Military Compensation

Military Compensation

Marines, let's break down what Regular Military Compensation (RMC) means. RMC is more than just a paycheck; it’s the total package of compensation that supports Marines and their families during their service. Here’s a rundown of what’s included, so Marines know exactly what their earning and how it benefits each Marine.

Components of a Marine's Military Pay

1. Basic Pay
First up is Basic Pay, which is the biggest slice of a Marine's compensation. This is determined by the Marine's rank and their years of service, and it’s the foundation of what each Marine earn.

2. Allowances
Marines also receive several allowances that are tax-free. These are designed to help cover specific needs:

• Basic Allowance for Subsistence (BAS): This helps cover the service members food expenses. MCO 10110.47A "BASIC ALLOWANCE FOR SUBSISTENCE (BAS) AND MEAL CARD PROGRAM"
• Basic Allowance for Housing (BAH): Designed to assist Marines with rental housing costs. The BAH Rate is determined by the Marine's Rank and their Dependent Status. MCO 7229.56A "ENTITLEMENT TO BASIC ALLOWANCE FOR HOUSING (BAH) AT LOCATIONS OTHER THAN PERMANENT DUTY STATION (PDS)"

• Clothing Allowances:

  • Clothing Replacement Allowance: An annual payment for enlisted Marines to replace uniforms.

  • Supplemental Clothing Allowance: An annual payment for those Marines in special assignments.

• Dislocation Allowance (DLA): A one-time payment to reimburse Marines for moving expenses, which varies by rank and family size.

• Family Separation Allowance (FSA): If Marines are away from their families, a monthly payment of $250 is paid to compensate for expenses during the period the Marine is separated from their family.

• Cost of Living Allowance (COLA): A taxable allowance for Marines in high-cost areas, both in the Continental U.S. (CONUS) COLA and Overseas (OCONUS) COLA.

• Basic Needs Allowance (BNA): A monthly allowance for eligible Marines whose household income is below 150% of the Federal Poverty Guidelines. Further information can be founder under the BNA tap of this page. 
   

Tax Advantages
Marines, don’t forget about the tax advantages that come with your compensation!   While basic pay and some S&I pays are taxable, allowances (like BAH and BAS) aren’t subject to federal taxes. Plus, if a Marine is deployed in a combat zone, they might qualify for the Combat Zone Tax Exclusion (CZTE), which can exempt a good chunk of their earnings from federal taxes.  

3. Retirement Plans
Marines, planning for the future? There are three primary retirement plans all Marines should know about:

• Blended Retirement System (BRS): This blends a defined benefit with a contribution to a Marine's Thrift Savings Plan (TSP).  If a Marine joined after January 1, 2018, this is the plan.  It’s also an option for those who enlisted earlier. Further information can be found under the BRS Tab of this page.

• High-36 Plan: For those Marines who entered service between September 8, 1980, and January 1, 2018.  This plan bases their retirement on the highest 36 months of pay.

• REDUX Plan: An optional plan for those Marines who joined after July 31, 1986, which includes a bonus at the 15-year mark and a defined benefit. 
   

4. Additional Benefits
A Marine's compensation package includes a range of additional benefits that enhance their service experience:

• Medical and Dental Insurance: Free for Marines, and low-cost for their family.

• Service Members Group Life Insurance (SGLI): Low-cost life insurance up to $500,000.

• Post 9/11 GI Bill: If a Marine served on active duty after September 10, 2001, this could cover up to 48 months of education benefits, including tuition and housing.

• Paid Leave: Marines earn various types of paid leave:

• Annual Leave: 30 days a year.

• Convalescent Leave: For recovery from medical issues.

• Parental Leave: Up to 12 weeks for new parents.

• Bereavement Leave: Up to 14 days for the death of an immediate family member.
  
   

5. Board for Correction of Naval Records (BCNR)
BCNR Webpage

• All Marines have the right to submit an application to the BCNR when they believe there has been an administrative error and/or injustice on behalf of the Marine Corps. The BCNR is the highest level of administrative review within the Department of the Navy. 
• The burden of proof and/or documentation is the responsibility of the applicant.  A Marine will submit the DD Form 149 with all supporting documentation to the BCNR. The BCNR will task the respective Policy owner within Headquarters Marine Corps to provide an Advisory Opinion (AO). Similar to a Policy Determination, MPO is responsible for providing AOs pertaining to the Policies that fall within the MPO portfolio (i.e. Blended Retirement System, Transfer of Education Benefits, ect…). 
• Marines are encouraged to conduct regular review of their administrative records prior to submitting an application to the BCNR. Prior to submitting an application, review the BCNR FAQs.
• Once a Marine submits an application to the BCNR and MPO is tasked with providing an AO, MPO is unable to provide any information on and/or a status on an AO in support of a BCNR; please do not contact MPO.  MPO takes action on the tasked AOs in the order they are received and will return the AO to the BCNR as timely as possible. For all questions pertaining to an open BCNR, please contact the BCNR​

​6. Waiver/Remission of Indebtedness
Defense Finance and Accounting Service (DFAS) Waiver/Remission of Indebtedness Website

• The  Waiver/Remission of Indebtedness Application (DD Form 2789) is used by military members (active, separated, or retired), annuitants, civilian employees (current, former, or retired), and by former spouses to request a waiver of indebtedness collection for erroneous payments of salary, pay/allowances, and expense reimbursement or allowances for travel, transportation, and relocation; or in the case of enlisted members, remission of these debts.
• DFAS accepts full and partial payments for out-of-service debts, including payments toward an installment agreement. Penalties and interest will continue to grow until you pay the full balance.
• Active USMC Members: Submit your completed DD Form 2789, including all supporting documentation to your finance or disbursing office. Finance or disbursing will complete the remaining sections of the DD Form 2789 and submit the application to DFAS for consideration.  Finance or Disbursing officer’s endorsement is required.
  Learn About Waivers and Remissions
  Current or Former Military Members – Waivers 

Conclusion
Regular Military Compensation (RMC) is a comprehensive package designed to support Marines and their families while during their service. Understanding these components helps Marines appreciate the full value of what they earn, including not just the pay, but also the allowances and benefits that come with military life and service.
 

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>> Military Compensation Frequently asked questions (faq)