Pay, Allowances & Money Matters
Pay on Mobilised Service
Reservists mobilised for service receive full time rates of Naval Pay. The pay of RNR/RM Reserves depends on their specialisation, rank and length of service. Some can also receive additional pay for skills such as flying or diving.
Remember that the Navy employs the Serviceman or woman, not their partner or spouse, so the Navy will not send partners a Service person's pay slip or give out details of personal allowances. However, anyone can ask to see general Naval pay scales.
The pay and allowances of the Armed Forces are reviewed regularly. Salaries are looked at each year by an independent Armed Forces Pay Review Body and are related as much as possible to wages in comparable jobs in civilian life, plus an 'X' Factor added to try and compensate for the special circumstances of service.
Web site: RNR Pay and Allowances
Downloadable File: Armed Forces Pay Review Body Report 2007 (PDF)
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Service personnel's salaries are paid directly into their bank accounts at the end of each month. A pay statement showing all earnings and deductions is sent each month to the service person. Any allowances due are also paid directly into his/her bank account.
Pay for RN/RM Reservist Undergoing Authorised Training
The part time training pay of RNR/RMR personnel depends on specialisation, rank or rate and length of service just as with a full time Service person.
A daily rate, based on full time Naval Pay, is worked out and then multiplied by the number of days, or part days, of training or reserve service done. Contact a RTC for these rates that are promulgated annually. This pay normally starts and finishes on the dates authorised by Directorate Naval Reserves for RNR and FLEET- Directorate Royal Marines for RMR. There is also an annual, untaxed, lump sum of several hundred pounds called a 'Bounty' paid in May each year to a reservist who is fully up to date with his or her training.
RNR/RMR Service personnel's salaries are paid directly into their bank accounts around the 15th day of the month and a pay statement showing all earnings and deductions are sent direct to the Reservist's home address or their RTC.
More Information: Royal Naval Reserve Training Centres
We know where you live...
If you live in Service Family Accommodation (Naval Family Quarter) you will be charged for rent and Council Tax that will be deducted from the salary of the serving person. Changes to the cost of quarters and garages are usually announced at the same time as changes in military salaries. In general wherever you are in the world you will pay the same for a similar type of quarter, except for different grading within actual house types.
Web site: Defence Estates Housing
Pensions on Mobilised Service
The options available will be outlined in your "call up" letter and advice is given when undergoing the mobilisation routine.
Allowances on Mobilised Service
Allowances are not designed for profit or as perks, neither are they to increase pay by other means but are to make sure that Servicemen and women get extra money if special circumstances demand it and which their salary doesn't cover. There are three types:
Compensation - for some financial disadvantage
Reimbursement - of additional expenses because of duty
Retention - to acknowledge particular or difficult conditions of service (which cannot be recognised by other pay or X-factor)
Recompense in Lieu of Relocation (RILOR)
RILOR is a non-taxable allowance, which provides assistance with the cost of daily travel from a private residence to an individual's place of duty, where full relocation expenses have not been claimed. The allowance is based on the actual distance travelled. Nine miles in each direction represents the personal contribution (deducted from any claim).
Travel between Residence and Place of Duty (RPOD)
RPOD is a non-taxable allowance, which provides assistance with the cost of daily travel from public accommodation to an individual's place of duty. It is based on the actual distance travelled, less the first 3 miles in each direction, which represents the personal contribution.
Travel and Subsistence Allowance
Expenses claimed when Service person is travelling on duty e.g. missed meals, overnight accommodation and, if she/he is driving a personal vehicle, Motor Mileage Allowance (MMA) within certain restrictions. When moving on postings/drafts, similar expenses can be claimed for the family.
If living in Service accommodation, which is some distance from the Establishment, the Service person may be able to claim an allowance to assist with the cost of travel to and from work. The allowance may also be payable to those who choose to live in private accommodation, but this depends on various other allowances, and is linked to a specific distance/time travelled.
Local Overseas Allowance (LOA)
When service personnel are posted overseas they may face bigger bills due to the higher cost of living in that country. To make sure that they are able to maintain their UK standard of living, a tax free, local overseas allowance is paid based upon detailed studies of the cost of such items as food, clothing, transport and household goods, compared to the UK.
As the cost of living changes, so does the amount of LOA, so do not commit yourself to financial agreements that depend on LOA.
Get You Home (Seagoers)
A voucher based allowance of 15 travel warrants per year for married personnel and 10 warrants per year for single personnel for travel to an authorised home base. The warrants may only be used whilst serving in a Long Service Sea Bonus (LSSB) payment unit for 30 days or more.
Harmony Warrants are in addition to GYH(S) for use when the ship is displaced from its base port for refit. This does not apply to ships in build. The entitlement is one warrant per month. Entitlement ceases when the ship ceases eligibility to LSSB (more than 12 months) when the individuals will become eligible for GYH(D).
Get You Home (Detached)
Paid to personnel sent on detached duty for less than 6 months where the detached duty is at least 20 miles from their Permanent Place of Duty/Residence at Place of Duty (RPD)/Selected Place of Residence (SPR). It provides financial assistance towards the cost of travel between an individual's temporary place of duty and permanent place of duty/living out address. The allowance is broadly equivalent to 2 return journeys per month for married personnel and 1 journey per month for singles. It is paid as a non-taxable daily rate through the pay account.
Get You Home (Posting)
Paid to married personnel serving unaccompanied on a permanent appointment/draft of over 6 months. It provides financial assistance towards the cost of travel between an individual's place of duty and home and is broadly equivalent to 2 return journeys per month. It is paid as a non-taxable daily rate through the pay account.
Get You Home (Early Years)
Voucher based allowance of 4 travel warrants per year during the individual's first 3 years of service (max 12 warrants) for travel between place of duty and an authorised leave address.
Get You Home (Stability Assistance)
Voucher based allowance of 3 warrants per year for individuals who have completed 3 years service and who are serving on a permanent UK shore appointment/draft. It is for travel between the unit and permanent home destination (ie. their own /rented property).
Married Unaccompanied Service Allowance
Designed to compensate for undertaking married unaccompanied service, during a permanent posting whilst a claimant's spouse and/or children reside in a Selected Place of Residence within a different theatre.
Travel Warrants for Families of Operationally Deployed Married RMs
While a married RM/RMR is on an operational deployment with an expected duration longer than 4 months, his family is entitled to 2 free travel warrants within UK to visit parents/parents-in-law or NOK address.
RNR/RMR Allowances During Training
Travelling Expenses Allowance (TE)
Reservists may be reimbursed for actual costs of travelling or may claim appropriate rates of mileage allowance for any reasonable distance to and from the unit for training. Return journeys of less than two miles do not qualify for TE.
Reservists who satisfactorily complete the minimum annual training commitment applicable to their designated Training List qualify for an annual tax free Bounty.
Income Tax and National Insurance Contributions
All Service personnel are liable for income tax, even when serving overseas, and tax returns should always be completed and returned promptly to the tax authority. Service personnel also pay National Insurance contributions and are therefore entitled to all relevant benefits such as Child Benefit.
Insurance is always a sound idea whether it is for your possessions, to protect your family's income (life insurance and/or invaliding cover), or to meet a whole range of possible liabilities but it needs balance. Not everything can happen to you and you don't want your whole salary tied up in insurance premiums!
The law requires you to insure your car and, if you have a mortgage on your house, the building society will probably require you to insure the property. Any other insurance is a matter of judgment. If you have dependants then you should certainly consider taking out a policy against being unable to work and provide for them.
The cost for £100,000 of cover for a 20-year-old non-smoker for a term of 25 years would be approximately £10 per month. Service personnel should be careful when taking out any form of insurance to make sure that cover is worldwide and includes operations such as those undertaken in support of UN and European Peacekeeping.
Insurance schemes, which might prove useful for some personnel, can be found at:
More Information: Financial - Insurance
When you are mobilised you may be on a better salary than your civilian salary or the things the Navy provides, such as food, uniform and allowances may make your disposable income higher, whilst costs at home reduce. So you may feel you can spend more. There is a temptation to spend more too on runs ashore, or paying for a partner to take holidays to visit, if it is a long overseas deployment. Be careful! Mobilisation does not last forever! It may in fact only be a matter of months. And getting into debt can be a worrying, even heartbreaking business.
Best advice, from those who have learned the hard way, is:
Always work to a budget
Avoid borrowing, except to buy a house or perhaps a car, and be very careful when buying on hire purchase, credit cards or credit schemes
Endeavour to build up some savings
Seek advice as soon as debts start to build up; the following can help
More Information: Financial - When things go wrong
More Information: RNcom Help Desk
More Information: NPFS & RM Welfare
More Information: Confidential Supportline
More Information: Naval Charities
Base your budget on basic pay; never depend on allowances - they could change or be paid late. Never spend money you haven't got.
There are some very useful ways of working out your budget explained in:
More Information: Financial - Budgeting Your Finances