Army pay is calculated using job evaluation scores, MOD evidence and information gathered during visits by the Armed Forces' Pay Review Body (AFPRB)  to units, to recommend to the Prime Minister the rates for basic and additional Service pay, some allowances and charges for food and accommodation.

X-Factor

Army pay also includes an X-Factor determined by the AFPRB.  The X-Factor is a percentage increase to basic pay which reflects the difference between the conditions of service experienced by members of the Armed Forces and conditions in civilian life, which cannot directly be taken into account by the job evaluation process.   The X-Factor compensates for such things as, for example, being subject to military discipline, liability for duty at all times, the inability to resign at will, change jobs or negotiate pay, and the danger, turbulence and separation which are part of Service life. The X-Factor also considers some of the advantages of being in the Army, such as travel, adventure, the chance to learn a trade, variety, leave and job security.

Abatement

In determining Army pay, an abatement, i.e. a reduction, is made to take account of the relative benefits of the Armed Forces Pension Scheme (AFPS) compared to civilian pension arrangements.  This is not a direct contribution but an adjustment based on comparison of benefits.