Introduction

Military pay consists of base pay, allowances, and benefits that provide a comprehensive compensation package. Understanding military pay scales helps you plan your financial future and make informed career decisions.

Base Pay Structure

Military base pay is determined by rank and years of service. All branches use the same pay scale, updated annually based on cost-of-living adjustments.

Enlisted Pay Grades (E-1 to E-9)

• E-1 (Private/Seaman Recruit): $1,917.60/month (0-2 years)
• E-2 (Private/Seaman Apprentice): $2,149.20/month (0-2 years)
• E-3 (Private First Class/Seaman): $2,259.90/month (0-2 years)
• E-4 (Specialist/Corporal/Petty Officer 3rd): $2,503.50/month (0-2 years)
• E-5 (Sergeant/Petty Officer 2nd): $2,730.30/month (0-2 years)

Officer Pay Grades (O-1 to O-10)

• O-1 (Second Lieutenant/Ensign): $3,637.20/month (0-2 years)
• O-2 (First Lieutenant/Lieutenant JG): $4,191.00/month (0-2 years)
• O-3 (Captain/Lieutenant): $4,836.60/month (0-2 years)
• O-4 (Major/Lieutenant Commander): $5,516.40/month (0-2 years)
• O-5 (Lieutenant Colonel/Commander): $6,112.50/month (0-2 years)

Allowances and Special Pay

Basic Allowance for Housing (BAH)

BAH varies by location and depends on rank, dependency status, and local housing costs:

• E-1 with Dependents: $1,200-$3,000/month (varies by location)
• O-1 with Dependents: $1,500-$4,000/month (varies by location)
• Without Dependents: Approximately 65% of with-dependents rate

Basic Allowance for Subsistence (BAS)

• Enlisted Personnel: $452.56/month (2025 rate)
• Officers: $311.68/month (2025 rate)

Special Pay Types

• Hazardous Duty Pay: $150-$250/month
• Flight Pay: $150-$840/month
• Diving Pay: $150-$340/month
• Jump Pay: $150/month
• Sea Pay: $50-$750/month
• Submarine Pay: $75-$835/month

Sign-On Bonuses

Many military jobs offer sign-on bonuses ranging from $5,000 to $50,000 or more, depending on:

• Job Demand: High-demand specialties offer larger bonuses
• Service Commitment: Longer commitments typically mean larger bonuses
• Education Level: College graduates may qualify for higher bonuses
• Prior Service: Veterans may have different bonus structures

Benefits Package

Healthcare Benefits

• TRICARE: Comprehensive health coverage for service members and families
• Dental Coverage: TRICARE Dental Program
• Vision Care: TRICARE Vision Program
• Mental Health: Comprehensive mental health services

Education Benefits

• GI Bill: Up to $26,000/year for education
• Tuition Assistance: Up to $4,500/year for college courses
• Student Loan Repayment: Up to $65,000 in loan forgiveness
• ROTC Scholarships: Full tuition and fees coverage

Retirement Benefits

• Blended Retirement System: 401(k)-style plan with matching
• Traditional Retirement: 50% of base pay after 20 years
• Thrift Savings Plan: Government 401(k) with low fees

Total Compensation Examples

E-4 with 2 Years Service (San Diego, CA)

• Base Pay: $2,503.50
• BAH: $2,400.00
• BAS: $452.56
• Total Monthly: $5,356.06
• Annual Equivalent: $64,272.72

O-2 with 2 Years Service (Washington, DC)

• Base Pay: $4,191.00
• BAH: $2,800.00
• BAS: $311.68
• Total Monthly: $7,302.68
• Annual Equivalent: $87,632.16

Pay Progression

Military pay increases through:

• Time in Service: Automatic increases every 2 years
• Promotions: Significant pay increases with rank advancement
• Cost of Living: Annual adjustments based on inflation
• Special Skills: Additional pay for specialized training

Tax Advantages

• BAH and BAS: Not subject to federal income tax
• Combat Pay: Exempt from federal income tax
• State Taxes: Many states don't tax military pay
• Deployment Benefits: Additional tax-free allowances

Conclusion

Military compensation includes competitive base pay, valuable allowances, comprehensive benefits, and significant tax advantages. When considering total compensation, factor in all benefits, not just base pay, to get an accurate picture of your military earnings potential.