Before we get started, let me warn you – BAS is actually kind of a political grenade. I know! I thought it’d be fairly boring too! But if you read through to the end, you’ll see there are actually some quirks in the law governing BAS that will either make you fist pump or frown, based on how you think people should be paid.
To start, you are probably wondering why the heck I’m doing a post on the Basic Allowance for Subsistence. Well, two main reasons.
First, we’ve all been through a paycheck or two or 23 that were incorrect. And you may have (like me) experienced a situation where you tried to get it fixed and Finance told you “no no, it’s correct.” If you actually know the rules behind BAS, you will have better footing to stand on when you say “No really, this needs to be fixed. Here’s why, and here’s what it should be.”
Second, one of my taglines is “Practical personal finance for the newest recruits and the savviest commanders.” If you are going to be that savvy commander (or other leader, or just good coworker) you should understand how military members are paid. Specifically, you should (in my opinion) make sure your people are being paid correctly. I‘ve been that person whose pay was messed up and my leadership’s only answer was “go see Finance” even after I’d been to Finance several times. Let me tell you, that’s not a good answer. So settle in with a cup of coffee for five minutes while I tell you everything you need to know (probably) about the Basic Allowance for Subsistence.
What is the Basic Allowance for Subsistence?
The Basic Allowance for Subsistence, or BAS, is a tax-free allowance provided to most military members. The purpose of BAS is to ensure military members have money for food, aka subsistence. Or one form of subsistence, anyway. Your basic needs should be met between your military pay, Basic Allowance for Housing (or provided housing), and BAS.
BAS is actually codified in law – 37 U.S. Code § 402, to be exact. There is a lot of boring language in there, but I learned some things I didn’t know. For instance, an enlisted member can receive up to three months of BAS in advance. Also, there is a special rate for enlisted members assigned to single government quarters if they don’t have adequate food storage and preparation facilities, and don’t have a mess facility. They can receive double BAS in that case. I don’t know of any such situations, but if anybody has experienced that I’d love to hear about it in the comments!
How does the Basic Allowance for Subsistence work?
The Basic Allowance for Subsistence is based on the current cost of food in the United States as determined by the Department of Agriculture. Unlike the Basic Allowance for Housing, BAS does not change based on zip code, although we all know areas where food is more or less expensive. It also does not account for dependents. BAS is designed to provide food only for the service member.
Supposedly BAS is also not intended to cover the cost of all food-related expenses. However, at $368.29/month for enlisted and $253.63/month for officers, I hope it actually is covering all of your food expenses. $368 may not be enough to cover a family of four, but it should be enough to cover one person. If you are spending more than that per person on food, we should talk. We can definitely get your costs down!
Who receives the Basic Allowance for Subsistence?
All military members entitled to basic pay are also entitled to BAS except when they:
- Undergo Basic Military Training, including initial officer training if they do not have continuous prior enlisted service. This means an enlisted member going to Officer Candidate/Training School is entitled to BAS.
- Are in excess leave status, absent without leave (AWOL) status (unless the absence is excused as unavoidable), or on an approved educational leave of absence not exceeding 2 years
- Have no dependents and train for specifically authorized international amateur sport competitions, and the sponsoring agency subsists them during that period
- Are serving a court-martial sentence that includes an approved forfeiture of pay and allowances
Basically, most military members receive BAS most of the time.
Military members are then required to pay for any meals the government provides while they are entitled to BAS, except for certain circumstances. If you’ve ever been deployed to a base in a Combat Zone Tax Exclusion area you know what I mean. Deployers are usually, though not always, provided free meals. I guess they figure you should at least get free food for going to war, eh?
Members who are undergoing treatment at military treatment facilities, who are undergoing medical recuperation, therapy, or continuous care, also don’t have to pay for meals provided by the facility.
What was that bit about no taxes?
You’re probably aware that military pay is taxable, but that most allowances are not. Basic Allowance for Subsistence is one of the tax-exempt allowances. This can actually equal a pretty substantial benefit, as I discussed in my post about the Personal Statement of Military Compensation.
An enlisted member receiving BAS for a full year gets $4,419.48 tax-free in BAS. If that member is firmly in, say, the 25% tax bracket, that’s a savings of $1,104.87 each year just on federal income tax.
If you read this post before 1415 Eastern on June 25th, you saw a quip about how you could use your BAS to fully fund an IRA. I did some bad math there and it did not make sense. I’ve removed that so as not to confuse anybody. Thank you to reader J for pointing it out! I’ll try to stop writing quite so late at night…
In the 15% tax bracket, enlisted members get a savings of $662.92 on federal income tax. And for an officer in the 25% tax bracket, you are looking at $760.89 in annual federal income tax savings. Not bad!
Are there any fun facts about the Basic Allowance for Subsistence?
As it turns out, there are. And here you thought this would be super, super boring.
First, BAS is determined by the monthly cost of food for a US male between the ages of 20 and 50. That’s right, ladies, you are getting paid the same as men based on their higher calorie needs. So technically, you are getting paid more per calorie. Who knew?
I also learned that, based on how the law is written, officer BAS will never catch up to enlisted BAS. You see, BAS increases are determined like this:
- For enlisted, it is the monthly enlisted BAS for the preceding year plus the percentage increase in the cost of food for a 20-50 year old male over the previous fiscal year, as determined by the Secretary of Agriculture.
- For officers, it is the monthly officer BAS for the preceding year plus the same percentage increase that enlisted members receive.
So an officer’s BAS cannot increase enough to catch up to enlisted BAS. Let’s use an example to show why.
Say enlisted BAS in 2017 was a flat $300/month, and officer BAS was $200. That’s a $100/month difference. In 2018, let’s assume the percentage increase will be 1%. The new enlisted BAS is $303, and the officer BAS is $202. That’s a $101 difference. And if in 2019 the increase is 2%, the new enlisted BAS would be $309.06, and the new officer BAS would be $206.04. That’s a $103.02 difference. Because the percentage increases must be the same and the enlisted BAS starts higher, the gap is ever widening. Fascinating.
Who knew BAS was written in a way that favored women and lower paid individuals??
When BAS was implemented, why was the enlisted rate higher than the officer rate?
I haven’t come across that information.