The Average Salary of an E5 in the Army
- The basic salary for a sergeant in the Army is based on the amount of time he has in the service. Basic pay is taxable, so the amounts noted are prior to taxes being taken out. If he is able to make an E-5 pay grade within two years of joining the Army, his pay is $2,061.30 per month, as of the 2010 pay table. An E-5 can make as much as $2,924.70 per month if he has more than 40 years in the Army. It is possible for a sergeant in the Army to make less money than this if he gets into trouble and gets a partial or full pay cut as punishment. This pay cut can be for only one month or it may last several months, as the Army official who orders the punishment sees fit.
- The pay a sergeant receives each month may include special pay and allowances for certain things. Most special pay and allowances aren't taxable, so the sergeant receives the entire amount. For example, a sergeant who doesn't live in military housing may qualify for the basic allowance for housing, which can add anywhere from $8.70 to $804 per month to her check. If the sergeant is sent out to sea, she can make from $65 to $425 a month in sea pay. Hazardous duty increases her pay by $190 per month, and hostile fire pay adds $225 per month to her pay. Annual clothing allowances are also available in amounts up to $618.56 per year.
- In order for a sergeant to receive his salary, he has to have a bank account because the Army pays through the Defense Finance and Accounting Service, which deposits the money directly into the sergeant's bank account. Pay is deposited on the first and fifteenth day of each month. If these dates fall on a federal holiday, Saturday or Sunday, pay is deposited on the business day prior to the normal pay date.
- New pay tables are released annually for the military. The amount of the annual raise is equal to or higher than the civilian pay raise noted by the Employment Cost Index. Congress must approve any pay raise that is higher than the civilian pay raise. Pay raises become effective on January 1 of each year.
- Sergeants in the Army receive some other benefits. While these benefits don't add money to the sergeant's actual paycheck, they do save the sergeant some money since she doesn't have to pay, or has to pay a discounted rate, for these benefits. Discounted life insurance, off-duty travel and education opportunities are available. Health, dental and prescription insurance are offered free of charge to Army members through Tricare.