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The military pay and benefits in the US Army include compensation in several headings. Those include the basic pay, housing allowance, food allowance, special pays, military medical care, combat zone pay, military pay charts, enlistment and reenlistment bonus information etc. There is an equal basic military pay scale for every Soldier. This system underscores the principle of "equal pay for equal work."

The military compensation system covers more than 70 different types of pay and allowances. The basic military pay scale is approximately 70 percent of the annual direct cash compensation. The basic pay for active-duty personnel determines the computing Reserve component drill pay and the initial levels of retired pay. It varies depending on the pay grade and service duration. There are 15 different longevity levels of military pay.

The military pay increases with promotion. Besides rise in leadership and responsibility, promotion brings increase in the military pay scale too.

In addition to promotion, several other factors affect the military pay scale. Increase in Annual Cost of Living is one. Longevity increases virtually every 2 years. The increase in the Basic Allowance for Housing (BAH) is another factor to affect the military pay. The Basic Allowance for Subsistence (BAS) also increases regularly. The Cost of Living Allowance (COLA) also brings some difference. Further, there are some Special Pays for different occupational conditions like Combat, Flight, and Hazardous Duty etc.

Two yearly acts of legislation control the military pay and benefits. These are- the Defense Appropriations Act and the Defense Authorization Act. The first legislation allocates funds to the military. The second guides the military on how to spend the money they get that includes structuring the military pay scales. After passing the FY 2005 Defense Appropriation Act, the Congress has already sent it for the White House approval.

Major allowances in the military pay, like housing and food, do not come under the federal income tax withholding. This benefit covers all the military pay scales in the US Armed Forces.

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