Fact or Fiction: Military Money Matters

Staff

4 Min Quiz

Military base pay rates are dependent upon the Employment Cost Index.

Congress can vote to boost the military base pay rates above the Employment Cost Index, which measures civilian pay rates in the United States.

Advertisement

Many factors can increase military pay.

Several factors can change your base pay. Among them are promotions, annual pay raises, combat or hazard pay, acts of Congress and more.

Advertisement

There are 12 pay grades for enlisted members of the military.

There are nine pay grades ranging from E-1 to E-9 for enlisted members (though E-1 is subdivided into two pay grades).

Advertisement

The military offers cost of living allowances for certain areas in the United States.

The military does offer a cost of living allowance for areas within the United States where expenses are at least 8 percent greater than the average cost of living.

Advertisement

The Servicemember's Civil Relief Act (SCRA) provides financial protection to all military personnel.

The SCRA protects military members who are deployed or otherwise on active duty. Protection begins the day the service member receives orders.

Advertisement

Serving in a combat zone for a month will exclude your wages from federal income tax for that month.

Even if you only serve half a day in a combat zone as part of your official duties, your military wages for the entire month are exempt from federal income tax.

Advertisement

Most Navy personnel who serve aboard submarines are eligible for special pay.

In order to encourage career sailors to stay aboard submarines, the Navy offers Continuous Submarine Duty Incentive Pay (CONSUBPAY).

Advertisement

Members of the U.S. military receive their pay once a month.

The U.S. military pays service members twice a month, on the 1st and the 15th.

Advertisement

Under the SCRA, interest from credit services is capped at 6 percent for all deployed military personnel.

The SCRA makes it illegal for any credit agency to charge more than 6 percent interest on all credit to deployed service members.

Advertisement

The Montgomery GI Bill provides tuition money for eligible veteran or active-duty members of the U.S. Army.

No matter what branch of the military you serve in, the Montgomery GI Bill can provide money to put toward college tuition, books and other educational expenses.

Advertisement

Explore More Quizzes

Image: refer to hsw

About This Quiz

You might know every detail of every major battle fought in the last century, but can you tell fact from fiction when it comes to military money matters?

About HowStuffWorks Play

How much do you know about dinosaurs? What is an octane rating? And how do you use a proper noun? Lucky for you, HowStuffWorks Play is here to help. Our award-winning website offers reliable, easy-to-understand explanations about how the world works. From fun quizzes that bring joy to your day, to compelling photography and fascinating lists, HowStuffWorks Play offers something for everyone. Sometimes we explain how stuff works, other times, we ask you, but we’re always exploring in the name of fun! Because learning is fun, so stick with us!