Allowances
Allowances
Allowances are disbursements of money provided for specific needs such as food, housing, and clothing. Most allowances are not taxable — they are an additional benefit of military pay. With very few exceptions, all pay and allowances are deposited into the service member’s chosen financial account via electronic funds transfer.
The Department of Defense Financial Management Regulation Volume 7A, Military Pay and Procedures – Active Duty and Reserve Pay, contains all policy guidance on military pay and allowances.
Click on a link below to learn more about allowances for which you may be eligible.
Basic Allowance for Subsistence
Family Subsistence Supplemental Allowance
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Basic Allowance for Subsistence
The Basic Allowance for Subsistence (BAS) provides a partial subsidy for the cost of food and is generally paid only when a service member serves on active duty. In fiscal year (FY) 2002, Congress mandated automatic increases in BAS annually based on the inflation rate as measured by the Department of Agriculture’s Food Cost Index. For FY 2004, BAS has increased 4.8 percent. See FY 2004 BAS Charts. Subsistence allowances are not taxable.
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Basic Allowance for Housing
The Basic Allowance for Housing (BAH) provides partial compensation for the cost of housing while a member serves on active duty. In calendar year 2003, service members living “on the economy� were paying an average of 7.5 percent of housing costs out-of-pocket. That percentage dropped to 3.5 in fiscal 2004 and will be eliminated in FY 2005. The new BAH rates took effect on 1 January 2004. See FY 2004 BAH Charts.
If you are serving on active duty for less than 139 days (and not in support of a contingency operation) you may receive a housing allowance — called BAH-II — at a rate based only on your rank and dependent status. Service members performing Inactive Duty Training are not entitled to a housing allowance.
Housing allowances are not taxable.
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Clothing Allowances
Enlisted personnel are furnished with clothing and uniforms as prescribed by the Secretary of Defense. In certain cases, cash allowances are provided. Generally, service members are issued a standard wardrobe when they enter active duty and a clothing
replacement allowance on their anniversary month. The replacement allowance is paid at the “basic� rate for members with less than 3 years of service, and after that at the “standard� rate. Three types of clothing allowances cover both initial allowances and replacements:
- Initial Clothing Allowances
- Cash Clothing Replacement Allowances
- Supplementary Clothing Allowances (as authorized by services)
Officers receive a one-time payment after commissioning to buy clothing. No allowance for clothing maintenance is provided. Visit the military.com Web site for more information on clothing allowances.
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Family Subsistence Supplemental Allowance
When National Guard and Reserve members are called to active duty, they become eligible for the Family Subsistence Supplemental Allowance (FSSA). This program offers additional cash subsistence of up to $500 a month for large military families or households. Also, as of 15 April 2004, some 20,000 service members who were involuntarily extended beyond their expected 12 months of duty in Iraq or Kuwait became eligible for extra pay of $1,000 a month. This included the members of 21 Army National Guard units. Click here for details about FSSA.
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Family Separation Allowance
A Family Separation Allowance (Type II) is payable any time a military member is separated from his/her dependents for longer than 30 days for military reasons. Congress temporarily increased the allowance from $100 to $250 per month. The FY 2004 Military Authorization Act, Section 606, continues this increased amount until 31 December 2004.