United States Military Pay - Pay Versus Allowance

Pay Versus Allowance

This article deals with most types of military pay, but there are two broad categories: "Pay" and "Allowance". Typically, pay is money which is based upon remuneration for employment, while allowance is money necessary for the efficient performance of duty. Generally speaking, pay is income, while allowances are reimbursements. In the landmark case Jones v. The United States, the Court of Claims decided that military allowances are not “…of a compensatory character…” and “…not income as well”. Since it was determined that allowances are not income they cannot be taxed, divided or garnished for any reason, while pay can be (42 USC 659, et seq.).

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Famous quotes containing the words pay and/or allowance:

    Service is the rent that you pay for room on this earth.
    Shirley Chisholm (b. 1924)

    The chess-board is the world; the pieces are the phenomena of the universe; the rules of the game are what we call the laws of Nature. The player on the other side is hidden from us. We know that his play is always fair, just, and patient. But also we know, to our cost, that he never overlooks a mistake, or makes the smallest allowance for ignorance.
    Thomas Henry Huxley (1825–1895)