Military Pay and Benefits
A commonly-held assumption among the general public is that military service is a poorly-paid profession. This is patently false--the compensation you will receive for your work is in fact quite good. As a Second Lieutenant, you will earn an average of $44,200 per year (basic pay and allowances, click here to see How this Figure was Calculated [Grade: O-1, Years of Service: 1, Allowances: Continental US average]). This is already comparable (if not superior) to what the vast majority of your peers will earn in their first jobs out of college. The difference? While they sit in cubicles and file papers, you will be leading Marines, spearheading the defense of our nation.
Would you prefer THIS...
... or THIS?
However, it is important to remember your pay is not your sole means of compensation--as a Marine officer, you will receive many benefits which do not show up on your W-2. In order to see the financial rewards of military service, you must first understand the various aspects of your pay and allowances--it is the mission of this page to educate you about these aspects.
Aspects of Military Pay
- Base Pay: For most officers, this is your only source of taxable income--as is stated above, the income you receive from allowances is untaxed. This is also the majority of your salary. It is figured by your rank and the amount of years of service you have. Use the following link to view Current Military Pay Tables--when consulting the tables, your rank will be O-1. A major benefit to the PLC program is PLC candidates earn time in service while they are still going to school--each year remaining after their first OCS session counts as time-in-service when their pay is computed. This could mean more than an extra $7000 per year when you start active duty--if you are considering joining the PLC program, it is beneficial to join sooner rather than later. Nevertheless, as you can see from the pay tables, even officers who go to OCS after graduating college will earn comfortable salaries.
- Annual Salary: This calculator computes average annual military salary for commissioned officers, warrant officers, and enlisted members, to include base pay, average housing allowance, food allowance, and the tax advantage of untaxed allowances (remember, your rank is O-1 for the purposes of this calculation) This is the total monetary value of the base pay and allowances for a typical second lieutenant. However, this does not take into consideration the non-monetary benefits of military service--for example, your medical and dental insurance are fully funded while you are on active duty. Bearing these benefits in mind, the actual value of your military service is greater than the raw dollar figure this calculator provides.
- Basic Allowance for Housing (BAH): While on active duty, officers frequently live off-base whereas enlisted personnel frequently live in barracks or on-base housing. Because officers' housing is not provided by the government, the military grants a tax free allowance (BAH) to compensate officers living off-base. BAH varies based on location, rank and whether or not you have dependents. For example, Hyattsville, MD is considered within the Washington, DC metro area--therefore, lieutenants working in this office will rate DC's BAH. You have the option to accept BAH (and live off-base) or forgo BAH (and live in on-base housing). Below is a BAH chart for a single second lieutenant assigned to typical Marine duty stations within the United States:
| Location | BAH (per month) |
|---|---|
| Quantico, VA | $1,282 |
| Fort Sill, OK | $786 |
| Pensecola, FL | $1081 |
| Camp LeJeune, NC | $935 |
| MCAS Cherry Point, NC | $904 |
| Camp Pendleton, CA | $1,472 |
| MCAS Miramar, CA | $1,782 |
| Yuma, AZ | $885 |
| Washington, DC | $1,662 |
You will receive approximately an extra $100-$200 per month per advance in grade, and approximately an extra $200 per month if you have any dependents. Tables are available at the following links for personnel With Dependents or Without Dependents.
- Basic Allowance for Subsistence (BAS): The military provides this tax-free allowance to all officers, to compensate them for the food they purchase--currently, BAS is approximately $203 per month. This allowance is the same for all officers, and will not increase with your rank or time in service.
- Dislocation Allowance (DLA): As a Marine, you will be expected to move from duty station to duty station, approximately once every three years. With this in mind, DLA is a tax-free allowance designed to offset the cost of moving. Most officers rate DLA when they move to a permanent duty station. Normally, DLA is a one time payment ranging from around $1400 to approximately $2000.
Other Pay and Allowances:
Most officers will receive the entirety of their paycheck from some combination of the above four allowances. However, some officers will rate additional pay or allowances--for example, aviators and NFOs rate:
- Aviation Career Incentive Pay: This pay starts at flight school for all aviators and NFOs, starting at $125 per month and building throughout your career to a maximum of $840 per month.
- In addition, aviators rate bonus pay once their initial obligation is complete. These bonuses can approach an additional $30,000 per year.
Additional Benefits
The financial benefits of military service extend beyond your paycheck--there are many additional unpaid benefits available to service personnel, including free medical/dental insurance, tuition assistance, paid vacations, and many more. Click here for an in-depth examination of military benefits.
