How Much Does an Army Person Make a Year?

Introduction

The U.S. Army is one of the largest employers in the world, with more than 1.4 million active-duty personnel and 826,000 reserve personnel serving around the globe. As such, the salaries for these service members vary depending on rank and years of service. In this article, we’ll take a look at how much an average U.S. Army person makes a year and explore the various components that make up their salary.

Analyzing Average Salaries of U.S. Army Personnel

According to the Department of Defense, the annual salary for an Army soldier with the rank of Private (E1) is $20,170. This is the base pay for all enlisted personnel who have completed basic training and have fewer than four months of service. However, additional pay is given based on rank and years of service.

Officers, which include commissioned officers and warrant officers, receive higher salaries than enlisted personnel. The annual salary for a second lieutenant (O1) with less than two years of service is $35,817. Officers are also eligible for additional pay based on rank and years of service.

Breaking Down the Yearly Earnings of a Typical Army Soldier

In addition to base pay, there are several other factors that can influence an Army soldier’s total earnings. These include special pays, allowances, and bonuses.

Basic Pay

As mentioned above, basic pay is the starting point for determining an Army soldier’s annual salary. This includes both base pay and additional pay based on rank and years of service. Base pay for enlisted personnel ranges from $20,170 for a private (E1) with less than four months of service to $50,307 for a sergeant major (E9) with more than 20 years of service. For officers, the base pay ranges from $35,817 for a second lieutenant (O1) with less than two years of service to $150,092 for a general (O10) with more than 30 years of service.

Special Pays

Special pays are additional payments that are given for certain types of duties or conditions. These include hazardous duty pay, flight pay, dive pay, Foreign Language Proficiency Pay, and more. The amount of each type of special pay varies depending on the type of duty and the length of time in that duty.

Allowances

Allowances are payments that are given to cover the costs of food, housing, clothing, and other related expenses. These allowances vary depending on rank, location, and family status. For example, an enlisted soldier with dependents stationed in the continental United States will receive a Basic Allowance for Housing (BAH) of $1,566 per month.

Bonuses

Military bonuses are additional payments that are given to soldiers for certain actions or achievements. These bonuses can range from $2,000 for re-enlistment to $8,000 for completing a Special Duty Assignment Pay (SDAP). Bonuses can also be given for recruiting new members into the military.

Tax Implications for Army Salaries

All Army salaries are subject to federal and state taxes. Federal taxes are deducted from an Army soldier’s paycheck before it is issued. State taxes can also be deducted depending on where the soldier is stationed. Some states do not charge income tax, while others may charge up to 8%.

Examining How Military Bonuses Impact Army Income

Military bonuses can have a significant impact on an Army soldier’s total earnings. Bonuses are typically paid out in lump sums, so they can provide a substantial boost to a soldier’s annual income. Common bonuses include the following:

Re-enlistment Bonus

This bonus is given to soldiers who choose to extend their enlistment by an additional term. The amount of the bonus varies depending on the length of the extension and the soldier’s rank. This bonus can be up to $20,000 for a six-year extension.

Special Duty Assignment Pay (SDAP)

This bonus is given to soldiers who are assigned to a special duty assignment. The amount of the bonus varies depending on the type of assignment and the soldier’s rank. This bonus can be up to $8,000 for a six-month assignment.

Recruiting Bonus

This bonus is given to soldiers who recruit new members into the military. The amount of the bonus varies depending on the number of recruits and the soldier’s rank. This bonus can be up to $1,000 for recruiting five new members.

Exploring Benefits and Allowances in Addition to Base Pay

In addition to their base pay and any special pays or bonuses they may receive, Army personnel are also eligible for several benefits and allowances. These include health insurance, food and housing allowances, and education benefits.

Health Insurance

All Army personnel are eligible for medical and dental coverage through the TRICARE program. This program provides comprehensive coverage for all medical and dental services, including doctor visits, hospital stays, and prescription drugs. The cost of this coverage is fully covered by the government.

Food and Housing Allowances

Army personnel are eligible for a Basic Allowance for Subsistence (BAS) to cover the cost of food. This allowance is based on rank and family status and can range from $383.67 per month for an E1 without dependents to $1,010.21 per month for an E9 with dependents. Additionally, all personnel are eligible for a Basic Allowance for Housing (BAH) to cover the cost of housing. The amount of this allowance varies depending on rank, location, and family status.

Education Benefits

Army personnel are eligible for a variety of educational benefits, including the Montgomery GI Bill and the Post-9/11 GI Bill. These programs provide financial assistance for college tuition and other educational expenses. Additionally, the Army also offers tuition assistance to help cover the cost of college courses taken while on active duty.

Investigating Differences in Pay Based on Rank and Years of Service

The amount of pay an Army soldier receives depends on their rank and years of service. Enlisted personnel are divided into nine ranks, ranging from private (E1) to sergeant major (E9). Officers are divided into 10 ranks, ranging from second lieutenant (O1) to general (O10). Both officers and enlisted personnel are eligible for additional pay based on rank and years of service.

Officer Salaries

Officers receive higher salaries than enlisted personnel. The annual salary for a second lieutenant (O1) with less than two years of service is $35,817. This increases to $150,092 for a general (O10) with more than 30 years of service. In addition to base pay, officers are also eligible for additional pay based on rank and years of service.

Enlisted Salaries

Enlisted personnel receive lower salaries than officers. The annual salary for a private (E1) with less than four months of service is $20,170. This increases to $50,307 for a sergeant major (E9) with more than 20 years of service. In addition to base pay, enlisted personnel are also eligible for additional pay based on rank and years of service.

Conclusion

The amount of money an Army soldier earns in a year varies depending on rank and years of service. Base pay is the starting point for determining an Army soldier’s annual salary, but additional pay, bonuses, and allowances can significantly increase their total earnings. Tax implications, health insurance, and education benefits are also important considerations when calculating an Army soldier’s total income.

Summary of Findings

The yearly salary for an Army soldier can range from $20,170 for a private (E1) with less than four months of service to $150,092 for a general (O10) with more than 30 years of service. Additional pay, bonuses, and allowances can significantly increase an Army soldier’s total earnings. All Army salaries are subject to federal and state taxes, and soldiers are also eligible for health insurance and education benefits.

Final Thoughts

Serving in the Army is a noble and rewarding profession, and the salaries for Army personnel are reflective of the dedication and sacrifice of those who serve. With a variety of pay, bonuses, and benefits available, the Army provides a stable and secure career path for those who choose to serve.