Guide to Salary Tools for Military Employment

Military salaries are determined by the U.S. Secretary of Defense and broken down into a few basic types: Basic Pay, Basic Allowance for Subsistence and Basic Allowance for Housing. Tax advantages come into play when determining military pay, and some military personnel also receive special compensation for hardship or dangerous duties.

If you are considering a career in the military, just what should you expect for an Army salary or other branch of military pay? Obviously, the military salary for a newly enlisted guard will be significantly less than a seasoned officer. Various salary tools for military employment exist to help you determine military compensation, including:

1. A military salary calculator breaks down military pay into monthly and annual payments.

2. Salary tools compare military salaries to compensation for similar civilian positions.

3. Comparisons of military benefits, including retirement plans, healthcare options and more allow military to know where they rank in terms of military pay.

Action Steps
The best contacts and resources to help you get it done

Use salary tools for military employment to breakdown pay

Because military salaries are determined and developed differently than career compensation scales for civilians, they can be difficult to understand. Use salary tools for military employment to help you determine your monthly and annual bottom line.

I recommend: The Office of the Secretary of Defense has a military salary calculator to help you decipher 2008 military pay (or the current year) as it equates to a civilian salary (monthly and yearly). PayScale shows several military pay scale charts based on job title, years of experience and location.

Compare military pay to that of similar civilian positions

Military pay has always slightly lagged behind civilian salaries for similar positions, but the government typically approves annual pay increases for all to attempt to close that gap. While it would be impossible to find a civilian equivalent to all military positions, there are resources online that can provide a general comparative overview.

I recommend: Take a look at the military pay chart on Today’s Military to compare the military salary versus civilian salary for a variety of positions. You can also get a free Custom Salary Comparison for more detailed military pay information.

Factor in benefits when evaluating military salaries

A military salary is just the tip of the iceberg when it comes to a compensation package. You should also consider benefits such as medical and dental insurance, vacation time, retirement plans and more. Keep all benefits in mind when evaluating a military salary.

I recommend: Check out the handy chart at the Office of the Secretary of Defense for a breakdown of benefits for military service members. Military.com breaks down the three main coverage options for healthcare.

Tips & Tactics
Helpful advice for making the most of this Guide

• Annual military pay raises are determined by the Employment Cost Index, or ECI, which measures salaries of jobs in the private sector. The National Defense Authorization Act determined that annual raises for the military would be equal to the ECI from 2006 on. This helps military salaries stay competitive.

The official source of Salary Tools for Military Employment is
the Salary Tools for Military Employment page at Business.com