This is a common question that many people considering a career in the military ask. The answer depends on several factors, including rank, time in service, location, and benefits. In this article, we’ll break down military pay scales, benefits, and other financial considerations to help determine if soldiers really make good money.
Military Pay Scales
The U.S. military has clearly defined pay scales that increase with higher rank and time in service. Ranks are broken down into three main categories:
- Enlisted (E-1 to E-9)
- Warrant Officers (W-1 to W-5)
- Officers (O-1 to O-10)
Enlisted service members make up the bulk of the military’s ranks. They perform specialty jobs related to combat operations, maintenance, logistics, and more. Warrant officers are technical experts in certain military occupational specialties. Officers are managers who lead enlisted personnel and provide strategy and guidance.
Within each rank, pay also increases steadily the longer someone serves. For example, an E-5 with 2 years of service makes less than an E-5 with 4 years of service. Annual raises and cost of living adjustments also regularly boost military pay.
To give a general idea of military pay scales, here are the approximate base salaries for common ranks among new recruits with less than 2 years of service:
| Rank | Annual Base Pay |
|---|---|
| E-1 (Private) | $20,000 |
| E-2 (Private) | $22,000 |
| E-3 (Private First Class) | $25,000 |
| E-4 (Corporal) | $27,000 |
| O-1 (Second Lieutenant) | $38,000 |
And here are examples of base pay for senior enlisted troops and officers with 8+ years of service:
| Rank | Annual Base Pay |
|---|---|
| E-7 (Sergeant) | $50,000 |
| E-8 (Master Sergeant) | $60,000 |
| O-4 (Major) | $75,000 |
| O-6 (Colonel) | $115,000 |
These figures represent base pay only. With allowances, bonuses, and tax benefits, total compensation can be tens of thousands more per year.
Allowances & Bonuses
Military members receive variety of allowances and bonuses on top of base pay:
- Housing allowances: Enlisted troops who live off-base get a monthly allowance for housing based on local rental markets.
- Subsistence allowances: All enlisted troops get extra pay to offset food costs.
- Combat pay: Troops deployed to combat zones get an additional $225-$1000 per month.
- Flight pay: Pilots and aircrew get an extra $150-$250 for flight duties.
- Reenlistment bonuses: Bonuses are paid to troops who reenlist, often $10,000-$30,000 or more.
When factoring in the median housing allowance, the base pay figures above could potentially increase by $15,000-$20,000 per year for enlisted troops. Officers receive somewhat smaller housing stipends.
Tax Benefits
Some key tax benefits also enhance soldiers’ take-home pay:
- Tax-free allowances: Housing, subsistence, and combat pay allowances are not subject to federal income tax.
- VA home loans: No down payment is required, and veterans are exempt from certain financing fees.
- GI Bill: Provides up to 36 months of tax-free education benefits after service.
- VA healthcare: Free or low-cost medical, dental, and mental healthcare for veterans.
Altogether, military pay, allowances, bonuses, and tax perks can potentially boost soldiers’ annual compensation by tens of thousands over base pay alone.
Benefits
In addition to taxable compensation, military personnel receive robust benefits packages including:
- Healthcare: Free medical, dental and mental health services for troops and reduced-cost coverage for family.
- Retirement: Defined pension plan vesting after 20 years of service.
- Life insurance: Low-cost term life insurance equal to base pay.
- Educational assistance: Up to $80,000 GI Bill benefit plus tuition assistance while serving.
- 30 days paid vacation per year: Plus 10 federal holidays.
- Tax-free shopping: At commissaries and exchanges with discounts up to 30% off.
The military also offers world travel opportunities and training in advanced technical skills that transfer to high-paying civilian careers after service.
Considerations by Branch
While the core pay and benefits packages are similar across the Army, Navy, Air Force, Marines, Coast Guard, and Space Force, there are some key differences:
Army & Marines
- Physical combat jobs with higher injury risks.
- Frequent deployments and family separations.
- Opportunities to earn high combat pay.
- Physically demanding roles even during peacetime service.
Navy & Coast Guard
- assignments onboard ships with months-long deployments.
- Opportunities for sea pay, flight pay, and other special incentives.
- Technical training in highly-skilled roles like aviation, nuclear power, and healthcare.
Air Force & Space Force
- Focus on aviation, space systems, intelligence, cybersecurity and other tech roles.
- Typically better quality of life at bases with more amenities.
- Technical training with transferable civilian career skills.
Within each branch, actual experience can vary significantly depending on specific job, duty station, deployments, and opportunities for promotion over a 20+ year career.
Conclusion
In summary, soldiers can make good money through a combination of base pay, allowances, bonuses, benefits and tax perks. However, actual compensation varies based on rank, time in service, job specialty and risk exposure.
While enlisted troops may start around $20,000 per year, they can retire at 20 years with lifelong pensions potentially worth over $1 million. Officers also earn six-figure salaries later in their careers.
Overall, military pay is modest at lower ranks but can eventually provide an upper middle-class lifestyle and secure retirement. The biggest tradeoff is accepting the hazards, frequent moves and family separations that are inherently part of military life.