How Much Money Does A Military Person Make? At money-central.com, we understand that navigating military compensation can be complex, and we’re here to simplify it for you, offering clear insights into military pay, benefits, and financial planning strategies. This article breaks down the base pay, allowances, and additional financial incentives for U.S. military personnel. Understanding your compensation package is the first step toward financial freedom and achieving your monetary goals. Stay tuned to discover how a military career can provide a stable income and numerous opportunities for financial advancement through pay grades, ranks, and service years.
Table of Contents
1. What is the Base Pay for Enlisted Military Personnel (E-1 to E-9)?
2. What is the Base Pay for Military Officers (O-1 to O-10)?
3. What are the Additional Benefits and Allowances for Military Personnel?
4. How Does Military Pay Compare to Civilian Salaries?
5. What Factors Influence Military Pay?
6. How Can Military Personnel Maximize Their Earnings?
7. What are the Tax Benefits for Military Personnel?
8. How Does Military Retirement Pay Work?
9. What are the Financial Challenges Faced by Military Personnel?
10. How Can Money-Central.Com Help Military Personnel Manage Their Finances?
11. Frequently Asked Questions (FAQs)
1. What is the Base Pay for Enlisted Military Personnel (E-1 to E-9)?
The base pay for enlisted military personnel varies significantly based on rank (E-1 to E-9) and years of service. It’s essential to understand this structure to appreciate the financial progression available in the military.
Let’s explore the typical annual base pay for each rank.
| Rank | Title | Typical Annual Base Pay | Monthly Base Pay (Starting) |
|---|---|---|---|
| E-1 | Airman Basic/Private/Seaman Recruit | $20,340 | $1,695 |
| E-2 | Airman/Private/Private 1st Class/Seaman Apprentice | $24,648 | $2,054 |
| E-3 | Airman 1st Class/Private 1st Class/Lance Corporal/Seaman | $25,920 | $2,160 |
| E-4 | Senior Airman/Specialist/Corporal/Petty Officer 3rd Class | $30,180 | $2,515 |
| E-5 | Staff Sergeant/Sergeant/Petty Officer 2nd Class | $35,040 | $2,920 |
| E-6 | Technical Sergeant/Staff Sergeant/Petty Officer 1st Class | $42,576 | $3,548 |
| E-7 | Master Sergeant/Sergeant 1st Class/Gunnery Sergeant/Chief Petty Officer | $51,624 | $4,302 |
| E-8 | Senior Master Sergeant/1st Sergeant/Master Sergeant/Senior Chief Petty Officer | $60,936 | $5,078 |
| E-9 | Chief Master Sergeant/Sergeant Major/Master Gunnery Sergeant/Master Chief Petty Officer | $75,348 | $6,279 |
E-1: $20,340
E-1 is the entry-level rank in the U.S. military, including Airman Basic (Air Force), Private (Army/Marine Corps), and Seaman Recruit (Navy). Service members typically hold this rank during basic training and are automatically promoted after six months.
Base pay starts at approximately $1,695 per month. After four months, it increases to $1,833 per month. Demotion to this rank can occur as a form of punishment.
E-2: $24,648
After six months, service members are automatically promoted to E-2, which includes Airman (Air Force), Private (Army), Private First Class (Marine Corps), and Seaman Apprentice (Navy).
Monthly pay increases to $2,054.
E-3: $25,920
Promotion to E-3 occurs after 12 months of service. This rank includes Airman First Class (Air Force), Private First Class (Army), Lance Corporal (Marine Corps), and Seaman (Navy).
Basic pay at this rank is $2,160 per month.
E-4: $30,180
Service members typically reach E-4 after at least two years of service. Ranks include Senior Airman (Air Force), Specialist/Corporal (Army), Corporal (Marine Corps), and Petty Officer 3rd Class (Navy).
If an E-3 does not advance after two years, their pay increases to $2,296. Those promoted to E-4 with two years of service earn $2,515 per month. After three years in service, pay increases to $2,652 per month.
E-5: $35,040
Promotion to E-5 is not automatic and typically occurs after three years of service. These ranks include Staff Sergeant (Air Force), Sergeant (Army/Marine Corps), and Petty Officer 2nd Class (Navy).
New paychecks at this level amount to $2,920 per month. After four years of enlistment, an E-5 makes $3,058 per month, and after six years, the pay increases to $3,273 per month, even without further promotion.
E-6: $42,576
Achieving E-6—Technical Sergeant (Air Force), Staff Sergeant (Army/Marine Corps), and Petty Officer 1st Class (Navy)—usually requires at least six years of service.
An E-6 with six years of service earns $3,548 per month. After another two years, the monthly salary increases to $3,864, or approximately $46,368 per year. If an E-6 does not advance to E-7 by their tenth year, they still receive a pay raise, earning $3,987 per month, and $4,225 after 12 years.
E-7: $51,624
Reaching E-7—Master Sergeant (Air Force), Sergeant 1st Class (Army), Gunnery Sergeant (Marine Corps), and Chief Petty Officer (Navy)—with fewer than ten years of service is uncommon but possible.
Those who achieve this rank are paid $4,302 per month, increasing to $4,440 after their 10-year enlistment anniversary. Some service members retire at this paygrade, with pay increasing every two years until retirement eligibility. At 20 years, pay amounts to $5,232 per month, or $62,784 yearly.
E-8: $60,936
Service members may promote to E-8—Senior Master Sergeant or 1st Sergeant (Air Force), 1st Sergeant or Master Sergeant (Army), Master Sergeant or 1st Sergeant (Marine Corps), and Senior Chief Petty Officer (Navy)—with as few as 12 years of service.
At this point, they will receive $5,078 per month. Those who retire as an E-8 after 20 years of service take home $5,860 monthly, or $70,320 annually. An E-8 with 28 years in service makes $6,626 monthly.
E-9: $75,348
E-9s have 15 to 30 years of experience. Titles include Chief Master Sergeant (Air Force), Sergeant Major (Army), Master Gunnery Sergeant or Sergeant Major (Marine Corps), and Master Chief Petty Officer (Navy).
Service members achieving this rank with 15 years of experience are paid $6,279 per month, increasing to $6,477 monthly at 16 years. After 20 years, they take home $6,790, or $81,480 annually upon retirement eligibility. Some branches allow E-9s to stay in the military up to 32 years, at which point they earn $8,151, or $97,812 per year.
Understanding the base pay for each enlisted rank is critical for those considering a military career or seeking to maximize their earnings within the military. For more detailed insights and financial planning tools, visit money-central.com.
2. What is the Base Pay for Military Officers (O-1 to O-10)?
Military officers generally earn significantly more than enlisted personnel with comparable experience. Here’s a breakdown of the base pay for officers, from O-1 to O-10.
| Rank | Title | Typical Annual Base Pay | Monthly Base Pay (Starting) |
|---|---|---|---|
| O-1 | 2nd Lieutenant/Ensign | $41,724 | $3,477 |
| O-2 | 1st Lieutenant/Lieutenant Junior Grade | $54,744 | $4,562 |
| O-3 | Captain/Lieutenant | $74,220 | $6,185 |
| O-4 | Major/Lieutenant Commander | $94,692 | $7,891 |
| O-5 | Lieutenant Colonel/Commander | $114,516 | $9,543 |
| O-6 | Colonel/Captain | $141,879 | $11,823 |
| O-7 | Brigadier General/Rear Admiral (Lower Half) | $169,944 | $14,162 |
| O-8 | Major General/Rear Admiral | $201,288 | $16,774 |
| O-9 | Lieutenant General/Vice Admiral | $203,688 | $16,974 |
| O-10 | General/Admiral | $203,688 | $16,974 |
O-1: $41,724
A newly commissioned O-1—2nd Lieutenant (Army/Marine Corps/Air Force) or Ensign (Navy)—earns $3,477 per month in base pay alone.
O-2: $54,744
Officers are automatically promoted to O-2 after two years of service. This promotion is significant as it marks one of the largest pay raises officers will see in their careers. Ranks include 1st Lieutenant (Air Force/Army/Marine Corps) and Lieutenant Junior Grade (Navy).
An O-2 earns $4,562 per month.
O-3: $74,220
Officers receive a pay raise after three years of service. Using the Army’s average promotion schedule, officers typically achieve the next rank automatically after four years.
New Captains and Lieutenants, with four years of service, make $6,185 per month. At this rank, officers receive pay raises every two years.
O-4: $94,692
By the time they reach O-4, officers have typically spent ten years in the service. Ranks include Major (Air Force/Army/Marine Corps) and Lieutenant Commander (Navy).
A Major or Lieutenant Commander with a decade of experience earns $7,891 per month, or $94,692 per year. Officer pay continues to increase with every two years of additional service. O-4 pay is capped at $8,805 a month; to earn more (excluding additional pay, bonuses, and allowances), they must promote to O-5.
O-5: $114,516
Officers typically spend at least 17 years in the military before promoting to O-5.
They earn $9,543 per month until their 18-year commissioning anniversary, at which point they earn $9,813 per month. Ranks include Lieutenant Colonel (Air Force/Army/Marine Corps) and Commander (Navy). After 18 years, officers receive annual compensation of nearly $117,756.
O-6: $141,879
Colonels and Navy Captains (“full bird”), with an average of 22 years of service, are compensated $11,823 per month.
Officers who do not promote to General or Admiral must retire after 30 years, making $12,979 a month, or roughly $155,748 per year.
O-7: $169,944
Promotion to Brigadier General and Rear Admiral depends on various factors, including job availability. An officer promoted to O-7 with 25 years of experience receives a monthly pay of $14,162.
Officers must promote to the next higher rank or retire, similar to the enlisted “up or out” policies. Those with less than five years at the lowest flag rank must retire after 30 years.
O-8: $201,288
Generals and Admirals with two stars—Major General (Air Force/Army/Marine Corps) or Rear Admiral (Navy)—must retire after their 35th year in the military.
At this point, they earn $16,774 per month, or $201,288 per year.
O-9: $203,688
Military officer pay is regulated and limited by U.S. Code.
Three- and four-star Admirals and Generals who stay in service long enough receive the maximum compensation allowed. Ranks include Vice Admiral (Navy) and Lieutenant General (other branches). Excluding additional pays, cost of living adjustments, and allowances, these officers make up to $16,974 every month, or about $203,688 a year.
O-10: $203,688
Regardless of continued time in service, once an officer achieves the four-star rank of General or Admiral, they no longer receive pay raises and are capped at $16,974 per month.
Understanding the base pay structure for military officers is essential for anyone considering an officer career path. For more detailed financial guidance and tools, visit money-central.com.
3. What are the Additional Benefits and Allowances for Military Personnel?
In addition to base pay, military personnel receive numerous benefits and allowances that significantly enhance their overall compensation. These benefits can make a military career financially advantageous.
- Healthcare: TRICARE Prime, the military’s primary healthcare package, is free for active-duty troops. In 2018, this was estimated to save $6,896 in average annual premiums for single-payers, according to research from New York University’s Stern School of Business.
- Housing Allowance (BAH): Service members eligible to live off base receive a Basic Allowance for Housing (BAH), which increases with each paygrade. The exact amount depends on location and whether the individual has children.
- Food Allowance (BAS): Service members receive allowances to help cover the cost of food.
- Cost of Living Allowance (COLA): Those stationed in expensive duty locations receive a Cost of Living Allowance (COLA).
- Uniform Allowance: Enlisted personnel receive a stipend to help pay for their uniforms.
These allowances are not taxed, meaning service members only pay taxes on roughly two-thirds of their salary. This provides a significant financial advantage.
For detailed information on benefits and financial planning tools, visit money-central.com.
4. How Does Military Pay Compare to Civilian Salaries?
Military pay can be competitive with civilian salaries, especially when considering the additional benefits and allowances.
According to a study by the Congressional Budget Office in 2020, the total compensation for military personnel is often comparable to or higher than that of their civilian counterparts, particularly for those in the early to mid-stages of their careers. However, this comparison can vary widely depending on the specific occupation and location.
- Entry-Level Positions: Entry-level military positions often provide a more stable income and comprehensive benefits package compared to many civilian jobs.
- Mid-Career: As military personnel advance in rank and gain experience, their pay and benefits continue to increase, often matching or exceeding civilian salaries in similar roles.
- Senior Positions: Senior military officers and enlisted personnel in leadership roles can earn competitive salaries, especially when considering the value of their retirement benefits and other perks.
The key advantage of military compensation is its predictability and the comprehensive benefits package, which includes healthcare, housing, and retirement plans.
For detailed comparisons and financial planning advice, visit money-central.com.
5. What Factors Influence Military Pay?
Several factors influence military pay, making it a complex but predictable system:
- Rank: Rank is one of the most significant determinants of base pay. Higher ranks command higher salaries.
- Years of Service: Pay increases with each year of service. Longevity in the military is rewarded with higher compensation.
- Specialty: Certain specialties or roles may qualify for additional pay incentives.
- Location: Duty location affects allowances such as BAH and COLA.
- Family Status: Whether a service member has dependents impacts housing allowances and other benefits.
These factors combine to determine a service member’s overall compensation package.
For personalized advice on maximizing your military pay, visit money-central.com.
6. How Can Military Personnel Maximize Their Earnings?
Military personnel can take several steps to maximize their earnings:
- Seek Promotions: Actively pursue promotions to advance in rank and increase base pay.
- Continue Education: Completing higher education can lead to promotions and higher-paying positions.
- Special Duty Assignments: Volunteer for special duty assignments that offer additional pay incentives.
- Save and Invest: Take advantage of military-specific savings and investment programs like the Thrift Savings Plan (TSP).
- Manage Finances: Create a budget and manage expenses to make the most of your income.
By taking these steps, military personnel can significantly improve their financial situation.
For comprehensive financial planning tools and advice, visit money-central.com.
7. What are the Tax Benefits for Military Personnel?
Military personnel receive several tax benefits that can significantly reduce their tax burden:
- Tax-Free Allowances: Allowances for housing, food, and clothing are not taxed.
- Combat Zone Tax Exclusion: Pay earned in a combat zone is tax-exempt.
- Moving Expense Deductions: Some moving expenses related to permanent change of station (PCS) orders are deductible.
- State Tax Benefits: Many states offer tax benefits to military personnel, such as exemptions from state income tax.
These tax benefits can result in substantial savings for military personnel.
For detailed tax advice and financial planning tools, visit money-central.com.
8. How Does Military Retirement Pay Work?
Military retirement pay is a significant benefit that provides financial security after years of service.
- Eligibility: Service members are typically eligible for retirement after 20 years of service.
- Retirement Systems: There are several retirement systems, including the High-3 system and the Blended Retirement System (BRS).
- Pension Calculation: Retirement pay is typically calculated as a percentage of the service member’s average base pay.
- Benefits: Retirees also continue to receive healthcare benefits and may be eligible for other benefits.
Military retirement pay provides a stable income stream for veterans, ensuring financial security in their post-service years.
For detailed information on military retirement and financial planning, visit money-central.com.
9. What are the Financial Challenges Faced by Military Personnel?
Despite the benefits, military personnel face unique financial challenges:
- Frequent Moves: Frequent moves can lead to unexpected expenses and financial instability.
- Deployments: Deployments can make it difficult to manage finances and can result in lost income for spouses.
- Financial Scams: Military personnel are often targeted by financial scams and predatory lenders.
- Debt: High debt levels can be a significant problem for some service members.
Addressing these challenges requires careful financial planning and access to reliable resources.
For financial advice and tools tailored to military personnel, visit money-central.com.
10. How Can Money-Central.Com Help Military Personnel Manage Their Finances?
Money-central.com offers a range of resources to help military personnel manage their finances effectively:
- Educational Articles: Easy-to-understand articles on budgeting, saving, investing, and debt management.
- Financial Calculators: Tools for calculating retirement savings, loan payments, and more.
- Product Comparisons: Reviews and comparisons of financial products like bank accounts and credit cards.
- Personalized Advice: Tailored financial advice to help military personnel achieve their financial goals.
- Expert Network: Connections to financial advisors who specialize in working with military families.
Money-central.com is committed to providing the resources and support military personnel need to achieve financial success.
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Ready to take control of your finances? Explore money-central.com today for articles, tools, and expert advice tailored to the unique needs of military personnel. Whether you’re looking to create a budget, save for retirement, or manage debt, we’re here to help you achieve your financial goals.
11. Frequently Asked Questions (FAQs)
1. How is military base pay determined?
Military base pay is determined by rank and years of service, as outlined in the military pay charts.
2. What is BAH, and how is it calculated?
BAH, or Basic Allowance for Housing, is a tax-free allowance to help service members cover the cost of housing. It’s calculated based on location, rank, and dependency status.
3. Are military allowances taxed?
No, military allowances, such as BAH, BAS, and uniform allowances, are not taxed, providing a significant tax advantage.
4. How can I increase my military pay?
You can increase your military pay by seeking promotions, continuing your education, and volunteering for special duty assignments.
5. What is the Thrift Savings Plan (TSP)?
The TSP is a retirement savings plan for military members, similar to a 401(k) plan, offering tax advantages and investment options.
6. What are some common financial scams targeting military personnel?
Common scams include predatory lending, identity theft, and fraudulent investment schemes.
7. How does military retirement pay work?
Military retirement pay is typically calculated as a percentage of your average base pay, based on your years of service and retirement system.
8. What is the Blended Retirement System (BRS)?
The BRS is a retirement system that combines a reduced pension with TSP contributions, offering more flexibility and portability.
9. Where can I find reliable financial advice for military personnel?
You can find reliable advice at money-central.com, which offers articles, tools, and access to financial advisors specializing in military finances.
10. How does deployment affect my finances?
Deployment can affect your finances due to potential lost income for spouses, increased expenses, and the need for careful financial planning.
