Military Pay and Benefits
The most important components of compensation in the military are pay and allowances. There are various types of pay. Basic pay is received by all and is the main component of an individual’s salary. Basic pay increases about 2.5 to 3.5% each year.
There are other compensations for specific qualifications or events. For example, there are special pays for aviators and parachutists; special pays are also paid for dangerous or hardship duties.
Allowances are the second most important element of military pay. Allowances are monies provided for specific needs, such as food or housing. Monetary allowances are provided when the government does not provide for that specific need.
For example, not all military members and their families live in housing provided by the government. Those who live in government housing do not receive full housing allowances. Those who do not live in government housing receive allowances to assist them in obtaining commercial housing.
The most common allowances are the Basic Allowance for Subsistence (BAS) and Basic Allowance for Housing (BAH). A majority of the force receives both of these allowances, and, in many cases, these allowances are a significant portion of the member's total pay.
Most allowances are not taxable, which is an additional benefit to military personnel.
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