Basic Housing Allowance Pay Scale for the Army
After your base pay, allowances are the next most important part of a military paycheck. Basic Allowance for Housing (BAH) and Basic Allowance for Sustenance (BAS) are the two most common allowances given to service members who are not provided with housing and food by the military. The Basic Allowance for Housing (BAH) is a component of the allowances that are in addition to a military member's basic pay. The military's compensation system has over 70 separate types of pay and allowances and the BAH is one of these. The amount of money that you receive through the BAH depends on your location, pay grade and whether you have any dependents.
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Identification
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A military member's BAH is based on geographic duty location, pay grade and dependency status. Dependency status can be determined by a service member with a spouse, children or both. It can also be determined by dependents from a dissolved marriage and the payment of child support. Basic Allowance for Housing is dependent on location and varies by the cost of living where the service member is stationed. Civilian housing in New York, for example, is generally much higher than it is in New Mexico and the BAH takes this into account in order to protect members from unnecessary and unfair out-of-pocket costs. BAHs are nontaxable, which makes them a vital part of a member's total pay. A member at the lowest pay grade (E-1) receiving BAH with dependents will receive, on average, $565 a month, while a member at the highest pay grade receiving BAH with dependents will receive about $1,587.
Types
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There are several types of BAH that work to satisfy the large variety of housing situations for members of the armed service, including situations regarding service members living with families and service members living away from their families. BAH with Dependents, BAH without Dependents, Partial BAH, BAH II and BAH-DIFF are the different types of BAH available for service members. BAH with Dependents is for members on permanent duty and provides a housing allowance for the soldier and family when government housing is unavailable. BAH with Dependents also provides the dependents with a housing allowance when the soldier is serving overseas. BAH without Dependents provides a permanent-duty soldier with a housing allowance for either home or overseas, depending on service. A member without dependents, living in government housing, is eligible for a Partial BAH, which is the smallest allowance provided. The BAH II is most common for Reservists and for soldiers in transition, providing a housing allowance to a reservist who is placed on active duty or a soldier who is moving from an area where no prior BAH was established. BAH-DIFF is the housing allowance for a member who is assigned to single-type housing and is paying child support.
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Considerations
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Basic Allowance for Housing is analyzed annually for the budget and increases according to the increases in civilian pay increases. While basic pay mimics civilian jobs, the BAH mimics increases in the total cost of living according to location. Current laws governing annual pay and allowance increases guarantee that military pay rates will always be set 1/2 a percent above that of civilian increases. In general, the BAH increases at a higher rate than other pay increases. In 2009, the BAH is expected to increase by more than 7 percent, compared with the average of 3.7 percent for basic military pay. Starting in 2008, military pay raises were determined by the National Defense budget.
Function
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Because there are substantially more soldiers than there is government and base housing, the BAH is set to aid soldiers who do not live on federally funded bases. The intent of BAH is to provide uniformed service members with an accurate allowance to provide fair housing options, which is based on the cost of living in civilian housing markets. If government quarters or base housing are not provided to the soldier, than the BAH is always provided to supplement housing costs. In 2007, the BAH provided soldiers with enough housing allowance compensation that there were zero out-of-pocket expenses for armed service members living in civilian housing. BAH is determined by the location you are assigned and not necessarily the area where you live. BAH amounts are also provided, in most cases, when you are living separately from your dependents.
Potential
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Annual budget reviews help to keep the BAH at a stable rate, according to the cost of living and annual pay increases for civilians. Although BAH rates are protected from decreasing, there is always the potential that the coverage will depreciate according to local rental markets in some areas. In 2007, the BAH reached its zero out-of-pocket goal for service members living in civilian housing for the first time since the allowance began, and the new budget control provided by the National Defense budget will help to continue this rate.
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