Army Pay Allowances How much will you make

Army Pay & Allowances How much will you make?

Types of Pay & Allowances Ø Basic (Base) Pay = Salary (monthly); depends upon Pay Grade (Rank) & Years of Service. Ø Basic Allowance for Subsistence (BAS) = Additional pay for food/rations, etc. Ø Basic Allowance for Housing (BAH); formerly BAQuarters • Only those who live Off-Post (not in government housing or BOQ). • Based upon rates with and with-out dependents. • Includes deviations based upon cost of living (Variable Housing Allowance). • Non-Taxable. Ø Special Duty/Skills & Incentive Pay: • Flight Pay (on “Flight Status”) = $125 - $840 per month. • Jump Pay (on “Jump Status”) = $150 per month • Hostile Fire Pay/Imminent Danger Pay (Combat Pay) = $225 per month. • Demolition Pay & Dive Pay (must be in duty position). Ø Cost of Living Adjustment (COLA) = Pay adjustment for living overseas in a high-cost area (includes Hawaii).

BASIC ENTRY: Officer (2 LT/O 1 vs. PVT/E 2) Years of service 2 LT (less than 2 years) = $3287. 10 per month = $39, 445. 20 / year P a y G r a d e PV 2 (less than 2 years) = $1942. 50 per month = $23, 310. 00 / year

AFTER 3 YEARS: Officer (1 LT/O 2 vs. SPC/E 4) 1 LT/O 2 (Over 3 years) = $4967. 70 per month = $59, 612. 40 / year SPC/E 4 (Over 3 years) = $2507. 10 per month = $30, 085. 20 / year

HOUSING: HOUSING Basic Allowance for Housing (BAH) Pay Ø The Basic Allowance for Housing (BAH) is a monthly payment to offset the costs of living OFF-POST/BASE. ENLISTED: • Junior Enlisted (w/out dependents) will most always live in Barracks and will NOT receive any BAH. • Junior Enlisted with dependents (spouse and/or children) will have the option of living on-Post or living off-Post. If you live ON-Post, you basically get FREE housing (you will NOT receive BAH $$). If you decide to live OFF-Post, you will receive your BAH to help you pay the costs of living off-Post. You can decide to either RENT a home or actually BUY a home. NOTE: There is often a “Waiting List” to move onto post-housing at some installations.

HOUSING: HOUSING Basic Allowance for Housing (BAH) Pay Different Types of BAH: • There are several types of BAH to satisfy various housing situations that occur among military members. • In general, the amount of BAH you receive depends on your location, pay grade, and whether you have dependents. • Under most circumstances, you receive BAH for the location where you are assigned, not where you live.

FOOD: FOOD Basic Allowance for Subsistence (BAS) Pay Basic Allowance for Subsistence (BAS) • BAS is meant to offset costs for a member's meals. • This allowance is based in the historic origins of the military in which the military provided room and board (or rations) as part of a member's pay. • This allowance is not intended to offset the costs of meals for family members. Beginning on January 1, 2002, all enlisted members get full BAS, but pay for their meals (including those provided by the government). • Because BAS is intended to provide meals for the service member, its level is linked to the price of food. Therefore, each year it is adjusted based upon the increase of the price of food as measured by the USDA food cost index. This is why the increase to BAS will not necessarily be the same percentage as that applied to the increase in the pay table, as annual pay raises are linked to the increase of private sector wages. 2020 BAS Rates: Officers: $256. 68/month Enlisted Members: $372. 71/month

CLOTHING: CLOTHING Enlisted ONLY allowance for purchasing military clothing items FY 2020 Standard Initial Clothing Allowance (Enlisted Members Only) Army Navy (E 1 -E 6) Air Force Marine Corps Male Female Initial $1, 650. 84 $1, 874. 74 $1, 887. 49 $2, 024. 10 $1, 581. 39 $1, 773. 29 $2, 104. 92 $2, 162. 51 Cash Payment Portion $7. 99 $291. 75 $101. 90 $289. 86 $ – $309. 87 $ – $175. 00

Health Professional Special & Incentive Pay: Pay Accession Bonus HEALTH PROFESSIONS ACCESSION BONUS FY 2020 Do. D FMR Volume 7 A Chapter 5 NURSE 3 -Year Obligation 4 -Year Obligation Any Specialty Critical Care Nursing Certified Registered Nurse Anesthetist $20, 000 $0 $0 $30, 000 $100, 000 $250, 000 SPECIALTY 3 -Year Obligation 4 -Year Obligation Dietician Medical Lab Technologist Occupational Therapy Pharmacist Physical Therapist Physician Assistant Public Health Officer (Air Force) $0 $0 $0 $37, 500 $22, 500 $30, 000 $30, 000 $60, 000 $40, 000 Social Worker Veterinary Officer $18, 750 $0 $30, 000 $20, 000

SMP in ROTC = E-5 pay ! ($329. 00) DRILL PAY: National Guard & Reserves Typically, one drill weekend includes four (4) drill periods E-2: $259. 00 / weekend drill (4 x. MUTA)

Types of Deductions (Pay) – Federal Income Taxes (based upon W-2 Form). – FICA - Social Security Taxes. – FICA – Medicare. – OPTIONAL Deductions: – Serviceman Group Life Insurance (SGLI) premium ($10. 50/mo for $250, 000 worth – can get up to $40, 000). – Family SGLI premium ($2. 50/month for $50, 000). – Any previous overpayment or debt owed to the Army/Government.

Types of Allotments (Pay) – U. S. Savings Bonds ($25 = $50). – Investments (Mutual Funds). – Life Insurance (additional Commercial life insurance). – Army Emergency Relief (AER); helps Soldiers in your unit. – Combined Federal Campaign (CFC); charitable contributions. – Alimony/Child Support.

Additional “INCOME” NO Medical or Dental expenses while on Active Duty (you). - Pay minimal amount for spouse & children coverage. MOVING Expenses (FREE military moves – don’t have to pay movers): - Per Diem (daily rate for meals & incidentals). - Temporary Lodging Expenses (off-set having to use a hotel/motel). - Mileage Reimbursement (per mile). - Dislocation Allowance (money to defer costs of moving). - Do-It-Yourself (DITY) move (make $$ by saving the government $$). TAX Savings (not included in taxable income): - BAH & BAS is NON-taxable! - Other special income is typically NON-taxable - Only Base Pay is taxable. “Business Trips” (TDY) – is paid for (lodging, meals, incidentals, & transportation) Tuition Assistance (TA) for Education.

Additional Benefits 30 days of LEAVE (vacation) per year (accumulated @ 2. 5 days/month). - can accumulate up to 60 days. Federal Holidays OFF (often a 4 -day weekend). Liberal PASS policy (time-off) for good conduct or special considerations. RECREATION: Gyms, pools, recreation facilities, ball-fields, bowling alley’s, auto-craft shops, wood-working shops, arts & crafts shops, golf courses, shooting ranges, horse stables, fishing ponds/lakes, movie theaters…. SCHOOLS: Elementary & Middle Schools for children. CHURCHES on-post. PX & COMMISSARY.

LEAVE & EARNINGS STATEMENT (LES) +1. 5 Days x per Month PAID 2 x per MONTH !

Military RETIREMENT Ø The military retirement system is arguably the best retirement deal around. Ø Unlike most retirement plans, the Armed Forces offer a pension, with benefits, that starts the day you retire, no matter how old you are. Ø That means you could start collecting a regular retirement pension as early as 37 years old (enter the Service at age 17). Ø What's more, that pension check will grow with a cost of living adjustment each year. DIFFERENT PLANS (based upon when a person enters the Service): Ø Prior to September 1980 = Final Pay retirement system. Ø September 8, 1980 - August 1986 = the High 36 system. Ø After August 1986 = the REDUX system, which means you have the option to choose either the High 36 retirement system, or the Career Status Bonus/REDUX (CSB) retirement system. If you decline to make a choice you will automatically receive the High 36 retirement plan. Ø After December 31, 2017 you will be enrolled in the new Blended Retirement System.

Military RETIREMENT The Basis for Calculating Your Retirement Pay: Ø Although you have no choice in the basis for calculating your retirement pay, it is a very important detail. For instance the Final Pay retirement system bases the amount of pension on a member's last month of pay. Ø For Example: if you retired at twenty years of service on the final Pay retirement system, you received 50% of your final months pay as your pension, and that percentage increases by 2. 5% for each additional year of service. Ø Under the High 36 system a member's pension is based on the average of the highest 36 month's base pay. So if you retire under the High 36 system you would get 50% of your highest 3 years (36 months) average base pay plus 2. 5% added on for every year of service over 20 years. Ø Under the CSB/REDUX system a member's pension is based on the average of the highest 36 month's base pay like above, but the main difference is that you will get 40% of your highest 3 years (36 months) average base pay plus 3. 5% added on for each year of service between 21 - 30 years, and 2. 5% added on for each year of service between 30 - 40. Also you get a $30, 000 bonus when you reach your 15 th year of active service. Ø Under the future Blended Retirement System, your pension is similar to the CSB/REDUX system, you will get 40% of your base pay after 20 years. You also get a lump-sum bonus at 12 years of Service of 2. 5% of your annual base pay. The Blended Retirement System also includes matching funds from the government into your TSP account.

Retirement Pay Examples (20 years) Retired at 20 years of Active Service EXAMPLES: LTC (typical Officer Rank @ 20 years): Ø Base Pay = $8798. 10/month (from the 2017 Pay Chart) Ø x 12 months = $105, 577. 20 per YEAR Ø 50% (Retirement) of $105, 772. 2 = $52, 788. 60 per YEAR SFC (typical Enlisted Rank @ 20 years): Ø Base Pay (2017) = $4566. 60/month (from the 2017 Pay Chart) Ø x 12 months = $54, 799. 20 per YEAR Ø 50% (Retirement) of $54, 799. 20 = $27, 399. 60 per YEAR

Retirement Pay Examples (24 years – “Final Pay”) Retired at 24 years of Active Service EXAMPLES: LTC (typical Officer Rank @ 20 years): Ø Base Pay = $9062. 70/month (from the 2017 Pay Chart) Ø x 12 months = $108, 752. 40 per YEAR Ø + 4 x 2. 5% (Top 3)=60% (Retirement) of $108, 752. 4 = $63, 346. 32 per YEAR SFC (typical Enlisted Rank @ 20 years): Ø Base Pay (2017) = $4824. 60/month (from the 2017 Pay Chart) Ø x 12 months = $57, 895. 20 per YEAR Ø + 4 x 2. 5% (Top 3)=60% (Retirement) of $57, 895. 20 = $34, 737. 12 per YEAR

Military RETIREMENT Additional Benefits Ø Upon your retirement, you will continue to receive these benefits: Ø Medical Coverage (Tri. Care) at a reduced premium. $47/month. Ø Dental Coverage (Dental) at a reduced rate. Ø Commissary & PX privileges are maintained. Ø Veterans benefits from the VA (situation dependent). Ø Post-911 G. I. Bill (if any remaining). Ø However, you will NO longer continue to receive these benefits: Ø Housing Allowance (BAH). Ø Food Allowance (BAS). Ø Clothing Allowances. Ø Tax Defered Pays (State-by-State on State Income Taxes). Ø 30 -days of paid vacation. Ø Moving Expenses (no more paid moves).

Direct Deposit • You will be required to establish a Direct Deposit account (checking or savings) for ALL your Military pay to be deposited into. • You may elect to keep that account throughout your career (I did) or move it as you move from location to location (PCS). • Recommend that you also open a “local” account (checking and/or savings/ATM) when you PCS to a new duty station (if you keep your DD somewhere else). • Recommend elect to receive a Mid-Month Pay & and End-of-Month Pay option. • Even TDY/travel, and other payments will be DD. • My Example: $125 into Savings every pay / rest into Checking.

Leadership Responsibilities Ø Review the LES of your Soldiers: • Check & verify the number of LEAVE days (“Use/Lose” or “In-the-Hole”). • Check & verify the Mid-Month & End-of. Month Pay (“No Pay Due”). • Unit Commander’s Finance Report (UCFR). Save your LES’s

Comparative Salaries JOB TITLE SALARY EDUCATION Bricklayer $37, 000 need to find a company or school that sets up apprenticeships Elementary Teacher $32, 500 (starting) Bachelor’s Degree & Elementary Teaching Certification Nurse (LPN) $32, 00 - $42, 000 Vocational Degree in Licensed Practical Nursing Truck Driver $30, 000 certain tests and examinations HVAC Mechanic $28, 500 An Associate’s degree or equivalent formal training in HVAC repair & maintenance Dental Assistant $26, 000 (starting) Associate Degree or Certificate as a Dental Assistant Retail Sales Clerk $15, 500 in order to move beyond this position into managerial roles, you will want to gain a degree in Business Management Hair Stylist $15, 000 (starting) Associate or Vocational Degree in Barbering or Hairstyling Bartender $11, 000 formal bar tending & serving courses from a local education center.