Army - Pay & Allowances

Defense Finance and Accounting Service

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Military Pay 

Estimated Earnings During Military Service
For Civil Retirement Purposes



The Act generally provides that members of the U.S. Armed Forces performing services for the peacekeeping efforts in a "qualified hazardous duty area" are treated for tax purposes in the same manner as if the area were a combat zone (as determined under Section 112 of the Internal Revenue Code).


Money Issues

Savings Bonds
The savings bond system allows ACTIVE DUTY MEMBERS for all branches of military service, to request bonds they have purchased through allotment deductions to be kept in safekeeping. These bonds are held until the member requests the bonds to be mailed to a current mailing address

Thrift Savings Plan
The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees. Congress established the TSP in the Federal Employees' Retirement System Act of 1986. The purpose of the TSP is to provide retirement income.


Basic Allowance for Housing

Prescribe overseas allowances, housing, Cost of Living (COLA), Temporary Lodging (TLA), Evaluation.  Prescribe CONSUS Allowances, Variable Housing (VHA), Temporary Lodging Expenses (TLE), Evacuation, CONSUS COLA.  Entitlements, PCS Travel and Transportation of members/Dependents, Household Goods and POVS, TD.

BAH is based on geographic duty location, pay grade, and dependency status. The intent of BAH is to provide uniformed service members accurate and equitable housing compensation based on housing costs in local civilian housing markets, and is payable when government quarters are not provided.


The only rates considered official are in the DFAS computer database and are the ones used for all pay calculations.

The GSA Value Lodging Program  (formerly known as "Best Available Lodging Value") is designed to demonstrate to the industry that the federal government can direct its market share to specific properties by providing a "best value" alternative to travelers.

The purpose of this new program is to provide travelers with increased room availability, safe and convenient locations, additional complimentary amenities,  and rates within per diem allowance. The majority of hotels selected are offering these enhancements.




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