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FY 2002 and FY 2003 Military Pay
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Fiscal Year 2003 Rates

Note: Military budgets operate off of the "fiscal year," which runs from 1 October to 30 September. For example, Fiscal Year 2003 is from 1 October 2002 to 30 September 2003.

However, that does not mean that military pay changes occur at that time.

Due to the wording that Congress uses in the annual Military Appropriations Act, and the Military Authorization Act, most military pay increases do not begin until the beginning of the calendar year (i.e., January 1st).

The Military Appropriations Act, and the Military Authorization Act must be passed by Congress and signed into law by the President each year, before it can be implemented by the Department of Defense.

The Military Appropriations Act reserves (allocates) money for the Department of Defense. The Military Authorization Act tells DOD how to spend the money. Both acts must be passed and signed into law before DOD can implement them.

Because the military operates on a Fiscal Year, this *should* be accomplished by October 1st. However, Congress has a lousy track-record on getting this done on time. Usually, they are late, and pass a "continuing resolution" which allows the military to operate at the last year's funding level until the act is passed. Last year (FY 2002), the President didn't sign the Military Authorization Act into law until December 27, (just a few days before most of the raises were scheduled to take effect).

This year, Congress passed the Defense Appropriations Act, and it was signed into law by the President on 23 October 2002. Congress has also passed the Defense Authorization Act, and the President signed it into law on December 2, 2002. See Your 2003 Military Pay and Benefits for detailed information about FY 2003 pay and benefit changes.

FY 2003 Base Pay
All Military members receive a "base pay," based upon their rank and years of military service. The FY 2003 pay raise includes a minimum raise of 4.1 percent for all military personnel, with a higher-percentage (targeted) raise (up to 9.5 percent) for some (mostly mid-level officers and mid-level to senior level-NCOs). The new base pay is effective on 1 January 2003.

Housing Allowance (BAH)
When a servicemember is authorized to reside off-base at government expense, DOD pays a housing allowance, called "Basic Allowance for Housing" (BAH). In 2003, BAH has increased by an overall average of 8 percent over 2002 rates. BAH is dependent on rank, location of assignment, and whether or not the servicemember has any dependents. The new BAH rates are effective on 1 January 2003.

Food Allowance
Basic Allowance for Substinance (BAS) is a monthly monetary food allowance for military members when it is impractical to consume "free" government meals in the dining facility (chow hall). By law, officers and enlisted in the rank of E-7 and above are automatically entitled to BAS. Other enlisted members are usually entitled to BAS if living off-base (at government expense), or in on-base family housing, or if their military duties preclude them from eating in the dining facilities.

Annual Salary
These charts show average annual military salary for commissioned officers, warrant officers, and enlisted members, to include base pay, average housing allowance, monetary food allowance, and the tax advantage of untaxed allowances.

Retirement Pay
These charts show the monthly retirement pay for active duty enlisted members, warrant officers, and commissioned officers who retire during 1993. Military personnel can retire after 20 years of active duty service.

Guard and Reserve Drill Pay
Most members of the National Guard and Reserves are "part-time." They only receive "part-time" pay, called Drill Pay.

Clothing Allowance
Clothing (Uniform) Allowances are monetary allowances for the replacement and maintenance of military uniforms. These new rates are effective on October 1, 2002.

FY 2003 TDY Per Diem Rates
Military personnel performing temporary duty, away from their home station receive reimbursement for lodging and meals in accordance with the per diem rate charts. These rates are effective on October 1, 2002.

PCS/TDY Mileage Travel Rates
Military members who travel on official duty (either temporary duty travel, or permament change of station), can request a mileage reimbursement for their travel by "personally owned conveyance" (POC), in lieu of a government purchased airline ticket.

Misc. Permament Change of Station (PCS) Entitlements
There are several monetary benefits that a military member receives when they make a PCS move.

Enlistment & Reenlistment Bonuses
Individuals who agree to enlist in certain, designated jobs may be eligible for a monetary enlistment bonus. Enlisted members who reenlist in some jobs may be entitled to a monetary bonus. These rates are currently in effect, but are often changed, without notice, based upon the current needs of the particular military service.

Submarine Duty Pay
Military personnel (mostly Navy) who perform operational submarine duty. These rates are effective on 1 October 2002.

Sea Pay
Military personnel assigned to duty at sea are authorized a special monthly pay. Here are the charts for Career Sea Pay for fiscal year 2003.

Guard/Reserve Housing Allowance
Guard and Reserve members on active duty for less than 140 days receive a different type of housing allowance than active duty members.

Combat Zone
A member assigned to or deployed to a combat zone receives "combat pay" at the rate of $150.00 per month. Being assigned to or working in a combat zone triggers also triggers a tax advantage.

Family Separation Allowance
Family Separation Allowance (FSA) is payable only to members with dependents. Basically, family separation allowance is payable when a military member is forced to be away from his/her dependents for longer than 30 days, due to military orders.

Dislocation Allowance
You may be entitled to a dislocation allowance (DLA) when relocating your household due to a PCS. However, keep in mind that DLA is intended to partially reimburse relocation expenses not otherwise reimbursed and probably will not reimburse all of your relocation expenses.

FY2002 Rates

Base Pay

Housing (BAH)

BAH Differential

BAH Overview

Food Allowance

Annual Compensation (Salary)

Estimated Retirement Pay

Guard/Reserve Base Pay

Guard/Reserve Housing Allowance

Clothing Allowance

Hazardous Duty Incentive Pay (Jump pay, flight deck duty pay, EOD pay, ect.)

Career Sea Pay

Flight Pay

Hardship Duty Pay

Dislocation Allowance (DLA)


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