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Updated December 5, 2023
Defense Primer: Regular Military Compensation
Congress sets compensation levels for members of the
States, this allowance is known as Basic Allowance for
Armed Forces through statutory authorizations and
Housing (BAH).
appropriations. When people talk about military pay, they
are often only referring to “basic pay.” Although basic pay
The amount of BAH a servicemember receives is based on
is normally the largest component of cash compensation
three factors: paygrade (rank), geographic location, and
that a servicemember receives, there are other types of
whether the servicemember has dependents. Paygrade and
military pay, allowances, and tax benefits that add
dependency status are used to determine the type of
significantly to it. Regular Military Compensation (RMC)
accommodation—or “housing profile”—that would be
is a statutorily defined measure of the cash or in-kind
appropriate for the servicemember (for example, one-
compensation elements which all servicemembers receive
bedroom apartment, two-bedroom townhouse, or three-
every payday. It is widely used as a basic measure of
bedroom single family home). Geographic location is used
military cash compensation levels and for comparisons with
to determine the average costs associated with each of these
civilian salary levels.
housing profiles in a given locality. The median costs of
these housing profiles are the basis for BAH rates, with
some additional adjustments made on the basis of paygrade
For 2023, a mid-grade enlisted servicemember (E-5)
(that is, an E-7 without dependents will receive more than
received an annual average of $41,171 in basic pay, but
an E-6 without dependents, even though the appropriate
an average of $76,290 in RMC.
housing profile for both of them is “two bedroom
apartment”). As a result of this methodology, BAH rates are
Regular Military Compensation (RMC)
much higher in some areas than others. The intention is that
RMC, as defined in law, is “the
servicemembers of similar paygrade and dependency status
total of the following
are able to pay for roughly comparable housing regardless
elements that a member of the uniformed services accrues
of their duty location. Table 1 provides illustrative
or receives, directly or indirectly, in cash or in kind every
examples of annual BAH.
payday: basic pay, basic allowance for housing, basic
allowance for subsistence, and Federal tax advantage
Basic Allowance for Subsistence
accruing to the aforementioned allowances because they are
Nearly all servicemembers receive a monthly payment to
not subject to Federal income tax.” (37 U.S.C. §101(25))
defray their personal food costs, known as Basic Allowance
Military compensation is structured much differently than
for Subsistence (BAS). This allowance is provided at a flat
civilian compensation, making comparison difficult. RMC
rate. In 2023, enlisted personnel received $452.56 a month
provides a more complete understanding of the cash
in BAS, while officers received $311.68 a month. Those
compensation provided to all servicemembers and therefore
who do not receive BAS—for example, enlisted personnel
is usually preferred over basic pay when comparing military
in basic training—receive government-provided meals.
with civilian compensation, analyzing the standards of
living of military personnel, or studying military
Federal Tax Advantage
compensation trends.
While the various types of military pay—basic pay, special
Basic Pay
pay, and incentive pay—are considered part of gross
For most servicemembers, basic pay is the largest element
income and are usually subject to federal income tax,
of the compensation they receive in their paycheck and
military allowances are generally not subject to federal
typically accounts for about 60% of an individual’s RMC.
income tax. The tax advantage generated by the exemption
All members of the Armed Forces receive basic pay,
of the housing and subsistence allowances from federal
although the amount varies by pay grade (rank) and years of
income tax is a part of RMC. Table 1 provides the
service (also called longevity). Table 1 provides illustrative
estimated tax advantage for the illustrative examples, but
examples of basic pay rates.
the precise value of the federal tax advantage for an
individual servicemember will vary depending on his or her
Basic Allowance for Housing
unique tax situation.
All servicemembers are entitled to either government-
provided housing or a housing allowance. About 33% of
Compensation Elements Not Included in RMC
servicemembers receive government-provided housing (in
Special pays and bonuses, travel reimbursements,
the form of barracks, dormitories, ship berthing, or
educational assistance, deferred compensation (i.e., an
government-owned family housing). The remainder receive
economic valuation of future retired pay and benefits), or
a housing allowance to offset the costs of renting or
any estimate of the cash value of non-monetary benefits
purchasing housing in the civilian economy, or for renting
such as health care, child care, recreational facilities,
privatized housing on-base. For those living in the United
commissaries, and exchanges are excluded from RMC. As
the value of these forms of compensation can be substantial,
https://crsreports.congress.gov
Defense Primer: Regular Military Compensation
RMC should not be considered a measure of total military
compensation.
Table 1. Average Regular Military Compensation for Selected Paygrades
2023 data; assumes al cash pay (e.g., BAH instead of government quarters)
Estimated
Average
Average
Average
Annual
Average
Annual
Annual
Federal
Average
Pay
Annual
Housing
Subsistence
Tax
Annual
Grade
Rank
Basic Pay
Allowance
Allowance
Advantage
RMC
E-1
Private (Army and Marine Corps)
$22,119
$17,894
$5,431
$3,197
$48,641
Seaman Recruit (Navy)
Airman Basic (Air Force)
Specialist 1 (Space Force)
E-5
Sergeant (Army and Marine Corps)
$41,171
$23,907
$5,431
$5,781
$76,290
Petty Officer Second Class (Navy)
Staff Sergeant (Air Force)
Sergeant (Space Force)
E-8
Master Sergeant or First Sergeant (Army
$73,152
$29,986
$5,431
$5,294
$113,862
and Marine Corps)
Senior Chief Petty Officer (Navy)
Senior Master Sergeant or First Sergeant
(Air Force)
Senior Master Sergeant (Space Force)
O-1
Second Lieutenant (Army, Marine Corps,
$46,733
$22,178
$3,740
$5,392
$78,042
Air Force, and Space Force)
Ensign (Navy)
O-4
Major (Army, Marine Corps, Air Force,
$104,259
$34,375
$3,740
$9,544
$151,918
and Space Force)
Lieutenant Commander (Navy)
O-6
Colonel (Army, Marine Corps, Air Force,
$154,237
$39,425
$3,740
$12,332
$209,734
and Space Force)
Captain (Navy)
Source: Department of Defense, Selected Military Compensation Tables, 1 January 2023, Table B3, “Detailed RMC Tables for Al Personnel”,
at https://militarypay.defense.gov/References/Greenbooks.aspx. Rates rounded to nearest dol ar; rows may not sum exactly due to rounding.
O-1 rates exclude officers with prior enlisted experience who qualify for the O-1E rate. Note that this publication computes the estimated
average annual federal tax advantage using the standard deduction and 2023 tax rates, including earned income tax credit. The actual annual tax
advantage of servicemembers wil vary based on their unique tax situation.
Relevant Statutes
Title 37, U.S. Code, Chapter 3—Basic Pay
Title 37, U.S. Code, Chapter 7—Al owances Other Than Travel
and Transportation Allowances
Other Resources
26 U.S.C. §134 (Exclusion of qualified military benefits from
Defense Finance and Accounting Service, 2023 Military Pay
gross income)
Chart
Defense Travel Management Office, BAH Lookup
DOD Financial Management Regulations, Volume 7A, Chapter
CRS Products
1 (Basic Pay), Chapter 25 (Subsistence Allowances), and
Chapter 26 (Housing Allowances).
CRS Report RL33446, Military Pay: Key Questions and Answers
Military Compensation Background Papers, 8th Edition
CRS Report R46983, Military Families and Financial Readiness
https://crsreports.congress.gov
Defense Primer: Regular Military Compensation
IF10532
Kristy N. Kamarck, Specialist in Military Manpower
Disclaimer
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