbers and the great benefits that can come with serving, its no wonder that the military has been called Americas biggest jobs program. Weve taken a look at how much money each rank in the military pays, from the entry-level cadet to the seasoned five-star general and the numbers might surprise you.

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