The rate of pay for the U.S. Military has gradually increased over recent years. There was a time when Military pay was quite a distance behind the private sector for comparable jobs. In the last few years, Cost of Living adjustments in pay have helped raise the Military pay level to a more comparable height, and to bring military pay more in line.
Each year cost of living increases are decided upon and declared for Military pay. These increases are based on the Price of Consumer goods, or Consumer Price Index. Some people get confused with Cost of Living Adjustments, and regularly scheduled pay rises for Service Members, but they are not the same. The Cost of Living (projected) for 2008 will be 2.3 percent. This is the rate for Social Security, retired; veteran disabilities, as well as reserved and active duty pay schedules. There is an exception for those retired service members who received a Career Status Bonus, that served after August 1981 and who retired before July of 2007, for those retirees the COLA is capped at about half. They will receive 1.3 percent COLA increase in 2007.
Military Pay and allowances can be confusing. There are over seventy different types of military pay, but the COLA increases affect all Military pay across the board. The COLA increases help keep military pay comparable to those jobs and positions found in the private sector. Federal Law provides that for jobs found in civilian life that Military pay should be at least one half percent above civilian workforce jobs.
Military Pay is also affected by a number of factors. Positive increases are granted because of a number of factors and situations, and they include:
Cost of Living increases.
Promotions in Rank and promotions to higher pay grade.
The yearly pay raise received.
Every two years the bump in pay normally received.
BAH adjustments – Basic allowance in pay for housing
BAS adjustments- Basic allowance in pay for food and other subsistence.
And lastly- Special Pay based on Military Occupation or Job held.
Military jobs can involve considerable risk, and because of this and other reasons, if you are in a job or designation that involved special or specific duty you may be eligible for Special duty pay. This can include Career sea pay, Aviation Career pay, Sea Duty pay, Flight pay, Foreign Language Pay, Submarine Pay, Hardship and Hazardous Duty Pay, Diving Duty Pay, and other specialized Duty pay types.