Military Workers, Officers

The U.S. Congress sets the pay scales for the military after hearing recommendations from the president. The pay for equivalent grades is the same in all services, whether in the Army, Navy, Marines, Air Force, or Coast Guard. In addition to basic pay, personnel who frequently and regularly participate in combat may earn hazardous duty pay. Other special allowances include special duty pay and foreign duty pay. Earnings for officers as well as enlisted personnel start relatively low but increase on a fairly regular basis as individuals advance in rank. When reviewing earnings, it is important to keep in mind that members of the military receive free housing, food, and health care—items that civilians typically pay for themselves.

Officers starting out at a grade of O-1, with less than two years of experience, received basic monthly pay of about $3,998 in 2025. This would make for an annual salary of approximately $47,976. An officer with the grade O-5 and more than four years of experience earned about $8,568.60 per month, or approximately $102,828 per year. An officer with the grade of O-7 and more than 20 years of experience had monthly basic earnings of about $16,202, or approximately $194,424 annually

Additional benefits for military personnel include uniform allowances, 30 days' paid vacation time per year, and the opportunity to retire after 20 years of service. Generally, those retiring will receive 40 percent of the average of the highest three years of their base pay. This amount rises incrementally, reaching 75 percent of the average of the highest three years of base pay after 30 years of service. All retirement provisions are subject to change, however, and you should verify them as well as current salary information before you enlist. Those who retire after 20 years of service are usually in their 40s and thus have plenty of time, as well as an accumulation of skills, with which to start a second career.