MILITARY COMPENSATION: ARMY BENEFITS
IT’S MORE THAN JUST A SALARY
The Congressional Budget Office recently estimated that the average active duty service member receives an Army benefits and pay compensation package worth $99,000. Noncash compensation represents almost 60 percent of this package. Noncash compensation includes health care, retirement pay, child care and free or subsidized food, housing and education. Coupled with regular cash compensation, this adds up to attractive military compensation for Soldiers.
CIVILIAN/ARMY COMPENSATION COMPARISON
Compare and contrast the total compensation and expenses for civilians and U.S. Army Soldiers.
| Enlisted Soldier | Civilian Job
Police Patrol Officer | Army Job*
Military Police Sergeant |
|---|---|---|
| Salary | $49,953**
| $29,380
|
| Housing | 0
| $16,164
|
| Food Allowance | 0
| $3,900
|
| Special Pay | 0
| $1,800
|
| Tax Advantages | 0
| $2,716***
|
| Health Care | - $13,100****
| Included
|
| Net Income | $36,368
| $53,960
|
*Salary and allowances based on 2010 national averages from http://militarypay.defense.gov — Sample based on a Sergeant (E5) with 4 years service with family size of four. Figures do not include bonuses.
**Civilian salary based on national averages. Source: Salary Wizard® at Salary.com.
***Tax advantages are an often unseen and overlooked aspect of military pay. Most allowances are tax-exempt.
****Health-care costs based on a report by the National Coalition on Health Care for a family of four.
| Officer | Civilian Job
Telecommunications Engineer II | Army Job*
Signal Corps Officer |
|---|---|---|
| Salary | $67,578**
| $52,189
|
| Housing | 0
| $17,844
|
| Food Allowance | 0
| $2,686
|
| Special Pay | 0
| $1,800
|
| Tax Advantages | 0
| $3,623***
|
| Health Care | - $13,100****
| Included
|
| Net Income | $54,478
| $78,142
|
*Salary and allowances based on 2010 national averages from http://militarypay.defense.gov - Sample based on a Lieutenant (O2) with 4 years service with family size of four. Figures do not include bonuses.
**Civilian salary based on national averages. Source: Salary Wizard® at Salary.com.
***Tax advantages are an often unseen and overlooked aspect of military pay. Most allowances are tax-exempt.
****Health-care costs based on a report by the National Coalition on Health Care for a family of four.
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