Basic Pay

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Basic Pay
175TH FMC
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Terminal Learning Objective
Using the DoD Financial Management Regulation
Volume 7A, Chapter 1 correctly calculate Basic
Pay
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Basic Pay Reference
DoDFMR Volume 7A Chapter 1
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Basic Pay Defined
What is Basic Pay?
Simply stated it is the amount of money you are
paid, dependent upon rank and time in service.
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Basic Pay Computation
How to compute Basic Pay?
Compute monthly compensation as if each month
had 30 days. When service begins on an
intermediate day of the month, pay for the actual
number of days served during that calendar month,
but only through the 30th day of that month. If
active military service begins on the 31st day of
any month, compensation does not accrue for that
day.
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Basic Pay Computation
Example

• Soldier enters the military on 29 July
• For Basic Pay purposes July has 30 days
• Soldier is entitled to 2 days for Basic Pay

30 Days in July
- 29 Date entered service
1
1 (inclusive day)
2 days for Basic Pay purposes
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Basic Pay Computation
How to compute Basic Pay for February?
Any person who enters active service during
February and serves until the end of the month is
entitled to the pay for 1 month (30 days), less
the prorated amount for the number of days
expired before entry on duty. If the service ends
before the last day of February, pay the member
only for the actual number of days served.
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Basic Pay Computation
Example

• Soldier enters the military on 10 February
• For Basic Pay purposes February has 30 days
• Soldier is entitled to 21 days for Basic Pay

30 Days in February
- 10 Date entered service
20
1 (inclusive day)
21 days for Basic Pay purposes
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Basic Pay Computation
Basic Pay Tables

• Located at Defense Finance and Accounting
  Service web site at www.dfas.mil.
• Basic Pay is based on rank and years of service.
  
• Longevity update occurs when a Soldier enters a
  new range of pay based on years of service.

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Basic Pay Computation
Basic Pay Tables
Determine the Basic Pay for a CPT with 8 years
of service
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Basic Pay Computation
Basic Pay Tables
Answer 5,002.20
Determine the Basic Pay for a CPT with 8 years
of service
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Basic Pay Computation
Daily Rate

• The daily rate of Basic Pay is the amount of 1/30
  of the monthly rate.

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Basic Pay Computation
Daily Rate Example

• CPT with 8 years of service daily rate for Basic
  Pay.
• Monthly rate 5002.20

30/5002.20
166.74 (daily rate)
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Basic Pay Computation
Longevity update
When a Soldier has a longevity update they are
entitled to two different amounts for Basic Pays
during that month. To compute the pay for that
month you have to determine the number of days
and at what rate the Soldier is entitled to for
those days.
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Basic Pay Computation
Longevity update Example 1
A CPT goes over 8 years of service for Basic
Pay on 20 August. What is the CPTs Basic Pay
entitlement for the month of August?
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Basic Pay Computation
Longevity update Example 1

• From 1 to 19 August the CPT is entitled to Basic
  Pay at the 6 years of service rate.
• From 20 to 30 August the CPT is entitled to
  Basic Pay at the 8 years of service rate.

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Basic Pay Computation
Longevity update Example 1
6 years of service
8 years of service
30
19
-20
-1
10
18
1 (inclusive date)
1 (inclusive date)
19 Days
11 Days
To check for accuracy add the days from each
column and they should equal 30 days.
19 11 30
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Basic Pay Computation
Longevity update Example 1
6 years of service
8 years of service
30 / 4,763.10 Basic Pay
30 / 5,002.20 Basic Pay
166.74 per day
158.77 per day
X 19
X 11
3,016.63
1,834.14
3,016.63 1,834.14
4,850.77
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Basic Pay Computation
Longevity update Example 2
A SFC goes over 16 years of service for Basic
Pay on 8 February. What is the SFCs Basic pay
entitlement for the month of February?
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Basic Pay Chart
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Basic Pay Computation
Longevity update Example 2

• From 1 to 7 February the SFC is entitled to
  Basic Pay at the 14 years of service rate.
• From 8 to 30 February the SFC is entitled to
  Basic Pay at the 16 years of service rate.

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Basic Pay Computation
Longevity update Example 1
14 years of service
16 years of service
30
7
- 8
-1
22
6
1 (inclusive date)
1 (inclusive date)
7 Days
23 Days
To check for accuracy add the days from each
column and they should equal 30 days.
7 23 30
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Basic Pay Computation
Longevity update Example 1
14 years of service
16 years of service
30 / 3,592.50 Basic Pay
30 / 3,694.50 Basic Pay
123.15 per day
119.75 per day
X 7
X 23
838.25
2,832.45
838.25 2,832.45
3,670.70
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Basic Pay Check on Learning
What regulation governs Basic Pay?
DoDFMR Volume 7A Chapter 1
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Basic Pay Check on Learning
For Basic pay, how many days or in the month?
30 days
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Basic Pay Check on Learning
What is a longevity update?
When a Soldier enters a new range of pay based
on years of service.
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Basic Pay
Questions?