assessing pay and benefits for military personnel.pdfVIP

E C O N O M I C A N D B U D G E T I S S U E B R I E F A series of issue summaries from CBO the Congressional Budget Office AUGUST 15, 2007 Assessing Pay and Benefits for Military Personnel Summary Are members of the U.S. military paid enough? The Those types of comparisons can give a sense of whether answer depends in part on the measure used to assess service members are being offered a competitive com- military compensation. In terms of basic cash pay, pensation package. But such comparisons are compli- enlisted personnel fall in the middle of the earnings cated by the fact that job conditions in the military are distribution for civilian workers of similar ages and very different—and sometimes much more hazard- education levels. With the military’s cash allowances ous—than those in the civilian sector. for food and housing included (as well as the tax advantage that service members receive because those Pay comparisons are more meaningful when viewed in allowances are tax-exempt), enlisted personnel earn the context of the military’s ability to recruit and retain more than at least 75 percent of comparable civilians, an experienced, well-qualified force. Overall, the the Congressional Budget Office (CBO) estimates. Department of Defense (DoD) has met its goals for Members of the military also receive more-extensive recruiting and retaining a