They aren’t underpaid, at least not on the low end.
A raw recruit (E1) gets $23,000 per year. Housing, food, work clothing and healthcare is paid for. After tax, it’s like ~$1,500 in completely discretionary income. This is why you get 19 year old new recruits buying new sports cars. They can afford it. The smart ones start socking away money while they are young.
A new officer (O1) gets $43,000 per year. If they are married they can live off base and get a housing allowance. If lucky enough to get stationed in SF, that’s another $4,017 per month. So just base pay and allowance is $91,000. And the housing allowance is tax free, so it’s equivalent to making more than $100,000 per year.
Then add on top sign on or enlistment bonuses especially for in demand MOSs, relocation allowances, etc.
Then you put in 20 years and you get a pension you can live on and healthcare for the rest of your life.
They aren’t making Silicon Valley money but it puts most members in firmly middle class territory.
I've worked with many that have retired and entered the private sector. My understanding is that they continue to make their tax-free enlisted salary (via their pension) after retirement on top of whatever they're making in their private sector job. For high-ranking officers, this can be >$100k!
Many of these folks have second homes, a small RE portfolio, and more!
It's very difficult comparing salaries in different nations, because expenses vary so much. However, your comment confirms my opinion. I would like to see a 50% increase in that E1/E2/E3 base pay. I've worked with them - they earn it.
The idea of military was that you have below average pay but insane benefits (and depending on the time, cultural respect), both directly and indirectly (There are/were so many places that give a military discount). The latter is falling off as of late (both directly and indirectly, again), so what's the point if you're not conscripted?
refurb|2 years ago
A raw recruit (E1) gets $23,000 per year. Housing, food, work clothing and healthcare is paid for. After tax, it’s like ~$1,500 in completely discretionary income. This is why you get 19 year old new recruits buying new sports cars. They can afford it. The smart ones start socking away money while they are young.
A new officer (O1) gets $43,000 per year. If they are married they can live off base and get a housing allowance. If lucky enough to get stationed in SF, that’s another $4,017 per month. So just base pay and allowance is $91,000. And the housing allowance is tax free, so it’s equivalent to making more than $100,000 per year.
Then add on top sign on or enlistment bonuses especially for in demand MOSs, relocation allowances, etc.
Then you put in 20 years and you get a pension you can live on and healthcare for the rest of your life.
They aren’t making Silicon Valley money but it puts most members in firmly middle class territory.
nunez|2 years ago
Many of these folks have second homes, a small RE portfolio, and more!
thret|2 years ago
johnnyanmac|2 years ago