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Defense Primer: Regular Military Compensation (CRS Report for Congress)

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Release Date Revised Nov. 21, 2024
Report Number IF10532
Report Type In Focus
Authors Kristy N. Kamarck; Nicholas M. Munves
Source Agency Congressional Research Service
Older Revisions
  • Premium   Revised Dec. 5, 2023 (3 pages, $24.95) add
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Summary:

Congress sets compensation levels for members of the Armed Forces through statutory authorizations and appropriations. When people talk about military pay, they are often only referring to “basic pay.” Although basic pay is normally the largest component of cash compensation that a servicemember receives, there are other types of military pay, allowances, and tax benefits that add significantly to it. Regular Military Compensation (RMC) is a statutorily defined measure of the cash or in-kind compensation elements which all servicemembers receive every payday. It is widely used as a basic measure of military cash compensation levels and for comparisons with civilian salary levels. RMC, as defined in law, is “the total of the following elements that a member of the uniformed services accrues or receives, directly or indirectly, in cash or in kind every payday: basic pay, basic allowance for housing, basic allowance for subsistence, and Federal tax advantage accruing to the aforementioned allowances because they are not subject to Federal income tax.” (37 U.S.C. §101(25)) Military compensation is structured much differently than civilian compensation, making comparison difficult. RMC provides a more complete understanding of the cash compensation provided to all servicemembers and therefore is usually preferred over basic pay when comparing military with civilian compensation, analyzing the standards of living of military personnel, or studying military compensation trends.