Military Benefits for New Recruits
When new recruits enlist in the U.S. military, they are offered basic pay and a set of benefits, including healthcare, money for college, and other incentives. What should newcomers to the military expect from these benefits?
Basic Pay and Allowances
Basic pay is the foundation. The amount of your basic pay is determined by rank and time in service. While it may start relatively low for recruits, it increases steadily with promotions and years of service. New recruits begin getting paid on day one of Basic Training.
In addition to base pay, service members receive allowances to cover specific expenses. The Basic Allowance for Housing (BAH) is offered to offset living expenses, but at press time, it is not designed to pay for everything.
Military members may qualify for BAH whether living on base or in the surrounding community. BAH rates vary based on location, rank, and dependency status. Another military benefit, the Basic Allowance for Subsistence (BAS) is designed to cover the cost of food. Like BAH, it’s not meant to offset the entire cost, but it does help.
Depending on the military job specialty, location, or specific skills, recruits may be eligible for special pay once they leave the training environment and begin full-time duty. Depending on circumstances, special pay, such as enlistment bonuses and money for joining an understaffed career field, can further raise your paycheck.
Once on active duty, there are plenty of special pay options for those who qualify. Special Duty Assignment Pay (SDAP) recognizes service in demanding or challenging assignments. Hazardous Duty Pay compensates service members for performing duties that involve a high degree of risk.
Paid Leave
All military members on active duty accrue leave each month for a maximum of 30 days off with pay per year. Excess leave balances can be carried over to the following year as long as those balances do not enter “use or lose” status.
Healthcare
Another benefit of military service is access to comprehensive healthcare through TRICARE.
TRICARE provides medical coverage for active duty service members, retirees, and their families. It offers a variety of health plans to choose from, with different levels of coverage and out-of-pocket costs. TRICARE benefits include:
- Healthcare for active duty service members. Troops typically receive medical care through TRICARE Prime, ensuring access to necessary treatment and preventive care.
- The military also provides dental care for recruits, covering routine checkups, cleanings, and necessary procedures.
- Dependents of active duty service members are eligible for TRICARE coverage, allowing them to access affordable healthcare.
Military Education Benefits
Military Tuition Assistance is offered to provide financial assistance for service members going to college on active duty.
This benefit is designed to extend GI Bill benefits. The GI Bill allows veterans to use their military service to pay for college, vocational training, or other educational programs after they leave the military.
Each branch of the military offers some form of a Student Loan Repayment Program: This program helps recruits repay their student loans while serving on active duty. You may also qualify to have your military experience translate into college credits.
Other benefits include on-the-job training, leadership training, and professional military development courses, which may also translate into college credit.
Tax Breaks and Financial Services for Military Members
Military members enjoy certain tax benefits, including deductions for moving expenses and tax-free allowances. Those serving in qualifying hostile fire zones may be eligible for tax-free income while serving in those areas, and allowances like BAH and BAS are non-taxable.
You may qualify for free tax assistance when it’s time to file, and the military provides free financial counseling services to help recruits manage their finances, budget effectively, and plan for the future.
Life Insurance
Military OneSource notes that military members are “automatically signed up” for low-cost Servicemembers’ Group Life Insurance, receiving low-cost coverage to service members for up to $500,000.
Military Retirement Benefits
The military offers retirement pay options for those who make a career out of the service.
Blended Retirement System (BRS) combines a defined benefit pension with a defined contribution Thrift Savings Plan (TSP), providing a flexible retirement plan for service members.
After 20 years of service, military members are eligible for a monthly pension, providing a steady income stream in retirement. The Thrift Savings Plan allows service members to contribute a portion of their pay to a tax-deferred account, with the government matching a certain percentage of contributions.
The U.S. military offers recruits a robust package of benefits designed to provide financial security, educational opportunities, healthcare, and various other benefits. The benefits offered are typically subject to change depending on legislation, funding, mission requirements, and other variables. Speak to a recruiter about the current options before committing based on benefits information you have found online.
About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
