Does The Military Get Paid

Factors That Affect Military Pay

Basic pay varies depending on your paygrade/rank, along with the number of years you have served.

For instance, in 2022, a newly enlisted service member with a paygrade of E-1 receives $1,833 per month in basic pay. Meanwhile, a more senior enlisted person with a paygrade of E-6, who has more than a decade of service, earns $3,988 monthly.

Officers are paid more. A new officer’s basic pay begins at $3,477 in 2022, while a more senior officer with a paygrade of O-4, having served more than 10 years, receives $7,892 monthly.

Basic pay is a service member’s primary compensation. But your paycheck is also likely to contain several tax-free allowances as well as special pays based on your duty station, qualifications or military specialties. All of these things are part of normal military pay, salary or compensation.

Most allowances are non-taxable, so they can contribute to a significant portion of your paycheck. For example, the Basic Allowance for Housing is excluded from gross income for tax purposes.

To calculate your complete military pay, including base pay, BAH and other special pays, use the Military Pay Calculator.

Lessons Learned From The Last Government Shutdown

The last government shutdown affected just about everyone in some way. And for many of us, it was scary. Would we get paid? Would veterans benefits continue?

The answers changed depending on the day of the week. Until laws were changed, no one would get paid. Congress eventually passed a law that ensured active duty military members would get paid, but many non-military government employees were furloughed without pay .

There were other problems:

Many members of the Guard and Reserves had their drills canceled, reducing their points for the year, and leaving them without their expected drill pay.

Numerous base activities and benefits were temporarily canceled or shut down. The Commissary, base exchange, child care, and other base benefits were unavailable.

In short, it was a bad dream for most military members and government employees. And here is the worst part: it can, and likely will, happen again.

Like the last few times dealing with the debt ceiling, the government placed a band-aid on the wound. They didnt make a permanent fix. This has been going on for the last two years, and it is likely to continue unless the government passes a permanent solution. In the meantime, it is up to all of us to do as much as we can to take control of our lives. Here are some tips we can all use to get on a better financial footing so the next time something like this happens it will still be an inconvenience, but hopefully, it wont be catastrophic.

Why Does The Government Shut Down

First, lets start with a little background on the situation. The most common reason the U.S. government shuts down is for failing to pass an Appropriations Bill . The next most common reason is the government runs up against its Debt Ceiling, which is its ability to borrow money.

The US government is required to pass a spending bill each year. These appropriations bills can be equated to their budget. But the government also needs to pass an bill, to give the government the authority to spend the funds.

The military is funded through the National Defense Authorization Act or NDAA. The 2023 NDAA has been passed by Congress and received President Bidens signature. In 2023, the law allocates $816.7 billion to the Defense Department and a 4.6 percent pay raise for military and civilian members of the department.

Note: The Appropriations and Authorizations are all based on the Fiscal Year.

The Federal Budget extends for the Fiscal Year, which begins on October 1st and expires each year on September 30th. Without passing a new spending bill, the government will essentially shut down. However, the government can pass what is called a Continuing Resolution which allows the government to continue functioning for a certain amount of time.

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Will Federal Employees Get Paid During A Government Shutdown

As mentioned above, some essential and emergency government personnel are exempt from government shutdowns. However, they can still have a large impact on the federal employee population. For example, during the 2018/2019 government shutdown, approximately 25% of federal employees, or an estimated 800,000 individuals, went without pay.

To add insult to injury, almost half of the 800,000 employees who werent being paid were still required to show up to work. The remaining members were furloughed, which means they still have their job, but they arent required to report to work. And none of them were being paid while on furlough.

Some government employees may not be required to report to work.

If a funding bill is not passed, most government employees will be temporarily furloughed and will not be required to work until a spending bill is passed. However, there are exemptions, especially for those whose work is required for national security, including most military members.

In previous shutdowns, some military members were not required to report to work. These groups of military members will be broken into exempt and non-exempt categories. So operations in war zones, humanitarian relief, and many people involved in fields such as medical, security, and transportation will continue to work.

Will Federal Employees Receive Back Pay?

Can Federal Employees Claim Unemployment Benefits During a Furlough?

More tips on how to deal with the government shutdown.

Did You Know Military Pay Is Calculated Monthly

There is an important part of military pay and allowances that many people miss: nearly everything is calculated on a monthly basis, and net pay amounts are absolutely calculated on a monthly basis. Yes, you can opt to get a mid-month pay, but it is technically an advance of half your estimated monthly pay.

Say what?

Let me see if I can explain.

Each month, a servicemember receives pay and allowances. Nearly all of them are calculated on a monthly basis, and even the ones that aren’t calculated monthly are still paid in a monthly fashion. Base pay, Basic Allowance for Housing , Basic Allowance for Subsistence and most special pays and allowances are calculated monthly. Likewise, deductions and allotments are calculated on a monthly basis: taxes, insurance, payments, etc.

About a week before the end of the month, the folks over at the Defense Finance and Accounting Service calculate the entire month’s activity and figure out your net pay for the month. They include things like changes that have occurred during the month to end up with an accurate amount of pay and allowances for the month. DFAS then issues a Leave and Earnings Statement to explain how they’ve done their math.

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Job Growth Trend Or Outlook

The demand for military personnel rarely goes down. The military has an ongoing goal of maintaining a sufficient level of forces to fight, deter and overcome threats and conflicts at the same time. When the economy is good, the Army must compete with private companies for qualified candidates. In times of war, all of the military branches need to recruit more soldiers.

In short, the Army will always have jobs available and a need for more recruits.

Joining the Army, earning a good income, getting specialized training and receiving free health and medical coverage are enticing benefits for a lifetime path to success and financial security. With skyrocketing costs of going to college, pursuing a career in the Army is an attractive way to go.

References

What Happens To Other Federal Benefits During A Government Shutdown

Note: The following types of payments are generally safe during a government shutdown:

• Military Retirement Pay
• VA Disability Compensation & VA Health Care
• Social Security benefits
• Medicare and Medicaid

The government shut down will only affect paychecks for government spending which must be approved on an annual basis. Some military-related payments are made from a separate pot of money and likely wont be affected. The following payments are expected to continue without interruption during a government shutdown:

• Veterans receiving monthly disability and compensation payments

What about Social Security Benefits, Veterans Health benefits, Medicare, Medicaid, etc.?

Certain mandatory, non-discretionary, and entitlement payments are unaffected. This means the government will continue sending Social Security Benefits to recipients. Medicare, Medicaid, and VA health care benefits would continue during a shutdown, but payments for the care may be later than normal. So be aware of this when planning any non-emergency or low-priority medical care. Also, note that many non-emergency veteran health care services were curtailed during previous government shutdowns.

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About The Military Pay Calculator

With a few taps or clicks, the Military.com Military Pay Calculator can help you easily determine how much you will earn before taxes, now and in the future. Getting ready to move? Factor in the BAH for your new ZIP code. Getting promoted or deployed? Adjust your information, and learn what you’ll take home.

Take Control Where Possible

At the end of the day, the government shutdown was a major inconvenience for many people. And that is unfortunate because the shutdown harmed the people the government is supposed to protect. That makes for an eye-opening experience for many of us. For me, it reinforced that I need to take as much control into my hands as possible.

Note: Here are some tips for Dealing With a Missed Military Paycheck. These tips can show you how to get by on your own or how to contact your lender, landlord, or financial aid service to get help with this situation

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Travel Benefits And Vacation Time

With installations throughout the world, the military pays relocation expenses for you and your family. In addition to seeing the world while serving your country, military members and their families are eligible for “space-available” military flights to almost anywhere in the world at little or no cost and for space-available lodging at any military base. Additionally, there are world-class resorts only for military personnel, such as Shades of Green near Walt Disney World, the Hale Koa Hotel on Waikiki and resorts in Japan, Germany and South Korea.

Thanks For Reaching Out

Questions you may have right now

Who will reach out to me?

One of our recruiters will either call or email you to set up time to talk.

Who will reach out to me?

One of our ROTC recruiters will either call or email you to set up time to talk.

What will you ask me?

Our conversation will likely begin with some basic qualifying questions, like your age and education level. From there, the conversation will be about getting to know you and your goals for the future. Expect us to ask about your interests and skills so we can suggest Army jobs that might interest you.

How can I prepare for the conversation?

While we’ll ask you questions, this is your opportunity to ask some of your own. Here are a couple to get you started:

How can the Army help me pay for college?

Do I have to go to Basic Training?

How can I prepare for the conversation?

While we’ll ask you questions, this is your opportunity to ask some of your own. Here are a couple to get you started:

What is the time commitment for part-time service?

How can I prepare for the conversation?

While we’ll ask you questions, this is your opportunity to ask some of your own. Here are a couple to get you started:

Can the Army help me pay for medical school?

Do I have to go to Basic Training?

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Navy Federal Military Pay Dates

Because Navy Federal Credit Union checking accounts have different benefits, NFCU has two pay deposit dates depending on what type of account you use for your pay deposit.

Active Duty Checking The Active Duty Checking benefit of one business day means that pay will be pending on Wednesday, 11 January 2023, to be processed the deposit overnight with the pay available for use on Thursday, 12 January 2023.

However, NFCU members with accounts that are not Active Duty Checking accounts should see their pay pending on Thursday, 12 January 2023, to be posted overnight and available for use on Friday, 13 January 2022.

Cash Compensation For Active

Every four years the Quadrennial Review of Military Compensation examines the level and structure of military compensation to ensure that it enables the armed services to meet manpower requirements in a timely and costeffective manner. In addition to providing flexibility for varying pay among personnel, these payments enable the services to recognize unusual duties and hazards and to provide incentives for enlistment in special skill areas. Of particular interest in the most recent review was the degree to which special and incentive payments, such as hostile fire pay, sea duty pay, and enlistment and reenlistment bonuses, contribute to total military pay.

To analyze the role of different components of military pay, RAND researchers examined data files on occupation, length of service, pay components, and tax advantages for each member of the military. Total cash compensation was defined to include basic pay, housing and subsistence allowances , federal tax advantages arising from tax-free allowances, other miscellaneous allowances , special and incentive payments, and bonuses. Regular military compensation, a measure of pay commonly used by the Department of Defense, includes basic pay, housing and subsistence allowances, and the tax advantage. Other compensation components, such as retired pay and health care benefits, were not included in the definition of cash compensation.

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How Much Is My Military Pay

Military base pay is based on your rank and total years of service. Your base pay is the same regardless of your branch of service or which job you perform. Here are the 2023 military pay charts.

Military members are also eligible for benefits such as a food allowance called basic allowance for subsistence , basic allowance for housing , and sometimes other forms of incentive pay, cost-of-living adjustments based on your location, per diem and travel pay, and other types of compensation.

These different types of allowances can make your pay vary from month to month, based on several factors.

The Intangible Rewards Are Priceless

Your military experience will impact your entire life. Through military service, you learn self-discipline, earn respect and demonstrate work ethic. The experience, training, and leadership skills you earn in the military are exactly what employers seek, but that’s just an additional benefit.

A feeling of patriotism, sense of duty, honor, selfless service and purpose that can be gained only through military service are some of the sentiments that veterans and service members share. All this, plus leadership skills, doing work that matters, camaraderie and accomplishment are just some of the intangibles that are perhaps the most rewarding of all military benefits.

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Enrollment In The Brs Depends On When You Joined The Service

• If you joined before January 1, 2006, you remained in the legacy retirement system.

• If you joined the service on or after January 1, 2018, you were automatically enrolled in the BRS.

• If you joined between January 1, 2006, and December 31, 2017, you could stay in the legacy system or enroll in the new one. The last day to enroll in the BRS plan was December 31, 2018.

Other Pays And Allowances

The local finance office can provide additional information about the many other special pays and allowances available in special circumstances or to service members performing certain duties. Examples of special pays and allowances include but are not limited to:

The tax implications of the various military pays and allowances can prove complicated. Some types of military compensation are taxable and others are not.

A useful rule of thumb: If the entitlement contains the word pay in the title i.e., Basic Pay it is considered taxable income unless the service member is serving in a designated tax-free combat zone. In a combat zone, all income earned by enlisted service members is tax free, including assignment and re-enlistment bonuses.

Officers may exclude from income tax only the amount equal to the highest monthly rate of enlisted pay plus their $225 Imminent Danger Pay. If the entitlement contains the word allowance in the title i.e., Basic Allowance for Housing it usually is nontaxable.

The following example illustrates monthly pay and how that pay is taxed for a third-year E-4 with a family, when deployed to Iraq from his/her duty station at Joint Base Lewis-McChord, Wash.:

In garrison: $2,507.10 basic pay + $386.50 BAS + $1,908 BAH = $4,801.60 total .

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What Happens If The Government Shuts Down

Each government shutdown is slightly different. The Office of Management and Budget determines the exact government agencies that will be impacted by a government shutdown.

In general, emergency and essential services remain operational. This generally includes the military, air traffic controllers, TSA, federal law enforcement officers, and federally funded medical personnel.

However, it does not always include the entire Department of Defense workforce, including traditional members of the Guard or Reserves, dual-status technicians, and many others.

In some instances, Congress passed emergency funding bills to keep certain government organizations operational, while other parts of the government were temporarily shut down. In some years, this emergency funding has included military pay and benefits, while in other years, it did not.

We cant tell you for certain how any given shutdown will impact government or military operations because each situation is unique. But we can give you some examples from recent years.