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Therefore, you must always refer to the applicable
official publications to obtain the most current
information. Specific guidance for current rates and
conditions of entitlements can be found in the
Department of Defense Financial Management
Regulation (DODFMR), Military Pay, Policy, and
Procedures, volume 7, part A, DOD 7000.14-R NAVSO
P-6048.
MILITARY PAY SYSTEM
The present military pay system was not designed
as a whole. Instead, the military pay system has evolved
over the years in response to the needs of the military
community. The result is a complex network that
includes various special pays and allowances, plus other
pay elements created for specific groups or skills. The
legal term Regular Military Compensation (RMC) is
used to indicate military pay.
REGULAR MILITARY COMPENSATION
The RMC is a combination of basic pay, basic
allowance for quarters (BAQ), variable housing
allowance (VHA), overseas housing allowance (OHA),
basic allowance for subsistence (BAS), and the federal
tax advantage on the nontaxable allowances (BAQ,
VHA, OHA and BAS). The RMC of personnel not
receiving BAS and BAQ is based on in-kind values
(meals and quarters provided by the government).
Other entitlements such as special and incentive pays
and allowances, reenlistment bonuses, benefit
packages, and the present and future value of the
retirement system are an additive to the RMC.
BASIC PAY
The pay of service members is prescribed by law.
Members are entitled to receive pay according to their
paygrades and years of service if they are on active duty
in a pay status and not otherwise prohibited by law from
receiving such pay. Basic pay is the primary means of
compensating members of the uniformed services.
Except for certain periods of unauthorized absence,
excess leave, and confinement after an enlistment has
expired, every active duty member is entitled to basic
pay on a regular basis.
The rate of basic pay is
determined by a member’s paygrade and length of
service.
Personnel having the same paygrade and time in
service normally make more money than personnel in a
lower paygrade and with less time in service. So you
8-5
can see how paygrade and length of service are factors
consider in determining how much a person gets paid
The rates are also fixed so personnel will stop
receiving raises for increased length of service at certain
points in each paygrade. This provides an incentive for
service members to attain increased pay levels by
earning promotions. Refer to figure 8-5 which shows
you a sample pay chart.
Additional information concerning the computation
of pay is contained in part 1, chapter 2 of the DODFMR,
volume 7, part A. Also, you can refer to the Naval
Military Personnel Manual (MILPERSMAN),
NAVPERS 15560, Article 2610150, which discusses
computation of service for basic pay.
TAX ADVANTAGE
Formal tax advantage varies among individual
members and is dependent on such things as paygrade
and length of service, whether subsistence and quarters
are received in cash or in-kind, the amount of
subsistence and quarters allowances (including any
VHA or OHA), the number of member’s personal tax
exemptions, and the member’s marital and dependency
status.
To understand exactly what the tax advantage
covers, think of it like this: Basic pay is subject to
income tax; BAQ, VHA, OHA, and BAS are not. The
federal income tax advantage is a savings, rather than a
payment, to military members.
INCENTIVE PAY FOR HAZARDOUS
DUTY
Service members entitled to basic pay are also
entitled to incentive pay for performing certain specified
hazardous duties.
This is, of course, provided the
members are under competent orders and otherwise
meet the requirements specified in part 2, chapter 3 of
the DODFMR, volume 7, part A.
The hazardous duties members must perform to
receive incentive pay include the following:
l Parachute duty
. Flight deck duty
l Demolition duty
. Experimental stress duty
. Leprosarium duty
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