Jen13, First and foremost, I am all in favor of a pay increase for the military. I like the idea of $250k. But….
I think his average is actually a bit low. Often times many of us in the military do not accurately calculate our income.
For example. Lets take your average married E-5 with 8yr experience. Lets call him/her the average soldier (I am Army so please forgive me all you airman, sailors, and marines)
Now lets calculate his salary based on 3 different duty locations. 1) Wash, DC, 2) Ft. Hood, TX 3) Ft. Drum, NY; (Based on 2006 figures)
All pay calculated yearly
Basic Pay: $28,824.00
Allowances (Tax Free):
Subsistence: $3267
Clothing Allowance: $511
Basic Allowance for Housing (BAH): DC – $21,468; Hood – $11,064, Drum – $11,592
(Note on Housing: Soldiers only receive BAH if they are not assigned quarters on base. But those assigned housing on base get housing comparable to housing off base in the same price range (actually calculated on sqft). Additionally on post housing includes all utilities at no additional cost to the soldier)
Now lets look at included benefits:
Health insurance: $3,000 (free to the soldier and his/her family, AVG American pays this much for insurance for the family)
Commissary Privileges: $1,607. The AVG American spends $5,357yr on groceries. The AVG commissary customer saves 30%. 30% of 5357 = 1,607
Paid Vacation: 1) DC $2,677; 2) Hood $2,119; 3) Drum $2,148. The AVG American gets 13 paid vacation days a year. The military gets 30 days a year. This paid vacation includes payment for Basic Pay, BAH and Subsistence. 17 addition vacation days X daily pay = Extra Paid Vacation value
Tax Free Pay: 1) DC $2,677; 2) Hood $2,120 3) $2,148. Since a fair portion of the military pay is tax free, we must assess this benefit. Subsistence, BAH and Clothing Allowances are Tax Free. Normally these would be taxed at a rate of $755 plus 15% of all amounts over $7,550.
So now lets add all these numbers up by duty location (rounded to the nearest $)
Total Compensation
Wash, DC – $64,763
Ft. Hood, TX – 52,242
Ft. Drum, NY – $52,878
Now this does not include other benefits which certainly have a real world $$ amount attached to them such as:
1) No Sales tax for items purchased on post
2) Military Discounts offered by many retail businesses
3) Space Available Air flights: For less then $20 my family and I can fly from Wash, DC to Europe (or the any other place US military aircraft fly).
4) Free Gym access: AVG cost to join a civilian gym is $50/mo. Plus most military installation have 1st class gyms. Normally several.
5) Most importantly Guaranteed Pension upon 20yrs of service (immediately available upon retirement; approx. 50% of base pay of the highest rank achieved; plus 2.5% for every year over 20yrs service) (assume you retire after 20 year at the rank of E-8 pay would equal $34,302/yr). Imagine retiring at the age of 38 with a retirement pay higher than teacher's pay in 13 states. Show me a civilian job with a pension as nice as that!
6) Upon retirement FREE medical care for life!!!!! Try getting that some where else!