One of the biggest reasons I chose to join the military—specifically the Air Force—was the reliable pay and educational benefits. I enlisted in 2008 during the height of the Great Financial Crisis, when job security was uncertain, and a steady paycheck was an opportunity I couldn’t pass up. On top of that, the chance to see the world while building a stable financial future made the Air Force an easy choice for me. Over the years, I’ve learned how to maximize the benefits available, from Tuition Assistance to commissary savings, and those advantages have played a huge role in my financial well-being.
For anyone considering an Air Force career or currently serving, understanding the full scope of military compensation is key to making the most of your service. The Air Force provides a comprehensive pay and benefits package that extends far beyond basic salary, ensuring that Airmen and their families are well taken care of throughout their careers. Here’s a broad overview of Air Force pay, compensation, and benefits.
Air Force Basic Pay: How Rank and Years of Service Impact Your Salary
Basic pay is the foundation of Air Force compensation and is determined by rank and years of service. Every year, the Department of Defense (DoD) publishes pay charts for enlisted and officer personnel on the Defense Finance and Accounting Service (DFAS) website. These charts outline the universal pay structure across all military branches.
The pay tier is determined by a pay grade, which is associated with both rank and total time in service. Although rank names may differ across branches, pay grades standardize compensation and denote rank equivalencies.
For enlisted members, pay grades are denoted by the letter “E” followed by a number. For example, an E-3 pay grade applies to an Air Force Airman First Class, an Army Private First Class, or a Marine Lance Corporal. For officers, the pay grade is denoted by the letter “O” followed by a number, such as O-1 for a Second Lieutenant. Pay increases with promotions and time in service, ensuring steady financial growth throughout a military career.
Enlisted members receive a yearly pay raise for the first four years of their career. After that, pay raises occur every two years until they reach their high year tenure. Officers, on the other hand, see pay increases every two years from the beginning of their commission.
Apart from these scheduled raises, Congress typically approves military pay increases annually to keep up with inflation. These raises generally range between 2-4%, ensuring service members’ compensation remains competitive with the cost of living.
Military Allowances: BAH, BAS, and COLA Explained
In addition to basic pay, Airmen receive several allowances that help offset the cost of living. These include:
- Basic Allowance for Housing (BAH): While BAH is intended to help cover housing costs, it is not designed to cover all housing expenses. It is based on median rental rates—not homeownership costs—and utilities in the geographical area surrounding a designated installation. If you find a great deal on a rental or purchase a home below your BAH rate (including utilities), whatever you don’t spend is yours to keep. Make sure you take advantage of free leave to scout out potential housing at your next duty station.
- Basic Allowance for Subsistence (BAS): BAS is intended to offset the cost of meals for service members, not necessarily cover groceries for an entire family if dependents are present. For individuals living in unaccompanied housing or dormitories, BAS is deducted as a dining facility is typically available on the installation. However, if food availability on an installation is deemed inadequate, single dorm residents may receive BAS II, a significantly higher allowance.
- Cost-of-Living Allowance (COLA): COLA is provided to help offset expenses in high-cost areas and is divided into two categories:
- CONUS COLA: This is a taxable supplemental allowance for service members assigned to high-cost areas within the continental U.S. (CONUS). An area qualifies as high cost if the non-housing cost of living exceeds 107% of the national average.
- Overseas COLA (OCONUS COLA): This is a non-taxable allowance designed to offset higher prices of non-housing goods and services for service members stationed overseas. OCONUS COLA fluctuates monthly and is affected by currency exchange rates.
Both BAH and BAS are non-taxable allowances, helping service members retain more of their earnings.
TRICARE Health Insurance: A Cost-Saving Benefit for Service Members
The Air Force provides comprehensive healthcare benefits to service members and their families through TRICARE, covering medical and dental care at little to no cost.
The average individual monthly premium for an Affordable Care Act (ACA) plan is $497, making TRICARE a significantly cost-effective benefit for service members.
Active duty service members are automatically enrolled in TRICARE Prime, where they are assigned a Primary Care Manager (PCM) at a Military Treatment Facility (MTF). If specialized care is required beyond what is available at the MTF, the PCM will issue a referral, ensuring the service member receives care at no cost. Additionally, prescriptions are available at no cost to the member. Dependents may also be enrolled in TRICARE Prime and receive the same benefits at no cost.
Financially Impactful Benefits Beyond Pay
Beyond direct pay, the Air Force provides additional benefits that can significantly impact personal finances, including educational opportunities and lifestyle perks:
- Maximizing Education Benefits: Tuition Assistance & the GI Bill
- Tuition Assistance (TA) covers up to $4,500 per year for college courses, with a semester hour cap of $250. Many military-friendly schools adjust tuition rates to match this cap. I used TA to complete my Bachelor’s degree online at Arizona State University, and the tuition discount allowed me to avoid out-of-pocket expenses.
- The Post-9/11 GI Bill provides up to 36 months (or up to 48 months for qualifying individuals) of education benefits and can be transferred to dependents with a four-year service commitment.
- Commissary and Exchange Savings: Lower Prices and Tax-Free Shopping
- Save up to 25% on groceries and access tax-free retail shopping with price matching, including Amazon. I consistently shop at the Commissary, and when I don’t, I always regret it when I see my receipt.
- MWR Benefits: Free Gyms, Discounted Travel, and Military Lodging
- Free fitness centers, discounted travel, and lodging options at resorts worldwide.
- Space-A Travel: How to Fly for Free on Military Aircraft
- Free or low-cost flights on military aircraft when seats are available.
Maximizing Your Air Force Pay and Benefits for Long-Term Financial Security
What was explained in this post is just the basic foundation of your military pay. There are always opportunities to earn bonuses, special pays such as flight pay, travel per diem, and deployment pay. The Air Force provides a competitive and comprehensive compensation package that has allowed me and my family to live comfortably while preparing for the future. By taking full advantage of these benefits, service members can set themselves up for financial stability during and after their careers.
