People who join the Military are offered a specific amount as a bonus when they Enlist (Accept to Join for the first time) or Reelist (Join the Military again). However, this does not mean that the enlistment and reenlistment benefits apply to everyone who joins the Military. This article will serve as a guide to help you know all that you need regarding enlistment and reenlistment bonuses provided by military personnel. Here we will see about Enlistment Reenlistment Bonus Guide
You are bound to get the enlistment and reenlistment bonus only if it is mentioned in a written agreement or contract. Any verbal confirmation is not to be considered a concrete one. The contract will mention how much will be paid.
Enlistment And Reenlistment Bonus
Often the enlistment and reenlistment bonuses are rolled out as positions in the Military are not easy to fill. The main reason behind them is that these positions involve a lot of physical and mental training. Not people opt for enlisting only for patriotic reasons.
When it comes to the enlistment bonus, the amount can go up to $40,000. Even that is not a confirmed amount each time. Many things like a branch, job specialty, and the tenure of the enlistment are to be considered when the bonus is fixed.
There are two main and important things to note. The first is the amount of compensation, if promised, will depend on the tenure. The bonus for a three-year term will pay lesser than a six-year tenure. The other important factor is that the bonus is confirmed only after finishing the training.
How Does The Reenlistment Bonus Work?
The reenlistment bonus, too, works on a somewhat similar concept as that of enlistment. There are a few additions to the terms and conditions, however. The primary requirement is that the person has finished at least one period of a minimum of three years with the uniformed service.
Another essential requirement is that your work profile or positions should have reenlistment bonuses. It is also vital that the reenlistment is at least for three years. The other factor that is important regarding the reenlistment bonus being applicable is that the reenlisted personnel shouldn’t be getting any nuclear-training pay. Also, the maximum bonus amount a reenlisted personnel can get is about $90,000.
How The Bonus Will Be Paid
It is essential to know how the bonuses will be paid out in case you are eligible to get a bonus while getting enlisted or reenlisted. Two scenarios will ultimately decide how much and how soon will you be paid with the enlistment and reenlistment bonus.
The two circumstances are explained below:
When The Bonus Amount Is Less Than $20,000.
If the bonus mentioned on your contract is below $20,000, the bonus will be paid out to you in a lump sum once you have finished your initial technical training.
When The Bonus Amount Is More Than $20,000.
In cases where the mentioned bonus amount exceeds $20,000, half of the bonus amount is paid after completing the initial training. At the same time, the remaining bonus amount is paid off in the form of annual installments.
As a rule, personnel in the Navy can expect their annual bonuses to be paid out on October 1. However, regarding other branches of the service, the day of the payment would be one year after your first payment.
Are These Bonuses Tax-Exempt?
It all narrows down to where you signed the paperwork for the enlistment or reenlistment. If the paperwork is signed when in the combat zone, the bonuses received per the contract are tax-exempt.
On the other hand, if the enlistment or reenlistment paperwork is signed when the person was not in the combat zone, then the bonuses as mentioned in the contract will not be tax-exempt.
Enlistment And Reenlistment Bonus Are Applicable On Which Jobs?
Enlistment and reenlistment bonus are fixed to a particular role in any military branch. The rank or specialty eligible for bonus changes almost every year. To get a clear picture of which ranks and specialties are eligible, it is best advised to check with the retention office. Also, a recruiter can provide you with such details upon asking.
Conclusion
Providing bonuses when a person agrees to enlist or reenlist to join the uniformed service is a great way to motivate people to come forward for the country. Since it is not an easy job being in any branch of the MilitaryMilitary, providing something to look forward to increases the number of people coming ahead and getting themselves enlisted or reenlisted.
Frequently Asked Questions
What if I was promised a bonus on papers but have not received it?
Ans: In such a case, it is best for your Human Resource team or the Retention office.
Can I put my bonus amount in a savings plan?
Ans: You can put some or all of your bonus amount into a thrift savings plan. You need to ensure that you do not cross the TSP limitations.
