Hardship Duty Pay. Military members assigned to certain "hardship" assignment locations can receive Hardship Duty Pay, ranging from $50.00 to $700 per month. The governing directive is the Defense Pay Regulation, Volume 7A, Chapter 17.
Retirement Pay. Military members who serve for 20 or more years, and retire and receive a portion of their base pay each month for the rest of their lives. For details about military retirement pay, see Understanding Military Retirement Pay.
Reenlistment Bonuses. The purpose of a reenlistment bonus to to entice members to reenlist into jobs which are experiencing critical shortages. For reenlistment bonuses the Army will give up to $40,000. The Air Force and Navy will give up to $60,000, and the Marine Corps will offer up to $35,000.
In general, the greater the re-enlistment bonus, the harder time the service is having convincing people to re-enlist in this job. This is usually for one of two reasons:
- This same job pays extremely well in the civilian world, which entices many experienced people to get out and make more money.
- The job sucks.
All-in-all, it's best not to choose a job based upon enlistment/re-enlistment bonus amounts. Such money is spent fast, and is then gone. It's better to base your preferences based upon your personal interests. You'll be much happier in the long-run.
Taxes. In general, unless earned in a designated combat zone, all military *PAY* items are taxable. Military *allowances* (such as housing allowance [BAH], overseas housing allowance [OHA], family separation allowance [FSA], basic allowance for substinance [BAS]), are not taxable by either the Federal or State Governments. Different states have different rules for taxing military pay. The governing directive is the Defense Pay Regulation, Volume 7A, Chapter 44.
Continued in Part 6 - Housing, Housing Allowance, and Barracks
Other Parts to this Series:
- Part 1 -- Choosing a Military Service
- Part 2 -- Meeting the Recruiter
- Part 3 -- The Enlistment Process and Job Selection
- Part 4 -- Enlistment Contracts and Enlistment Incentives
- Part 6 -- Housing, Housing Allowance, and Barracks
- Part 7 -- Chow Halls and Food Allowance
- Part 8 -- Education Programs
- Part 9 -- Leave (Vacation), and Job Training
- Part 10 -- Assignments
- Part 11 -- Promotions
- Part 12 -- Military Medical Care
- Part 13 -- Commissaries and Exchanges
- Part 14 -- Morale, Welfare, & Recreation (MWR) Activities
