How to Calculate Military Severance Pay
- 1). Ensure your separation package is complete. You will need your DD-220 active-duty report, paperwork indicating your discharge status, paperwork indicating whether your superiors believed you were promotable and your date of discharge.
- 2). Determine whether you are eligible for full or half pay. A military member who is being involuntarily separated from service who is otherwise in good standing and fully promotable will receive full pay. Military members with general or medical discharges or members who may not have been promotable will probably receive half pay.
- 3). Find the regular monthly pay for your rank at the time of your separation on the Defense Finance and Accounting Service's military pay tables (see Resource).
- 4). Count your years of service, including full months as fractions of a year. Multiply this number by your regular monthly pay from the previous step.
- 5). Multiply the number from the previous step by 12, then by 10 percent. If you are anticipating half pay, divide the number by 2. Your result is the amount of military severance pay you can anticipate before taxes.
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