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Military Pay 101: Basic Pay, Allowances and S&I Pay

5 minute read Sept. 4, 2024
group of reenlisted soldiers

As an active-duty service member, you receive many benefits and entitlements like free access to Military OneSource services and support. One of the primary benefits of working in the military is a steady paycheck and tax-free allowances. Here’s a summary of the different military pay elements you might see on your monthly LES.

Compensation Conversation

Did you know there’s more to your military compensation package than pay? There are hundreds of benefits you’ve earned through your service. Check out this video where Military OneSource breaks down the full scope of military compensation and helps service members and their families understand and maximize their benefits.

Basic pay chart and raises

Basic pay is a service member’s primary compensation. Two main factors affect where you fall on the basic pay scale: your years of service and your rank, which generally correspond with your military pay grade.

Basic pay rates are calculated monthly, rather than weekly or bimonthly, and are subject to taxes like civilian pay. And — just like salaried civilians in the private sector — you’re not eligible for overtime pay. Your monthly pay is automatically split in half and distributed twice a month.

Basic pay rates are automatically adjusted according to the annual Employment Cost Index, which compares military pay with growth in private sector wages. Additional pay raises above the ECI adjustment may be approved and funded by Congress.

Basic Allowance for Housing and other common military allowances

In addition to your basic pay, you may also receive additional “allowances.” Most allowances are nontaxable.

When you don’t receive government-provided housing, you’ll be given a military housing allowance known as a Basic Allowance for Housing. This allowance is meant to offset the cost of housing. The amount you receive will change from place to place and year to year and is impacted by:

  • The local rental market
  • Your pay grade
  • Yearly inflation
  • Your dependency status or child support status

Use this online BAH calculator to find your specific BAH rate.

Historically, the military provided both housing and food as part of a service member’s compensation. As of 2002, all service members receive a Basic Allowance for Subsistence to pay for their meals per the U.S. Department of Agriculture’s annual food cost index.

For 2024, the monthly BAS rates are:

  • Enlisted service members: $460.25/month
  • Officers: $316.98/month

You may be eligible for other allowances depending on your situation, including:

  • Basic Needs Allowance is a monthly allowance for active-duty service members with dependents whose gross household income falls below 150% of federal poverty guidelines.
  • Clothing Allowance pays for uniform purchase and maintenance.
  • Cost of Living Allowance for CONUS is a taxable allowance created to offset higher prices in the higher-cost CONUS locations.
  • Dislocation Allowance allows for partial reimbursement of expenses due to PCS orders or other required moves.
  • Family Separation Allowance provides for service members with dependents on an unaccompanied tour of duty.
  • Family Supplemental Subsistence Allowance is a Defense Department program that supplements an eligible active service member’s household income if it’s below 130% of federal poverty guidelines (maximum payment is $1,100 per month). FSSA is only available for members with at least one dependent in their households who are serving overseas (not including Puerto Rico, the U.S. Virgin Islands or Guam).
  • Overseas Cost of Living Allowance is a nontaxable allowance designed to offset the higher overseas prices of non-housing goods and services. It is not a fixed amount and may vary based on location, pay grade, years of service and number of dependents. OCOLA can fluctuate based on the exchange rate and should not be considered as part of your monthly budget. Learn more about OCOLA and the 2024 OCOLA adjustment process.

Special and Incentive pays

While basic pay and allowances cover the fundamental components of military pay, special and incentive pays are used to compensate service members for qualifying conditions and to recruit and retain them. Common S&I pays are:

  • Hardship Duty Pay: Recognizes service at locations where living conditions are substantially below CONUS
  • Assignment Incentive Pay: Paid to Service members to encourage them to volunteer for difficult-to-fill or less desirable assignments, locations or units designated by and under conditions of service specified by the military department
  • Hazardous Duty Incentive Pay: Paid to service members who perform duty that is inherently dangerous or risks physical injury
  • Special Duty Assignment Pay: Recognizes service in assigned duties determined to be extremely demanding, requiring a greater than normal degree of responsibility or difficulty, or require special qualifications

Your take-home pay will be impacted by automatic deductions for things like taxes and Thrift Savings Plan contributions. If you’ve got any questions about payments or deductions, a Military OneSource financial counselor is happy to walk you through your LES for free.

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Release 5.24.24