When reservists get put on active duty, how do they make up the pay difference?

SPC(P) Private RallyPoint Member — Thu, 15 Sep 2016 14:47:54 -0400

Example I make 3x's more at my civilian job than I do E-4 active duty... What would happen if I get activated and can't pay my bills because of this?

Response by SFC Christopher Perry made Sep 15 at 2016 2:51 PM

SFC Christopher Perry — Thu, 15 Sep 2016 14:51:15 -0400

Unfortunately, this is the reality of deciding to go reserves. One must plan for the realities.

Response by SFC Christopher Perry made Sep 15 at 2016 2:54 PM

SFC Christopher Perry — Thu, 15 Sep 2016 14:54:55 -0400

When I made the choice to go back we took a massive pay cut. My wife and I both had really good jobs. Well, that and the fact that I had been out for fifteen years so I came back in as a PV2. Trust me we adapt to the circumstances our choices bring about.

Response by CW5 Private RallyPoint Member made Sep 15 at 2016 3:31 PM

CW5 Private RallyPoint Member — Thu, 15 Sep 2016 15:31:52 -0400

I hate to be blunt but if that possibility is not tenable for you and your family then you need to leave the reserve component. You can continue to play the odds or move on.

Response by SFC George Smith made Sep 15 at 2016 6:44 PM

SFC George Smith — Thu, 15 Sep 2016 18:44:29 -0400

most interesting...
when i went from my civilian Job back to Active Duty i made almost 3 times as much as just an E-5... with Jump pay and BAS/BAQ

Response by Maj Marty Hogan made Sep 15 at 2016 8:40 PM

Maj Marty Hogan — Thu, 15 Sep 2016 20:40:18 -0400

Sadly there is not much you can do- hardship based on financial situation doesn't sway the decision much either. When 9/11 kicked off and we activated many farmers in our area- they didn't care of they had fields to clear or made most of their yearly income from that harvest. You signed on the dotted line. If you used educational benefits- you may be required to stay until your commitment is up as well.

Response by SPC Erich Guenther made Sep 15 at 2016 9:03 PM

SPC Erich Guenther — Thu, 15 Sep 2016 21:03:18 -0400

You have another option and that is to find an employer that offers differential pay as part of their military leave package. Have you checked with your current employer? They might do so. Some employers will cover the difference between your GUARD/RESERVE pay and your Civilian Pay while you are deployed...........the benefit is called "differential pay".

Additionally, you should as a matter of good financial planning have an Emergency Fund set aside that covers 7-8 months unemployment versus living paycheck to paycheck. That combined with your Guard / Reserve pay should also cover 12 months.

Response by SSG Private RallyPoint Member made Sep 15 at 2016 10:46 PM

SSG Private RallyPoint Member — Thu, 15 Sep 2016 22:46:46 -0400

If you deploy, you can appeal to your creditors to reduce your interest rate under the Servicemembers Civil Relief Act (SCRA). Also, suspend unnecessary accounts or have the services reduced since you won't be there to use them, as in reduce the insurance on your cars and reduce your phone data plans.

http://www.militaryonesource.mil/pfm?content_id=272410

Response by MSG Private RallyPoint Member made Sep 16 at 2016 12:02 AM

MSG Private RallyPoint Member — Fri, 16 Sep 2016 00:02:37 -0400

Bro, you seam like a really smart guy, have you considered commissioning? That should equal things out for you, if and when you get deployed.

Response by SFC Joseph Weber made Sep 16 at 2016 10:08 AM

SFC Joseph Weber — Fri, 16 Sep 2016 10:08:25 -0400

Deliver pizzas at night. Reserves is a sacrifice for many.

Response by LTC John Shaw made Sep 16 at 2016 10:53 AM

LTC John Shaw — Fri, 16 Sep 2016 10:53:24 -0400

There is no fix, you accept the risk.

Response by CPT(P) Private RallyPoint Member made Sep 16 at 2016 7:10 PM

CPT(P) Private RallyPoint Member — Fri, 16 Sep 2016 19:10:36 -0400

I'm an Attorney in my civilian career and recently became a 2LT. I've thought about this quite often and realized that I'll probably have to use some of the SCRA protections to get out of my lease and lower my student loan interest while I'm gone.. The best way to protect yourself is to have a plan of action in place before you're activated.

Response by SGT Alan Dike made Sep 17 at 2016 6:57 PM

SGT Alan Dike — Sat, 17 Sep 2016 18:57:47 -0400

It wholly depends on the company you work for... For example, Varen Technologies pays the difference (or did when I worked there), others leave you on your own. Speak with your Mortgage company, etc. and explain the situation and see if they can work with you. Most can, and I guarantee you they have encountered this situation before...

Response by Lt Col Private RallyPoint Member made Sep 18 at 2016 11:08 AM

Lt Col Private RallyPoint Member — Sun, 18 Sep 2016 11:08:44 -0400

My suggestion would be look at becoming an officer. By the tie you make Captain you would be an O3-E and you were activated chances are that your pay would be fairly close. As an officer my pay was actually more at the end of the day due to all of the tax free stuff then my civilian job even thought I technically made more money as a civilian. It is an eye opener when you realize how much of your paycheck goes to taxes when you have a civilian job over how much you keep, such as BAH, BAS and in some states no state tax on mil pay.

Otherwise like others have said you are screwed. Your only choice would be to put money aside in savings and have a plan to scale down your expenses if you were to get activated. If you are renting a 2000 dollar a month super hip loft in pioneer square or Cap Hill you may need to unrent that and move your family to Spannoway while deployed.

Response by LCDR Private RallyPoint Member made Sep 20 at 2016 7:48 AM

LCDR Private RallyPoint Member — Tue, 20 Sep 2016 07:48:49 -0400

Find an employer that pays the difference as a benefit, save up to be able to ride the financial storm when you go active, or live life aso if you are making that much less and invest the rest.

Response by LTC Charles T Dalbec made Sep 20 at 2016 8:15 AM

LTC Charles T Dalbec — Tue, 20 Sep 2016 08:15:52 -0400

Unfortunately there is no additional resource fir monies other than the BAS and BAH that you may qualify to receive. Check into how much those tax free allowances my pay before you file for food stamps.

Response by COL Private RallyPoint Member made Sep 20 at 2016 8:42 AM

COL Private RallyPoint Member — Tue, 20 Sep 2016 08:42:25 -0400

You don't. You volunteered to serve in the Army Reserve and with that accepted the pay and benefits associated with your rank. If you earn more in your civilian career, that is great. If your employer pays differential pay (difference between military pay and your civilian career pay), that is excellent. Otherwise, you earn what you earn on Active Duty, accept and live on the reduced pay, maintain two houses (because unlike the 'real Army' Active Duty types, you don't PCS and you do not get accompanied tours). The alternative is to pick one career and quit the second. It is, afterall, a voluntary force.

Response by SSG Kevin Wells made Sep 20 at 2016 8:44 AM

SSG Kevin Wells — Tue, 20 Sep 2016 08:44:07 -0400

Having deployed half a dozen times while in the Guard, I thoroughly understand this issue. That said, don't compare gross pay. Once activated to Title 10, all sorts of nice little extras kick in. BAH, haz pay, flight pay (if applicable) etc. In most cases those are tax free. That is a deployment into a non combat theater. Go to a combat theater and now your gross becomes you NET. Even when I left for schools, it usually worked out that my NET was close to what I netted at work even the the gross pay was 2.5 times more. Add in the benefits of lowered interest rates (only applies to accounts your name is on, anything your spouse has without your name on it, does not have to comply) and now your bills drop and in some cases could suspend all together. Now your living good and wondering how you can stay on active duty.

Response by CH (COL) Private RallyPoint Member made Sep 20 at 2016 8:49 AM

CH (COL) Private RallyPoint Member — Tue, 20 Sep 2016 08:49:12 -0400

Some employers make up the difference. In most cases though, you are just out of luck and Uncle Sam gives you a big thank you.

Response by MAJ Private RallyPoint Member made Sep 20 at 2016 9:26 AM

MAJ Private RallyPoint Member — Tue, 20 Sep 2016 09:26:50 -0400

Many companies offer a differential pay to offset the difference. My company is smaller and I'm the only current reservist, so I helped HR draft the policy and they implemented it. May be worth asking your leadership or HR about at your company.

Response by Capt Private RallyPoint Member made Sep 20 at 2016 12:15 PM

Capt Private RallyPoint Member — Tue, 20 Sep 2016 12:15:02 -0400

I would challenge you to verify if it's actually going to be 3x's different. What I mean is, don't forget to account for the discounted insurance, BAH (assuming you are activated more than 30 days), family separation pay (assuming you are away from your family), etc...

Response by PO1 Donald Vinson made Sep 20 at 2016 5:14 PM

PO1 Donald Vinson — Tue, 20 Sep 2016 17:14:46 -0400

If you are making more than $6000 a month (3x's base pay) at your civilian job, I would suggest detaching from the military. I can understand that it will be hard, but serving your country is all about sacrifices. I think you should look at all of your entitlements you would receive if you are getting deployed overseas. Wish you luck on making a difficult decision.

Response by SGM Mikel Dawson made Sep 20 at 2016 8:06 PM

SGM Mikel Dawson — Tue, 20 Sep 2016 20:06:12 -0400

You suck it up. The last many years of my Reserve career I was self employed. When I was deployed Dec 95 - Sep 96, it took about two years to get my business back on track. I made good money(tax free), but my wife didn't plan for the lull in business when I got back, so I ended up loosing my van, and almost our place. The next time I deployed in 2001 for 6 months we were better prepared, yes it took about two years to get my business going again, but she learned not to go hog wild in spending and save. The last time from Jan 2003 - Apr 2004 it took longer, about 3.5yrs to get my business back, but we were sitting good as lessons were learned.
If you're in the Reserve to make money, you're in the wrong job. You need to learn to plan for the time. Maybe while on Reserve duty now, save all your reserve pay for back up, just in case.
Also if you live in the States and work for American employers, there is the Soldiers, Sailors Civilian Relief Act. You need to read up on it and be informed: http://www.military.com/benefits/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html

SCRA: Servicemembers Civil Relief Act Overview

The SCRA provides protections for individuals entering, called to active duty in the military, or deployed servicemembers.

Response by SSG(P) Brian Kliesen made Sep 20 at 2016 8:51 PM

SSG(P) Brian Kliesen — Tue, 20 Sep 2016 20:51:42 -0400

In most cases, there is no way to make up the difference. There are some programs available if you are a federal or state employee, but there are some very specific rules that may not apply to you. Mainly only large companies will provide 'differential pay' and only a few will maintain your current insurance or retirement. You can qualify for some programs to lower your credit card interest, get out of a lease, lower or defer your student loan payments, but in general you don't make up the pay difference. BAH for a CONUS assignment might only be 55% or lower. BAS, Family separation pay, combat pay, etc., might not apply or be lower than expected. I went from a federal job as a firefighter making $60,000 a year plus hazard pay and overtime to an E-5 at Fort Hood where my net was around $21,000. My wife and kids moved in with her Mom, I sold everything I could and lived on discount food and didn't go out or do anything for 90% of the mobilization. I sold plasma every week and did odd jobs on weekends for extra money, went to the monthly 'pay day' dinners at the local VFW and on post, and lived in a shitty little apartment with no phone, internet or TV, all to save money. This is why active duty or activated soldiers so often qualify for food stamps, WIC assistance or other programs. If you are single, can play the system, and live on a budget, you can survive, but it is tough.

Response by SGT David A. 'Cowboy' Groth made Sep 21 at 2016 5:57 AM

SGT David A. 'Cowboy' Groth — Wed, 21 Sep 2016 05:57:43 -0400

Some places that you are dealing with might have lower payment plans, it would take longer to pay off the debts.

Response by LTC Private RallyPoint Member made Sep 21 at 2016 10:57 AM

LTC Private RallyPoint Member — Wed, 21 Sep 2016 10:57:58 -0400

It's employer dependent large companies and government jobs will pay the difference of lost pay. I had that offer when I got mobilized. It's PR for them. I don't know what happens to small and mid-size companies depends on if they can afford it. Also, how important in keeping you on after being mobilized. I know there are laws to protect your job but, can they afford to pay while gone.

Response by MSgt Private RallyPoint Member made Sep 21 at 2016 11:11 AM

MSgt Private RallyPoint Member — Wed, 21 Sep 2016 11:11:22 -0400

My civilian employer makes up the difference. They do not have to though.

Response by SSgt Private RallyPoint Member made Sep 21 at 2016 7:00 PM

SSgt Private RallyPoint Member — Wed, 21 Sep 2016 19:00:41 -0400

I don't have that problem. Active duty E-5 with 5 years TIG, plus with BAH makes about half again more than I do per year.

Response by PO1 Ron Higgins made Sep 22 at 2016 5:03 PM

PO1 Ron Higgins — Thu, 22 Sep 2016 17:03:06 -0400

If you get activated and are married and have rent or mortgage you will receive separation pay, housing allowance, depending on where you are sent there is also immenent danger pay. When I was activated in 91 I made more in my civilian job. but what I was getting while activated I did very well and you only get taxed on base pay

Response by SSG Ray Elliott made Sep 22 at 2016 10:43 PM

SSG Ray Elliott — Thu, 22 Sep 2016 22:43:11 -0400

I was fortunate enough during my reserve time to not have to deal with this, but I don't think there is much in the way of help, other than possibly explaining the situation to creditors, and asking them to suspend payments, or make interest only payments, while you're activated.

Response by MSgt Keith Hebert made Sep 25 at 2016 10:32 PM

MSgt Keith Hebert — Sun, 25 Sep 2016 22:32:34 -0400

have 5-6 months of money to take care of your expenses
plan ahead because it will happen

Response by LTC Stephen B. made Sep 26 at 2016 11:38 AM

LTC Stephen B. — Mon, 26 Sep 2016 11:38:45 -0400

The military can provide replacement income, but this is only for "extended and frequent" calls to active duty - Title 37 US Code Section 910. Currently expires Dec 31, but has been extended each year in the NDAA since it was originally enacted. No guarantees, however....

§910. Replacement of lost income: involuntarily mobilized reserve component members subject to extended and frequent active duty service
(a) Payment Required.-The Secretary concerned shall pay to an eligible member of a reserve component of the armed forces an amount equal to the monthly active-duty income differential of the member, as determined by the Secretary, when the total monthly military compensation of the member is less than the average monthly civilian income of the member. The payments shall be made on a monthly basis.
(b) Eligibility.-
(1) A member of a reserve component is entitled to a payment under this section for any full month of active duty of the member, when the total monthly military compensation of the member is less than the average monthly civilian income of the member, while the member is on active duty under an involuntary mobilization order, following the date on which the member-
(A) completes 547 continuous days of service on active duty under an involuntary mobilization order;
(B) completes 730 cumulative days on active duty under an involuntary mobilization order during the previous 1,826 days; or
(C) is involuntarily mobilized for service on active duty for a period of 180 days or more within 180 days after the date of the member's separation from a previous period of active duty for a period of 180 days or more.
(2) The entitlement of a member of a reserve component to a payment under this section also shall commence or, if previously commenced under paragraph (1), shall continue if the member-
(A) satisfies the required number of days on active duty specified in subparagraph (A) or (B) of paragraph (1) or was involuntarily mobilized as provided in subparagraph (C) of such paragraph; and
(B) is retained on active duty under subparagraph (A) or (B) of section 12301(h)(1) of title 10 because of an injury or illness incurred or aggravated while the member was assigned to duty in an area for which special pay under section 310 of this title is available.
(3) A civilian employee of the Federal Government who is also a member of a reserve component is not entitled to a payment under this section for any period for which the employee is entitled to-
(A) a differential payment under section 5538 of title 5; or
(B) a comparable benefit under an administratively established program for civilian employees absent from a position of employment with the Federal Government in order to perform active duty in the uniformed services.
(c) Minimum and Maximum Payment Amounts.-
(1) A payment under this section shall be made to a member for a month only if the amount of the monthly active-duty income differential for the month is greater than $50.
(2) Notwithstanding the amount determined under subsection (d) for a member for a month, the monthly payment to a member under this section may not exceed $3,000.
(d) Monthly Active-Duty Income Differential.-For purposes of this section, the monthly active-duty income differential of a member is the difference between-
(1) the average monthly civilian income of the member; and
(2) the member's total monthly military compensation.
(e) Definitions.-In this section:
(1) The term "average monthly civilian income", with respect to a member of a reserve component, means the amount, determined by the Secretary concerned, of the earned income of the member for either the 12 months preceding the member's mobilization or the 12 months covered by the member's most recent Federal income tax filing, divided by 12.
(2) The term "total monthly military compensation" means the amount, computed on a monthly basis, of the sum of-
(A) the amount of the regular military compensation (RMC) of the member; and
(B) any amount of special pay or incentive pay and any allowance (other than an allowance included in regular military compensation) that is paid to the member on a monthly basis.
(f) Regulations.-This section shall be administered under regulations to be prescribed by the Secretary of Defense.
(g) Termination.-No payment shall be made to a member under this section for months beginning after December 31, 2016, unless the entitlement of the member to payments under this section commenced on or before that date.

Response by SSG Private RallyPoint Member made Oct 4 at 2016 1:42 PM

SSG Private RallyPoint Member — Tue, 04 Oct 2016 13:42:38 -0400

Read ar 37 104 4 chapter 33

Response by SSG Edward Tilton made Jan 12 at 2018 8:31 PM

SSG Edward Tilton — Fri, 12 Jan 2018 20:31:09 -0500

They don't