Benefit Overview

Basic Pay is the fundamental component of your salary as a U.S. military member. It is taxable income and is determined by your pay grade (e.g., E-4, O-3) and total years of service (Time in Service).

Why This Benefit Is Useful

• Forms the basis for retirement pension calculations.
• Determines your contribution limits for the Thrift Savings Plan (TSP).
• Represents your primary, predictable income stream.

How to Implement or Use the Benefit

• 1.Verify your Pay Grade and Pay Entry Base Date (PEBD) on your monthly Leave and Earning Statement (LES) via myPay.
• 2.Review the official pay charts annually to anticipate future earnings from promotions and longevity.

Eligibility

All active-duty, Guard, and Reserve service members are eligible for Basic Pay corresponding to their rank and time in service. Pay tables are updated annually.

Benefit Overview

BAH is a non-taxable allowance provided to service members living off-base to cover housing costs. The rate is based on your duty station ZIP code, pay grade, and dependent status, and is intended to cover 95% of housing costs for a comparable civilian.

Why This Benefit Is Useful

• Dramatically increases your take-home pay because it is not subject to federal or state income tax.
• A primary vehicle for wealth-building; 'pocketing' the difference between your BAH and actual rent is a key savings strategy.
• Can be used to qualify for a VA Home Loan mortgage.

How to Implement or Use the Benefit

• 1.Use the official DoD BAH Calculator to find the exact rate for your situation before signing a lease.
• 2.Ensure your DEERS and personnel records are correct regarding your dependent status to receive the proper rate.

Eligibility

Eligibility is generally granted to members who are not required to live in the barracks or dorms. This typically includes members with dependents and more senior members, though rules vary by location.

Benefit Overview

BAS is a non-taxable monthly allowance to cover the cost of food. For 2024, it is approximately $316 for officers and $460 for enlisted members. This amount is standard and does not vary by location.

Why This Benefit Is Useful

• Provides a tax-free supplement to your income for groceries and meals.
• Unlike BAH, this is a flat rate you receive regardless of your spending habits.

How to Implement or Use the Benefit

• 1.BAS is paid automatically. If you are required to eat at a dining facility (DFAC), you may see a corresponding deduction on your LES.
• 2.Verify the correct amount is reflected on your LES each month.

Eligibility

All service members are entitled to BAS, but it may be provided 'in-kind' (i.e., meals at a DFAC) for members living in the barracks.

Benefit Overview

S&I pays are additional payments for service members in specific jobs, skills, or locations. Examples include Hazardous Duty Incentive Pay (HDIP, e.g., jump pay at $150/mo), Hostile Fire Pay/Imminent Danger Pay (HFP/IDP at $225/mo), and large, multi-year Selective Reenlistment Bonuses (SRBs).

Why This Benefit Is Useful

• Can dramatically increase your income, sometimes by 50% or more.
• Provides financial rewards for taking on demanding roles or serving in austere locations.
• Large bonuses can be used to achieve major financial goals, like paying off all debt or fully funding an IRA for several years.

How to Implement or Use the Benefit

• 1.Consult your career counselor or unit admin (S-1) to verify which S&I pays you are eligible for.
• 2.Be aware that most S&I pays are taxable, and lump-sum bonuses can be taxed heavily in the year they are received.

Eligibility

Eligibility is highly specific and depends on your MOS/AFSC, qualifications, location, and the current needs of the service.

Benefit Overview

All pay earned by an enlisted member while serving in a designated combat zone for any part of a month is exempt from federal income tax. For officers, the exclusion is capped at the maximum enlisted amount plus HFP.

Why This Benefit Is Useful

• Provides a massive boost to your take-home pay during deployments.
• Creates a unique opportunity to save or invest a large portion of your income in tax-advantaged accounts like the TSP.

How to Implement or Use the Benefit

• 1.This benefit is typically applied automatically based on your deployment location.
• 2.While deployed to a CZTE area, you can contribute to a Roth TSP with tax-free dollars, resulting in tax-free growth and tax-free withdrawals in retirement—a rare 'triple tax advantage'.

Eligibility

You must be serving in a location designated by the DoD as a combat zone.

Benefit Overview

A tax-free monthly benefit paid to veterans with service-connected disabilities, rated from 0% to 100%. A 100% disability rating can result in over $3,700 per month, tax-free.

Why This Benefit Is Useful

• Provides a stable, non-taxable income stream after service to compensate for injuries or illnesses incurred.
• A high enough disability rating can waive the VA Loan Funding Fee, saving you thousands on a home purchase.

How to Implement or Use the Benefit

• 1.The best time to file is 90-180 days *before* separating via the Benefits Delivery at Discharge (BDD) program.
• 2.Work with a Veterans Service Organization (VSO) like the DAV or VFW for free, expert assistance with your claim.

Eligibility

Veterans who can prove a medical condition was caused or aggravated by their military service.