Comparison of U.S. Military and Civil Service Pay and Benefits

GAO discussed how the pay and benefits received by U.S. military personnel compare with those of Federal civil servants. GAO noted that the primary difference between the systems is found in their design, because they serve different personnel management needs and operate in different environments. The military component system has many features which provide less-than-obvious enhancements to disposable income, including housing and subsistence allowances, the tax advantage, favorable State tax laws, and free health care. The disposable income of military members, as a result of these benefits, is much higher than it would first appear to be. However, GAO does not believe that this advantage is necessarily evidence that either group is underpaid. GAO believes that further study is needed on how best to provide equitable wages without unnecessary added payments.