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:

    When a man seduces a virgin who is not engaged to be married, and lies with her, he shall give the bride-price for her and make her his wife. But if her father refuses to give her to him, he shall pay an amount equal to the bride-price for virgins.
    Bible: Hebrew, Exodus 22:16.

    Sometimes, because of its immediacy, television produces a kind of electronic parable. Berlin, for instance, on the day the Wall was opened. Rostropovich was playing his cello by the Wall that no longer cast a shadow, and a million East Berliners were thronging to the West to shop with an allowance given them by West German banks! At that moment the whole world saw how materialism had lost its awesome historic power and become a shopping list.
    John Berger (b. 1926)