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CBO Report – Assessing Pay and Benefits for Military Personnel

Assessing Pay and Benefits for Military Personnel, August 15, 2007: “Are members of the U.S. military paid enough? The answer depends in part on the measure used to assess military compensation. In terms of basic cash pay, enlisted personnel fall in the middle of the earnings distribution for civilian workers of similar ages and education levels. With the military’s cash allowances for food and housing included (as well as the tax advantage that service members receive because those allowances are tax-exempt), enlisted personnel earn more than at least 75 percent of comparable civilians, the Congressional Budget Office (CBO) estimates. Members of the military also receive more-extensive benefits than most civilian workers do. Those types of comparisons can give a sense of whether service members are being offered a competitive compensation package. But such comparisons are complicated by the fact that job conditions in the military are very different–and sometimes much more hazardous–than those in the civilian sector. Pay comparisons are more meaningful when viewed in the context of the military’s ability to recruit and retain an experienced, well-qualified force. Overall, the Department of Defense (DoD) has met its goals for recruiting and retaining active-duty personnel in recent years, although at times the Army has faced significant challenges in achieving its targets, particularly for certain high-demand occupations.”

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