- Base pay is the same across the military but can increase significantly as you move up the ranks.
- Military personnel can get other tax-free allowances for housing and meals.
Most people don't turn to government jobs for high pay — unless they're considering joining the military.
Military service can offer a solid base pay, especially as you rank up. But the full compensation package of active military personnel goes beyond annual salary.
BI talked to various branches in the Department of Defense, including the Navy, Marine Corps, Army, National Guard, and Air Force, as well as military personnel across these branches, to decode the often complex military compensation packages.
Officers can earn a $220k salary
All active duty military personnel adhere to the same pay scale and ranking system for base pay, regardless of which branch they serve in.
The basic pay scale is mainly split into two categories: enlisted members and officers. Enlisted members are ranked from E1-E9 and officers are ranked from O1-O10.
Some military members also receive special pay on top of their base pay if they hold a military specialty or qualification, or are based in a high-risk location. For example, an E5 nuclear specialist in the military receives an extra $150 a month. In the Space Force, specialty personnel get paid in increments of $75 to $450 per month, according to a spokesperson.
An enlisted service member with an E-1 ranking receives $2,017.20 per month in basic pay, according to the DoD 2024 basic pay table. Usually, E1-E4 members are living in the barracks so they have little to no expenses.
Service members receive a routine pay increase about every two years depending on their rank, but promotions can vary and it depends on evaluations, time spent in the military, and the specific branch. For example, if you're in the Navy, you may need to take exams to get promoted. To become an officer, you have to have a college degree.
A new officer's basic pay begins at about $3,826 per month, while a more senior officer with a 0-5 rank with 10 years of service will earn $9,153 per month.
An O-9 or O-10 officer can make up to about $18,491 per month, which comes out to about $221,900 per year. The earliest you can make that amount is after 20 years of service if you make it to the top ranking, which is difficult to achieve.
Paychecks also include tax-free allowances
Basic pay serves as the primary compensation for service members, but they also get several tax-free allowances on their paychecks.
Basic Allowance for Housing, or BAH, is one of the most common tax-free allowances. Service members start getting BAH when they reach E-5, get married, or have kids. BAH rates are determined by the Department of Defense and are based on housing research and market analysis. They typically increase each year.
Service members receive amounts depending on their rank, number of dependents, and cost of living in their location. For example, an E-5 with dependents in San Diego receives $3,882 per month in BAH, according to Veteran.com.
Service members outside the US may also receive an additional overseas housing allowance to incentivize military members to serve internationally.
Military personnel may also receive Basic Allowance for Subsistence, or BAS, which is meant to offset the cost of their meals. If they qualify, enlisted members get about $460 a month in BAS, according to the Department of Defense's Finance and Accounting Service.
There are various other allowances that depend on specific circumstances, like clothing allowances for uniforms or family separation allowances for service members who serve a tour of duty.
There can be big bonuses
The US military hands out signing bonuses as a recruiting tool to accelerate and fill certain gaps.
A typical enlistment bonus can range from $1,000 or $2,000, according to an Army spokesperson.
Some programs pay up to $50,000 for enlistment bonuses offered to those entering a key specialty like cyber military intelligence, according to an Army spokesperson.
The military also pays retention bonuses that target critical specialties. Some officers can receive as high as a $245,000 bonus over a 7-year contract. Bonus amounts are dependent on qualified officer types and when they sign the contract in their careers.
The dispersal of funds depends on the service designator program, a Navy spokesperson said. While some branches may give 50% upfront and disperse the rest over five years, others may disperse it evenly within the contract period.
The majority of the bonuses are taxable, with the exception of bonuses given to service members in a non-taxable zone, like Bahrain.
Common positions that receive bonuses include pilots, nuclear sailors, and service warfare officers, according to a Navy spokesperson.
Free education, free healthcare, and a pension
The military offers large education benefits with the Post-9/11 GI Bill, which helps service members and their families pay for some of — or in some cases all of — the costs for college, grad school, and other training programs.
If you meet the 36-month requirement, you can get full tuition paid at a public school or up to $27,120.05 at a private institution. You may also be eligible for a housing allowance, according to the US Department of Veteran Affairs. You can also get up to 90% of education costs covered if you've served under 36 months.
Service members also qualify for the Blended Retirement System after 20 years of service. The retirement plan offers a traditional pension, which includes roughly 40% of pre-retirement pay calculated by multiplying 2% by their years of service by their highest 36 months of basic pay.
The system also offers a Thrift Savings Plan, which is a government-run 401(k) account, similar to a civilian retirement plan. It allows members to invest their money with a 1% contribution after 60 days of service. The government will also match contributions up to 4% of basic pay starting the second year. TSP can be accessed even if you don't complete 20 years of service.
Active duty service members, their families, and retirees also receive free medical and dental care through Tricare, the military health care program. With Tricare, military members have no premium charges for coverage, and no out-of-pocket costs for medical care or prescriptions.
Service members who serve 40 years in the military qualify for a yearly pension with their full salary.
As a service member, you'll also be eligible for a number of other benefits like discounted commissary and exchange at grocery stores and department stores. The military also covers the cost of moving if you're deployed to a different location.
Do you work in the military and want to share your story? Email the author at aaltchek@insider.com.