Military compensation is a complicated system with many facets that affect how much a servicemember earns. To best understand what you'll make, it helps to know that the most important components of compensation in the Military are pay and allowances. Take some time to familiarize yourself with the various types of pay and allowances available to Service personnel.
Official Department of Defense compensation estimator
Pay
Basic pay is received by all and is the main component of an individual's salary. It is the same at each pay grade across all of the services branches. A member's grade (usually the same as rank) and years of service determines the amount of basic pay received.
Special pays are for specific qualifications or events. For example, there are special pays for aviators and parachutists; special pays are also paid for dangerous or hardship duties. Additional pays may be awarded to servicemembers with foreign language fluency or other career skills deemed necessary at a given time.
Allowances
The second most important element of military compensation is allowances, which are monies provided for specific needs, such as food or housing.
Monetary allowances are provided when the government does not provide for that specific need. For example, military members and their families who live in government housing do not receive full housing allowances. On the other hand, those who do not live in government housing receive a Basic Allowance for Housing (BAH) to assist them in obtaining commercial housing.
The BAH amount varies based on the cost of living in the area to which a servicemember is assigned. Basic Allowance for Subsistence (BAS), which offsets the cost of a servicemember's meals, is another common allowance. A majority of the force receives both of these allowances, and, in many cases, these allowances comprise a significant portion of the member's total pay. Most allowances are not taxable, which is an additional imbedded benefit of military pay.
More about Basic Allowance for Housing
More about Basic Allowance for Subsistence
More about Military Tax Advantages



