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Thursday, September 09, 2010
Army Reserve Family Programs
Military Pay, Benefits and Entitlements

Entitlements depend on the Servicemember's rank, length in service, duty location, dependant status, availability of government quarters and rations and duty status.


Military Pay and Benefits  

Military Pay and Benefits

Download the Army Reserve Finance Guide for Mobilizing Soldiers or view VOLUME 7A: Military Pay Policy and Procedures - Active Duty and Reserve Pay 

Base Pay is the fundamental component of military pay. All members receive it and typically it is the largest component of a member's pay. A member's grade (usually the same as rank) and years of service determines the amount of base pay received.   All Soldiers receive base pay
To see the current pay table or learn about annual pay raises, select one of the following topics:
Active Duty Pay
Reserve Drill Pay

Special Duty Assignment Pay is for specific qualifications such as recruiting, retention, and CSM at a two star command.

  • Entitlements
  • Base Pay - varies
  • Basic Allowance for Subsistence (BAS) - varies
  • Basic Allowance for Housing (BAH) - varies
  • Family Separation Allowance - $250
  • Hostile Fire/Imminent Danger(Combat Pay) - $225
  • Hardship Duty-Location - varies

    Deductions (Withholdings)
  • Taxes – Federal and State income tax
  • Social Security (FICA) and Medicare (FICA)
  • Service members’ Group Life Insurance (SGLI) and Family SGLI (FSGLI)
  • Thrift Savings Plan (TSP)

    Combat Zone Tax Exclusion (CTZE) -  While in a designated Hostile Fire Pay (HFP)/Imminent Duty Pay (IDP) location, you may be entitled to the CZTE.  This exclusion allows for all or part of Base Pay, HFP, and all other taxable wages to be tax exempt for all Soldiers. There are no limitations for enlisted and warrant officers, while the tax exempt portion of base pay for officers cannot be more than the base pay equivalent to that earned by the Sergeant Major of the Army. HFP is tax exempt for all ranks. You will be refunded taxes withheld while in CZTE the month following the month of withholding (i.e. taxes that are withheld from October entitlements will be refunded in November). Finance at the Theater of Operations has the responsibility to submit the request for CZTE.  Tax information for members of the U.S. Armed Forces

    Leave and Earnings Statement (LES) - The DJMS Leave and Earnings Statement (LES) DFAS Form 702 is a comprehensive statement of a member's leave and earnings showing your entitlements, deductions, allotments (fields not used for Reserve and National Guard members), leave information, tax withholding information, and Thrift Savings Plan (TSP) information.  At present the Servicemember's LES is sent to the Soldier’s duty location or address on pay system.   As of October 1, 2005, the Servicemember must log onto mypay to view LES.

    View Reserve LES and description
    View Active LES and description

  • Allowances  

    Allowances provided for specific needs such as:

    Housing - Basic Allowance for Housing (BAH) is based on geographic duty location, pay grade, and dependency status. The intent of BAH is to provide uniformed service members accurate and equitable housing compensation based on housing costs in local civilian housing markets, and is payable when government quarters are not provided. Read more or visit BAH Information site
    Food - Basic Allowance for Subsistence (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. Read more
    Clothing - Clothing Monetary Allowance
    as well as other special instances such as Family Separation Allowance (FSA)
    All allowances are non-taxable

    Tax Exempt Allowances - While all pays are taxable, most allowances are tax-exempt. The primary allowances for most individuals are BAS and BAH, which are tax-exempt. Conus COLA is one allowance that is taxable. A law change mandated that every allowance created after 1986 would be taxable. CONUS COLA was authorized in 1995 and, thus became, the first taxable allowance. Tax savings can be significant as BAS and BAH averages over 30% of a member's total regular cash pay. The average tax advantage is about $2,400. In addition to being tax-exempt from Federal and State taxes, these allowances are also excluded from Social Security taxes. More


    Benefits  

    The Military has a wide variety of benefits ranging from complete health care to commissary and exchange shopping. A recent GAO review of active duty military benefits noted that when comparing the types of benefits offered by the military with those offered in the private sector, all the core benefits offered by most private sector firms-retirement pay, health care, life insurance, and paid time off-are offered by the military. In fact, the GAO review found that military benefits in some cases exceed those offered by the private sector.

    For more detail on the benefits available to active duty, reserve and retired military members, click on Benefits for Service Members, which provides a listing of military benefits and a number of additional useful links.

     

    Defense Commissary Agency (DeCA)

    Defense Commissary Agency (DECA) LogoDefense Commissary Agency (DeCA) with headquarters at Fort Lee, Virginia, operates a worldwide chain of commissaries providing groceries to military personnel, retirees and their families in a safe and secure shopping environment. Authorized patrons purchase items at cost plus a 5-percent surcharge, which covers the costs of building new commissaries and modernizing existing ones. Shoppers save an average of 30 percent or more on their purchases compared to commercial prices – savings worth more than $2,700 annually for a family of four. A core military family support element, and a valued part of military pay and benefits, commissaries contribute to family readiness, enhance the quality of life for America’s military and their families, and help recruit and retain the best and brightest men and women to serve their country.

     

    Army and AirForce Exchange Service

    Army and AirForce Exchange Service Logo

    AAFES provides quality goods and services at competitively low prices and generates earnings to support MWR Programs.

     

    Army MWR

    Army MWR LogoArmy MWR exists because the U.S. Army is committed to the well-being of the community of people who serve and stand ready to defend the nation.
    Army MWR is a comprehensive network of support and leisure services designed to enhance the lives of soldiers (active, Reserve, and Guard), their families, civilian employees, military retirees and other eligible participants. Over 37,000 MWR employees worldwide strive to deliver the highest quality programs and services at each installation -- from family, child and youth programs to recreation, sports, entertainment, travel and leisure activities.
    Their mission is to serve the needs, interests and responsibilities of each individual in the Army community for as long as they are associated with the Army, no matter where they are.
    MWR contributes to the Army’s strength and readiness by offering services that reduce stress, build skills and self-confidence and foster strong esprit de corps. MWR services also help the Army attract and retain talented people. MWR is proof of the Army’s commitment to caring for the people who serve and stand ready to defend the nation.


    Pay Issue Resolution  

    Chain to follow for pay issue resolution:

    1. Begin with unit’s rear detachment pay administrator
    2. Area Support Group or Brigade Finance NCO
    3. RRC or Division HQ Finance NCO (G8)
    4. USARCPAYINQUIRY@emh2.mccoy.army.mil or (877) 462-7782; (608) 388-5627/5699/5618; DSN 280-5627
    FOR MOB Soldiers ONLY
    5. U.S. Army Finance Command (FINCOM): (888) 332-7366 or DSN 699-0300


    Family Readiness: Financial Planning for Soldier and Family  
    Both the Soldier and Family need to understand how the deployment will impact the family's finances.  This video will assist you in understanding military pay and give you tips on how to create a budget that will work for your family.  View Financial Planning.

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