How Much Does the Army Pay for Leave Days?

Military service members accrue leave days, which represent a paid entitlement earned throughout their period of service. Understanding how these days are financially managed, whether utilized or left unused, holds significance for a service member’s financial planning. This includes clarity on how pay and allowances continue during periods of absence and the financial implications of leaving service with accrued leave.

Understanding Leave Accrual and Payment for Used Leave

Service members in the Army earn leave at a consistent rate of 2.5 days for each month of active duty, culminating in 30 days of annual leave over a fiscal year. This accrual begins from the initial day of service. Soldiers can carry over a maximum of 60 days of unused leave from one fiscal year into the next. Any days exceeding this 60-day limit are forfeited at the start of the new fiscal year, which is October 1.

When a service member takes approved regular leave, their financial compensation continues without interruption. They receive their full active duty pay and allowances, which encompass base pay, Basic Allowance for Housing (BAH), Basic Allowance for Subsistence (BAS), and any applicable special or incentive pays. This means their regular income stream remains the same as if they were performing their duties. Army Regulation 600-8-10 outlines the policies governing these leaves and passes.

This continuity of full pay and allowances during leave ensures that service members can take time for rest, recuperation, or personal matters without experiencing a reduction in their regular earnings. The leave system is designed as a paid absence, allowing for financial stability during periods away from duty. Soldiers are responsible for monitoring their leave balances, which are accessible through their Leave and Earnings Statement (LES).

In situations involving operational requirements that prevent leave usage, service members may qualify for Special Leave Accrual (SLA). This provision allows for carrying over more than the standard 60 days, typically up to a combined total of 90 days (60 ordinary leave plus 30 SLA-protected leave). These additional days cannot be sold back and are forfeited if not used by their expiration date.

Selling Back Unused Leave

Upon separation or retirement from military service, Army members have the option to receive a monetary payment for a portion of their unused leave days. This process, often referred to as “cashing in” or selling back leave, provides a lump-sum payment for accrued time not taken. Federal law, 37 U.S. Code 501, authorizes this entitlement for service members discharged under honorable conditions.

There is a career-long limitation on the number of days that can be sold back, which is typically capped at 60 days. This means that a service member cannot receive payment for more than 60 days of unused leave over their entire military career, regardless of how much leave they may have accrued. Any days previously sold back, such as during reenlistment, reduce this 60-day lifetime limit.

The payment for sold-back leave is calculated based solely on the service member’s basic pay at the time of separation. Each day of leave sold is valued at 1/30th of the service member’s monthly basic pay. This payment does not include any allowances such as Basic Allowance for Housing (BAH) or Basic Allowance for Subsistence (BAS), nor does it include special or incentive pays.

This lump-sum payment is subject to income taxes. Federal taxes are typically withheld at a rate of 25%, and state taxes may also apply depending on the service member’s state of residence.

Terminal Leave Payouts

Terminal leave refers to the period of accrued leave that a service member takes immediately before their official separation or retirement date from military service. This form of leave allows individuals to transition out of the military while still receiving their active duty entitlements. During terminal leave, the service member remains on active duty status, even though they are no longer reporting to their duty station.

Service members continue to receive their full military compensation package throughout the terminal leave period. This includes their base pay, Basic Allowance for Housing (BAH), Basic Allowance for Subsistence (BAS), and any other special or incentive pays. This comprehensive payment distinguishes terminal leave from selling back unused leave, as the latter only compensates for basic pay.

The duration of terminal leave is limited by the total number of accrued leave days a service member has available. Approval for terminal leave is subject to command discretion and unit operational requirements.

Taking terminal leave provides a valuable buffer for service members transitioning to civilian life, offering continued income while seeking employment, relocating, or attending to personal matters. This option is often weighed against the choice to sell back leave, with the decision depending on individual financial needs and post-service plans.