How Much Was Combat Pay in Vietnam?

The Vietnam War era, spanning roughly from 1964 to 1975, presented unique challenges for American service members. During this period, special financial provisions were implemented to acknowledge the hazardous nature of military service in a combat zone. These forms of compensation aimed to supplement a service member’s basic pay, recognizing the extreme conditions and risks faced.

Understanding Combat Compensation

During the Vietnam War, specific forms of special pay compensated service members for the inherent dangers and hardships of the combat environment. Hostile Fire Pay (HFP) was one such provision, reauthorized in 1963 to recognize those routinely exposed to hostile fire or mine explosions. It provided compensation for individuals directly engaged with enemy forces or in direct support of such engagements.

Another form of compensation was Imminent Danger Pay (IDP), which later largely encompassed HFP, though they are derived from the same statute and cannot be received simultaneously. IDP was designed for service members on duty in foreign areas where they faced the threat of physical harm due to civil insurrection, civil war, terrorism, or wartime conditions. Additionally, Hardship Duty Pay – Location (HDP-L) addressed the extraordinary arduous living conditions and unhealthful environments found in designated overseas locations.

Specific Pay Rates During Vietnam

During the Vietnam War, service members received specific monthly amounts for these special pays, which augmented their basic salaries. Hostile Fire Pay (HFP) was reauthorized in 1963 at a rate of $55 per month. This rate remained consistent for much of the conflict.

Hardship Duty Pay – Location (HDP-L) was another component of compensation. Generally, HDP-L rates were established in increments, ranging from $50, $100, or $150 per month, based on the severity of living conditions in a designated area. These payments were in addition to a service member’s regular basic pay, which varied by rank and years of service. For instance, a Marine Private First Class in 1967 might have received $185 in base pay, plus $10 for overseas pay and $60 in combat pay.

Combat Zone Tax Exclusion

While not a direct payment, the Combat Zone Tax Exclusion (CZTE) significantly increased the net take-home pay for service members in Vietnam. This provision exempted certain military income earned in a designated combat zone from federal income tax. For enlisted personnel, warrant officers, and commissioned warrant officers, all military pay earned in a month while serving in a combat zone was excluded from federal taxation.

For commissioned officers, the amount of excluded income was limited to the highest rate of enlisted pay, plus the amount of hostile fire or imminent danger pay. This exclusion applied to basic pay, hostile fire/imminent danger pay, reenlistment bonuses, and pay for selling back accrued leave, provided these were earned during a month spent in the combat zone. Even a single qualifying day in a combat zone during a month meant that the pay for the entire month could be excluded from taxable income. The CZTE provided a substantial financial benefit.

Eligibility and Conditions

Eligibility for combat pay and tax exclusions during the Vietnam War depended on specific criteria related to service in designated areas and exposure to hazardous conditions. A combat zone was defined by an Executive Order from the President, designating areas where U.S. Armed Forces were engaged in combat. For the Vietnam War, the combat zone designation was active from February 28, 1961, until May 7, 1975, for tax purposes.

To qualify for Hostile Fire Pay (HFP), a service member needed to be exposed to hostile fire or mine explosions, be in a unit engaged in hostile action, or be killed, injured, or wounded by hostile action. Imminent Danger Pay (IDP) applied to those on duty in foreign areas subject to physical harm due to wartime conditions, civil insurrection, or terrorism. For Hardship Duty Pay – Location (HDP-L), eligibility required assignment to areas with substantially below-standard living conditions for over 30 consecutive days. If a service member was entitled to HFP or IDP, the maximum amount of HDP-L they could receive was reduced.