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Military Pay Explained

SW Guides: Finance Guides

Military Pay Explained

The military offers over 70 different types of pay.  trying to understand all of these can be difficult.  This section was designed to acquaint you with some of the more common pay types you will encounter.

 

Basic Pays and Allowances for housing and cost of living

Base Pay
Your base pay is just that.  The basic amount you will receive each month dependent on your rank, and years of service.  This is a set rate which you will receive each pay period, which changes as your years in service increase, your rank changes and of course fiscal year pay increases. You can view the fiscal year 2004 pay charts here.


BAH (Basic Allowance For Housing)
If you are not living in government housing, you will qualify to receive monies to help to pay your rent and utilities.  The BAH rates vary by zip code as well if you have dependents or not.  The Defense Finance website has a information on the BAH rates.  You can visit there site here-  Basic Allowance for Housing (BAH) Rates   One thing to keep in mind.  The government bases their BAH rates by asking military members to fill out a survey based on what they pay for average rent.  it is VERY important that you take part in this survey as they take the average submitted amount, and calculate the rate with the provided information.  You may find that in some areas, the average rent is higher than the amount of BAH you receive.  In order to help the government provide a rate that will compensate the cost of living in your area, please submit your information!

OHA (Overseas Housing Allowance)
OHA is the housing allowance you receive if you are not living in government quarters while residing overseas.  It includes  rent, utilities  and recurring maintenance costs, as well as  MIHA- or your Move-in Housing Allowance. The Per Diem Committee has the OHA rates online here- Overseas Housing Allowance Query.


BAS (Basic Allowance For Subsistence)
Active duty service members have two options available to them based on their rank.  They are either authorized to eat in the mess halls, or they are given money to eat on their own.  BAS is given to those service members who are NOT authorized to eat in the mess halls.  This money is for the soldier, not the family, so it is important to know that it can be taken away, so keep this in mind when you are budgeting your monthly expenses.  Why would it be removed?  If the the service member takes part in a long term training exercise, where they army takes care of feeding them, it is likely they will  take the BAS away for that month, seeing as how it would be like paying them twice by providing government meals and BAS.  For more information on BAS pay, visit the following site.  BAS pay information page.

Clothing Allowance
Once a year, enlisted service members receive a clothing allowance to replace military uniform items such as BDUs, boots, and PT uniforms.  Those service members who are required to dress in civilian clothing are also given this allowance to offset their clothing costs.  This allowance is not given at the first of the year.  It will be given the same month every year based on when the soldier was first issued their military uniforms.  

COLA (CONUS Cost of Living Allowance)
There are some areas in the US that have a very high cost of living.  The government recognized this, and provides extra pay to help compensate for the higher cost of living expenses for those specific areas.  Not all installations offer this pay.  The  Per Diem Committee website offers a list of those areas which qualify for COLA.  You may find that this rate changes from paycheck to paycheck as the economy in that area fluctuates. 

OCOLA (Overseas Cost of Living Allowance)
OCOLA is the same as COLA, but only applies to overseas installations.  The Per Diem Committies OCOLA  page can help you determine your area, and your rates.  This amount changes dependent on the economy you are living in, and the dollar conversion rate based on the country you are in.  The weaker the dollar is to your host nations currency, the higher your OCOLA will be.

Allowances related to PCS, and special travel

DLA (Dislocation Allowance)
You will qualify for DLA whenever you have a PCS.  It is offered to help offset your moving expenses.  We have been informed that this pay is not automatic- when PCSing, be sure to ask for it!  This is pay that you do not have to pay back, and normally is equal to approximately two months BAH.   You qualify for DLA on your first move, IF you have dependents traveling with you.  Your last move with the military will not qualify for DLA. The Per Diem Committee's DLA FAQ offers more information on DLA. This is a great place to review during PCS time.

TLA (Temporary Lodging Allowance)
When moving overseas, you will encounter extra expenses for lodging and meals.  TLA is offered as a partial reimbursement for those costs.  For more information, visit  TLA FAQ at the Per Diem website.


TLE (Temporary Lodging Expense)
Like TLA, this allowance is offered to partially reimburse your lodging and meal costs when moving between stateside installations.  Remember, there is a 10 day limitationTLE is designed to partially reimburse some of the costs for lodging and meals incurred by service members and/or their dependents during a CONUS move not to exceed 10 days. The Per Diem Committee offers a TLE FAQ that is informative.

Per Diem
When an active duty member is assigned TDY, (Temporary Duty), or other official government business, they are offered an allowance to cover the cost of food and lodging while they are away from their assigned duty station. The following pages from the Per Diem website will show you what the Per Diem rates are. 

CONUS Per Diem Rates  

OCONUS and Overseas Per Diem Rates 

 

Allowances related to separation, and special duty pays


Family Separation Allowance
This allowance is paid anytime members are  separated from their dependents for more than 30 days.  the amount is usually 100.00 a month, but has been seen around 250.00 in some situations.  You will find that when service members are away for a long training exercise, 30 days or more, they are allowed to keep their BAS instead of receiving FSA for that pay period.  
To receive the FSA you must meet the following criteria:

Service members that volunteer to serve an unaccompanied tour at a duty station where the government authorizes and pays to move dependents to, are not entitled to FSA.  Basically, if the service member is offered an accompanied tour (where the military will pay to move the soldier AND dependents to) but the service member opts to go alone, you will not get separation allowance!


Hardship Duty Pay
Hardship duty pay is extra compensation paid to service members located where living conditions are substantially below those conditions in the continental U.S. 

Hazardous Duty Pay Incentive
Service members that are required to handle parachute jumping, demolition of explosives, handle toxic fuels, or engage in flight deck duty or experimental stress duty can earn $150 per month. 


Hostile Fire/Imminent Danger Pay
Imminent Danger Pay is offered  to service members who are in or near hostile fire areas.   Active duty and Reserve/Guard members can qualify for $225 for any month in which they are exposed to hostile fire or imminent danger. 
Visit the DTIC website to view the areas that are authorized this pay.  (you must have adobe acrobat reader for this file) DTIC Imminent Danger Pay

Special Duty Pay
As an enlisted member, you may qualify for $600 a month in extra pay if you are performing duties classified as extremely difficult. (examples are Recruiting duty, or being a Drill Instructor)

Miscellaneous Pays


FSSA (Family Subsistence Supplemental Allowance)
The FSSA program was initiated in order to help soldiers and their families get off food stamps.  This allowance is an increase in the soldiers BAS rate.  Eligibility is based on the income for the entire household, as well as how many people are living in the household. To find out of you qualify, visit the FSSA website. Have your sponsors personal information ready in order to log in.

Pet Quarantine Fee Reimbursement
This is a reimbursement for actual mandatory quarantine fees for household pets not to exceed $275.00 per PCS move.  Contact your finance office for more information.