How much do soldiers get paid while deployed?

How much do soldiers get paid while deployed?

What do we know?

Deployment can be a complex and arduous process for military personnel, leaving behind families, careers, and other aspects of their personal life. In the United States, deployed soldiers can face significant financial and personal sacrifices. So, what does the US military pay their deployed soldiers, and is it enough?

Income while Deployed

Active-duty soldiers serving abroad earn a range of benefits while deployed, including pay and allowances. According to the US Department of Defense (DoD), pay while deployed includes:

• Basic Pay: Base pay is calculated as a monthly salary based on a soldier’s rank, experience, and length of service.
• Combat Pay: Additional pay awarded to deployed soldiers to offset the financial burdens of service during hostile or war-time.
• Family Separation Pay: Payment for service members separated from their dependents for at least 15 days while serving outside of the United States or certain areas.

Here is an example of base pay and combat pay rates for non-commissioned officers (NCOs) serving in the Army, Marines, and Navy:

Table: Military Pay (2022)

Keep in mind that these rates may fluctuate, and there might be variations across services or branches. Pay adjustments take effect with new military budgets and annual changes to DoD’s Base Allowances for Housing (BAH) and Total Personnel Strength (TPS) plans.

Allotment and Direct Deposit

Some deployed soldiers take advantage of allotments to divert part of their pay to save money for emergencies, save on everyday expenses, or assist in paying bills at home. Allotment funds are deducted directly from pay. Additionally, military members with direct deposit benefits enjoy efficient and timely transactions for personal and household finances.

Tax Considerations

Keep in mind that while deploying, military pay can attract additional taxes:

• Foreign Earned Income (FEI) Tax Exclusion: In general, only the first $85,951 in taxable income earned overseas in 2022 can exclude from taxation under Internal Revenue Code (IRC) Sec. 911 (h). Higher taxable incomes earned abroad will remain taxable at the standard Federal tax rates.
• Moral Waiver (Special Authority): Authorized exceptions and special permits to mitigate overseas tax liability; granted when extraordinary circumstances prevail.
• Dependents in the US (While Military Member Overseas): Claimable dependency allowance based on the member’s spouse or child (50% disablement) without serving near the front line; deducted from their allowance pay for the benefit’s financial requirements.

Per Diem Allowance and Cost of Living Allowance

Two primary allowances enhance living conditions abroad:

• Per Diem Allowance (BAS): Funds allotted for food and laundry during deployment. Payments fluctuate based on military occupational specialties, living areas, and time served overseas.

Example: Army (Navy, Air Force) Sergeant (Staff Sergeant):

• $53 Per Diem Daily for US Forces-Iraq Area I (US Central Command/US Forces-Iraq: $35 Daily).
• $23.90 Per Diem for US Forces-India Region (US Air Force-Bangladesh)

Cost of Living Allowance (COLA): Pay added to account for significantly altered living costs; applies specifically to non-battledress and battaledressed areas (based on an individual’s unit designation or duty assignment):

| Example COLA Amount | Annual |

| -$20 | $520.00 |
| -$12 | $312.00 |

Some special consideration is provided by certain Military Pay Provisions to better address cost variations (COA), the overall intent is to standardize adjustment for each unique unit/country and/or family scenario.

Comparison: Basic Pay, COLA, and Allowance Structure (2022)

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• Pay Ranks, Basic Pay: Table for Army, Marine Corps, Navy
• Combined Pay & COLA with Allowances

This arrangement helps balance salary structures amidst diverse regions (specific per diem adjustments to a base allowance with pay scale). Some COLAs offer more financial cushion or enhance living situations through per diem support or more targeted adjustments (compensation benefits).

Taxes Abroad and Allowances While Deployed

Pay packages, COLAs, allowances, and various foreign-exchange factors lead to multiple tax situations.

Keep these factors in mind: pay rates for both soldiers abroad and at home have changes, especially family leave provisions which now incorporate Special Indefinite Leave entitlement; soldiers can expect ongoing and adapting pay policies adjustments throughout 2022-2024 and in coming military budgets.

This financial update should serve as an illustration of what can influence changes in a serviceman or woman’s budget:

Example: Adjusting Allotted Pay: Changing Allocation Schedules to Combat Changing Exchange Rates or Fluctuations in Regional Tax Allowance Rates.

Adjustment options can occur if family obligations or housing change after your deployment (depending on time spent outside, dependant on location & deployment duties).

In general, each individual military officer must adhere to tax considerations regarding a foreign-exchanged (if applicable), overseas employment during deployment and post-retirement. Taxes overseas remain within the DoD Pay/Allowance/Budget; however, US individual returns may include (at certain thresholds) global reporting responsibilities.

In essence, active-duty military officers stationed while deployed may maintain stable cash flow from government-supported (DoD funded pay-allotments-collector deposits) funds that continue direct deposit of cash income received while overseas as in- country services become standard process.

Remember this basic calculation: The per capita per diem can divided into separate costs: food expenses from BAS Per Diem payments ($43.95 divided as *$3 from Laundry, $17 from Meals or others; note adjustments of per 60 meal days per allowance (Food) with optional COLAs**)

Take notice also of specific taxes & costs (food prices): if your soldier does it more often while deploying away

Key takeaways for soldiers on deployment

While deployed, pay may influence the cost of living depending on region or type. The government will account for this disparity via Combat Pay, COLAs, Allotment Pay Allowance, and specific special rules for each person.
Understand taxes from all resources (FEI), then use it all by tracking and controlling their allocated personal funds as long-term plan.
All deployments create complex financial implications as both at home and foreign bases operate with specific and adjustable fees.

It would also have been nice for all people to keep that they’ve got one-way cash on overseas purchases due to varying prices with food services and living necessities like: laundry.

Before Deployment Check: Keep accurate money to fund both bills and needs by doing extra research or making any smart financial plans!