What the U.S. Navy pays and when

The U.S. Navy pays active-duty sailors through the Defense Finance and Accounting Service (DFAS), which deposits base pay twice monthly on the 1st and 15th of each month. The amount depends on rank and years of service. Navy retirees receive a monthly pension from DFAS based on a formula tied to rank, years of service, and the retirement system they entered — either the High-36 system (for those who joined before 2006) or the Blended Retirement System (for those who joined in 2006 or later).

Beyond base pay, active-duty sailors receive housing allowance (BAH), food allowance (BAS), and clothing allowance depending on their duty status and whether they live on base. Retirees do not receive BAH or BAS; their pension is the primary payment. Both active-duty and retired personnel may receive additional payments for hazard duty, sea pay, or other special circumstances.

Key Takeaways

  • Active-duty Navy pay deposits twice monthly (1st and 15th) through DFAS, and includes base pay plus housing, food, and clothing allowances.
  • Navy retirees receive a single monthly pension calculated under either the High-36 system or the Blended Retirement System, depending on when they joined.
  • DFAS is the single payment processor for all Navy compensation; you cannot choose a different bank or payment method through the Navy itself.
  • Pay stubs and tax documents are available through the myPay portal, where service members and retirees can also update banking information and tax withholding.
  • Survivor Benefit Plan (SBP) deductions come from active-duty or retirement pay if you enrolled, and reduce the amount you receive each month.

Active-duty pay structure and deposit timing

Active-duty sailors receive base pay on a fixed schedule: the 1st and 15th of each month. DFAS deposits directly to the bank account you designate during in-processing or update through myPay. If you change banks, you must update your account information in myPay at least three business days before the next pay date to avoid a delay.

Base pay is determined by your pay grade (E-1 through E-9 for enlisted, O-1 through O-10 for officers) and your time in service. A sailor with the same rank but more years of service earns more than a newer sailor. The Department of Defense publishes the full pay table each January, and DFAS applies any raises automatically.

In addition to base pay, active-duty sailors receive Basic Allowance for Housing (BAH) if they do not live in government quarters, Basic Allowance for Subsistence (BAS) if they do not eat in the galley, and a clothing maintenance allowance. These allowances vary by location, rank, and family status. A sailor stationed in San Diego with dependents receives a different BAH than one stationed in rural Kansas.

Navy retirement pay and the two pension systems

Navy retirees who served under the High-36 system (joined before January 1, 2006) receive a pension calculated as 2.5% of their average base pay over their highest 36 months of service, multiplied by their years of service. A sailor who retired after 20 years at the rank of E-6 with a High-36 average of $4,000 per month would receive $2,000 monthly (2.5% × $4,000 × 20 years). This pension is paid for life and does not change based on inflation unless Congress votes to raise military pensions.

Retirees who joined on or after January 1, 2006 fall under the Blended Retirement System (BRS). Under BRS, the pension formula is the same (2.5% × High-36 × years of service), but retirees also receive a government contribution to a Thrift Savings Plan (TSP) account. The Navy contributes 5% of base pay automatically, and matches up to an additional 4% if the retiree contributes. A retiree with 20 years of service under BRS receives both a pension and a TSP balance, whereas a High-36 retiree receives only the pension.

Both systems require 20 years of service to receive any pension. A sailor who leaves after 19 years receives nothing; one who leaves after 20 years receives a pension for life starting when ready.

How to access your pay information and update banking details

All Navy service members and retirees can view their pay stubs, tax forms (LES for active-duty, 1099-R for retirees), and account settings through myPay, the official DFAS portal. You log in with your DoD ID number and password. myPay shows your year-to-date earnings, tax withholding, and any deductions.

To change your bank account or routing number, log into myPay, select "Direct Deposit," and enter your new account information. The change takes effect on the next pay date if you submit it at least three business days in advance. If you submit it fewer than three business days before pay day, it may not process until the following pay period.

If you forget your myPay password or cannot log in, you can reset it through the myPay login page or contact the DFAS customer service line at 1-888-332-7411. They can also answer questions about your pay, deductions, or tax withholding.

Survivor Benefit Plan deductions and optional coverage

The Survivor Benefit Plan (SBP) is an optional program that allows service members and retirees to may support their family receives a monthly payment after they die. If you enroll, DFAS deducts the SBP premium from your pay or pension each month. The amount depends on the coverage level you choose and your age at enrollment.

Active-duty sailors can enroll in SBP during their first 180 days of service or within 90 days of a major life event (marriage, birth of a child, divorce). Retirees can enroll within one year of retirement. If you do not enroll within these windows, you lose the chance to do so unless you have a may have access to life event.

The SBP deduction appears on your pay stub as a separate line item. If you enrolled in SBP and later want to cancel it, you must submit a written request to DFAS; you cannot cancel through myPay. Cancellation is permanent and cannot be reversed.

Special pays and bonuses for specific duties

Beyond base pay and allowances, sailors may receive additional compensation for hazardous duty, submarine service, flight pay, or sea duty. These special pays are added to your base pay and appear on your pay stub. A sailor stationed on a submarine receives submarine duty pay in addition to base pay. A pilot receives flight pay. A sailor deployed to a hostile fire zone may receive hostile fire pay.

The Navy also offers reenlistment bonuses to sailors in high-demand ratings who agree to extend their service. These bonuses are paid in a lump sum or in installments over the reenlistment period, depending on the terms of the bonus agreement. Bonuses are taxable income and appear on your W-2 or LES.

Tax withholding and filing requirements

DFAS withholds federal and state income tax from your pay based on the W-4 form you submit. You can update your W-4 at any time through myPay to change the amount withheld. If you want to withhold more (to avoid owing taxes at the end of the year) or less (to increase your take-home pay), you can adjust it yourself without asking permission.

Active-duty sailors receive a W-2 each January showing their total earnings and taxes withheld. Retirees receive a 1099-R. Both documents are available through myPay and are sent to your address on file. You use these forms to file your federal and state tax returns.

Military pay is subject to federal income tax but is exempt from state income tax in most states. A few states (like South Carolina and Vermont) tax military retirement pay; others do not. Check your state's tax rules or ask a tax professional if you are unsure whether your Navy pay is taxable in your state.

Frequently Asked Questions

What happens to my pay if I'm deployed?

Your base pay, allowances, and any special pays continue on the same schedule (1st and 15th). If you are deployed to a hostile fire zone, you may also receive hostile fire pay. Your pay deposits to your bank account as usual, and you can access it through myPay or your bank.

Can I change my pay deposit to a different bank after I join?

Yes. Log into myPay, update your bank account and routing number, and submit the change at least three business days before the next pay date. If you submit it closer to pay day, it may not process until the following pay period.

What is the difference between BAH and BAS?

BAH (Basic Allowance for Housing) is paid to sailors who do not live in government quarters; it varies by location and rank. BAS (Basic Allowance for Subsistence) is paid to sailors who do not eat in the galley. Both are part of your total compensation and are taxable income.

Do I get paid during boot camp?

Yes. Recruits in boot camp receive base pay at the E-1 rate (currently around $1,917 per month, though this changes annually). You do not receive BAH or BAS because the Navy provides housing and food. Your pay deposits to your bank account, but you have limited access to it during training.

How long after I retire do I start receiving my pension?

Your first retirement pension payment arrives within one month of your official retirement date. DFAS processes the paperwork during your final weeks of service and sets up your direct deposit. If you do not receive your first payment within 30 days of retirement, contact DFAS at 1-888-332-7411.