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Secretary of Defense signs the list.
President of the United States signs the list.
SECNAV publishes the list for rear
admiral (lower) and rear admiral (upper)
in an ALNAV message.
U.S. Senate confirms the list. Lieutenant
(active Reserve), lieutenant commander
(Reserve), and chief warrant officer
selectees do not require Senate confirma-
tion.
SECNAV authorizes promotions through
ALNAV messages as vacancies occur. This
event normally occurs at monthly intervals
in the fiscal year following the fiscal year
of selection. Assuming officers maintain
all qualifications, they will receive the first
paycheck for the next higher grade soon
after their name appears on this ALNAV
message.
PAY AND ALLOWANCES
Two general statements can safely be made
about military pay. Few, if any, people become
wealthy on the basis of their military pay alone.
On the other hand, if budgeted wisely, military
pay provides a comfortable standard of living.
From a career standpoint, you should keep
certain factors in mind when making dollar-for-
dollar comparisons of military and civilian pay.
Military pay is guaranteed and predictable. The
current trend in military pay is upward. Periods
of business recession do not adversely affect
military pay. A portion of the total military pay
is not taxable, and provisions are made for
additional pay for various forms of special or
hazardous duty.
Many publications contain descriptions of the
entire matter of military pay. Our purpose here
is to give an overview and to define and briefly
discuss elements that compose the total pay
structure.
Commissioned officers and warrant officers
are assigned by law to paygrades on the basis of
the grades in which they are serving, whether
under temporary or permanent appointment.
Enlisted personnel, on the other hand, are
assigned to paygrades by the Secretary of the
Navy.
BASIC, SPECIAL, AND
INCENTIVE PAY
Basic pay, which accrues for all personnel on
the basis of paygrade and cumulative years of
service, is the major portion of a person’s total
pay. The cumulative years of service may have
been in any branch of the armed services or a
Reserve component.
Special pay is added compensation received
for performing special duties. For officers,
“special duty” is limited to medical and dental
billets and duties involving diving and coming
under hostile fire. Special pay for doctors and
dentists is prorated on the number of years they
have been on active duty (although certain medical
officers serving in critical specialties also receive
a special continuation pay). Special pay for hostile
fire and diving involves flat monthly sums
regardless of grade or years of service. As a matter
of interest, special pay for hostile fire is not
payable in time of war declared by Congress.
Incentive pay, prorated according to grade and
years of service, is additional pay received for
performing hazardous duty. Included in this
category are flight pay for both crew and non-
crew members; submarine pay; and extra pay
received for parachute, aircraft carrier flight deck,
explosive demolition, experimental stress, or
leprosarium duty.
ALLOWANCES
An allowance is a contribution of money, or
its equivalent “in kind,” to help meet expenses
incurred as the result of membership in the naval
service. Allowances are not taxable.
Basic Allowance for Quarters (BAQ)
The purpose of basic allowance for quarters
(BAQ) is to help members pay the cost of obtain-
ing suitable living quarters when government
quarters are unavailable or not assigned.
BAQ is divided into two categories: BAQ for
members without dependents and BAQ for
members with dependents. The rates payable vary
according to your grade.
If you live in government quarters, you forfeit
your BAQ in lieu of rent.
Variable Housing Allowance (VHA)
Variable housing allowance (VHA) is paid in
addition to BAQ to help members defray the cost
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