- The OSD identifies three types of pay: basic, special and incentive pay. Basic pay is similar to salary. Special pay may be applied based on the type of duty performed, for example aviation or for dangerous or hardship duty. Incentive pay is similar to bonuses for education or benchmarks.
- All service members receive basic pay. A service member's rank and years of service determine the rate of basic pay. The more years of service, the higher the rate of pay. Amounts also differ based on pay for active duty or Reserve drill.
- BAS is part of military compensation and is an allowance to pay for a member's meals while in service. The rate of BAS is adjusted each year based on the average price of food for one person, as determined by the USDA food cost index.
- BAH is an allowance to offset the housing cost for service members who elect not to live in military housing. BAH depends upon location, rank, and whether the service member has dependents, such as a spouse or children.
- BAH is based on circumstance. A service member will receive BAH-DIFF if they have dependents, but their dependents do not live with them. BAH may also be different for reservists on active duty less than 30 days. A single service member without dependents living in government quarters may be entitled to partial BAH.
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