Basic pay

Also known as "base pay", this is given to members of the active duty military on a monthly basis and is determined by their rank (or more appropriately their pay grade) and their length of time in military service. Basic pay is the same for all the services.

37 USC 1009 provides a permanent formula for an automatic annual military pay raise that indexes the raise to the annual increase in the Employment Cost Index (ECI). The fiscal year 2010 president's budget request for a 2.9% military pay raise was consistent with this formula. However, Congress, in fiscal years 2004, 2005, 2006, 2008, and 2009 approved the pay raise as the ECI increase plus 0.5%. The 2007 pay raise was equal to the ECI.

A military pay raise larger than the permanent formula is not uncommon. In addition to across-the-board pay raises for all military personnel, mid-year, targeted pay raises (targeted at specific grades and longevity) have also been authorized over the past several years.

Reserve/National Guard "drill" pay

According to Title 37 United States Code §206, the basic pay amount for a single drill is equal to 1/30 of the basic pay for active duty service members.^[2]

For members of the Reserve components of the United States Armed Forces performing duties with their units on drill weekends, pay is usually based on four drill sessions of four hours per session, equal in pay to four days of active duty basic pay.

Common allowances

• Basic Allowance for Housing (BAH)
  • According to myarmybenefits.us.army.mil Basic Allowance for Housing (BAH) is a United States (U.S.) based allowance that provides uniformed Service members equitable housing compensation based on housing costs in local housing markets when government quarters are not provided. A Service member stationed outside the U.S., including U.S. territories and possessions, who does not have government housing available is eligible for Overseas Housing Allowance (OHA). 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. Additionally, you may be entitled to some BAH amounts if you are residing separately from your dependents. This occurs in situations involving unaccompanied overseas tours or having a dependent Child that resides with a former Spouse. The rules regarding these situations can become quite complex. Consult your Finance Office if you are in one of these situations.^[3]
• 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 1 January 2002, all enlisted members receive full BAS, but paid for their meals (including those provided by the government). It was the culmination of the BAS reform transition period.

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 basic pay, as annual pay raises are linked to the increase of private sector wages. As of 2024, enlisted members receive $460.25; officers receive $316.98 per month.

Enlisted BAS II. Enlisted members on duty at a permanent station and assigned to single (unaccompanied) government quarters, which do not have adequate food storage or preparation facilities, and where a government mess is not available and the government cannot otherwise make meals available, may be entitled to BAS II. The rate for BAS II is fixed at twice the rate for standard enlisted BAS. Effective 10 February 2006, the Navy authorized the payment of BAS II. Effective 1 October 2010, the Air Force authorized payment of BAS II to members at specific locations.

• Overseas housing allowance (OHA) is BAH for servicemembers stationed OCONUS. This differs from BAH in that it reimburses actual housing costs below a certain amount, and therefore servicemembers cannot save any extra pay from this allowance.

• Clothing allowance: Comes to most members on an annual basis to buy and replace required uniforms. The amount varies by service and rank. (Typically, commissioned officers receive no clothing replacement allowance.)

Pay raises

U.S. code dictates a rather complex equation for military pay raises, based on the Employment Cost Index, a measure compiled by the Bureau of Labor Statistics to track the costs of labor for businesses. Military pay increases by "the percentage (rounded to the nearest one-tenth of one percent) by which the ECI for the base quarter of the year before the preceding year exceeds the ECI for the base quarter of the second year before the preceding calendar year (if at all)". Specifically, the code states that the ECI for wages and salaries of private industry workers will be used.

Essentially, when the ECI goes up, so does military pay, so that military salaries do not fall behind civilian ones. For example, because the ECI increased 1.4 percent in 2009, that was the military pay raise in 2010. That raise was unusually low — the smallest percent change since the series began in 1975, according to the Bureau of Labor Statistics.

The president is empowered to suggest a lower or higher pay raise, which must be ratified by Congress, in extenuating circumstances like an economic crisis. Congress can also vote to change the president's proposed decrease or increase. For the 2011 budget, the House Armed Services Committee suggested boosting the 1.4 percent raise. But Defense personnel officials resisted, saying they would rather that money be used for other programs that benefit military families. After an 11-year string of increases that slightly exceeded average private sector annual raises, Army Deputy Chief of Staff for Personnel Lt. Gen. Thomas P. Bostick said that, "We actually think we have a surplus in terms of pay." The Department of Defense announced increases in military housing allowances, family support programs, and child care and tuition assistance for military families in the 2011 budget request, many of which outpace the base pay increase.