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