I tend to agree that the total compensation package that the military offers these days, is pretty damn good. I have yet to work for a company that has offered the same benefits that the military has to offer. If anything, the only reason why salary is more for contractors, is because of this fact. Not to mention that many companies that use independent contractors do not offer retirement plans or medical plans. Nope, when you cut away from the military umbilical cord, you are on your own. That is why I tell guys to save your pennies, because you never know how long your contract will last or even how long your company will be around.
And to add further to this article, I know of some contractors that have gone back to the military. One of the reasons for that is stability for their family, or to get certifications that are tough to get anywhere else (like clearances). Some guys join up in Guard units so they can serve and be a contractor at the same time. That is an optimum set up, but you don’t have much of a personal life with that one.
Finally, there are the tax incentives of military versus contractor. If a contractor does not get their 330 days overseas, or is not able to claim residency in a foreign country, they will be taking a huge hit in taxes. Some guys are able to get their 330 days, but many are not able to enjoy the foreign earned income tax credit. The reason for that is a family emergency or the company just doesn’t have enough work for you to stay overseas for that long. Or your contract could end. There is a number of things that could happen to you last minute, that could screw up your plans for taxes, and it pays to be prepared. –Matt
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Military pay competitive with private sector
April 30, 2010WASHINGTON: Military compensation is competing well against the private sector, as evidenced by the high rate of recruitment and retention, a Defense Department official told a Senate subcommittee today.
Therefore, the department is focusing on targeted special pays and bonuses as an efficient means to give incentives for people to sign up for hard-to-fill and hard-to-retain specialties, William J. Carr, deputy undersecretary of defense for personnel policy, told the Senate Armed Services Committee’s personnel subcommittee.
Using regular military compensation – basic pay combined with housing and food allowances and federal tax advantages – as a comparison, military members are paid higher than 70 percent of their private-sector peers of similar education and experience, Carr said.