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The salary potential for psychologists is of great interest to those who aspire to work in the field. In the case of the military, compensation is adjusted annually to keep pace with civilian salaries and to adjust for inflation. These figures are revealed at this time each year, as pay raises and allowances for the next year are set for all service members. In addition to pay and allowances, for professionals like psychologists, bonus opportunities also change each year.
With 2022 being a rough year in terms of inflation, salary and benefits take on greater importance for 2023. To address these challenges, the coming year will see an increase in military pay, allowances, and psychologist bonuses.
Military Basic Pay
All service members are receiving a 4.6 percent basic pay increase in 2023. Psychologists’ salaries are determined based on rank and how much time one has served. Psychology interns, fellows/residents, and direct accession psychologists enter the military as an O-3 (a Navy Lieutenant or Air Force or Army Captain). For 2023, psychology interns/fellows/residents and first-year direct accession psychologists will receive $58,200, up from $55,638 in 2022 basic pay. All service members receive a raise at 2, 3, and 4 years and then every two years after that, as well as in conjunction with promotions. As an example, the basic pay increase for an O3 who reaches their two-year anniversary in 2023 will be $7,776 annually.
Basic Allowance for Subsistence
The Basic Allowance for Subsistence (BAS) is an allowance designed to offset food prices. For all officers in 2023 BAS will be $3,740.16 annually, up from $3,363.48 in 2022. Military allowances are not taxed.
Basic Allowance for Housing
The Basic Allowance for Housing (BAH) has also gone up across the board to try to ease the financial stress of increased housing costs. Note that BAH is tied to the Zip code where you are stationed and so the increases are not uniform, but rather based on actual housing costs in a specific area. As an example, a single psychology intern/resident or psychologist who is an O3 and works at Madigan Army Medical Center in Tacoma, Washington will receive $30,564 in BAH in 2023 (up from $29,088 in 2022). A married O3 in that same location will receive $35,316 (up from $31,716 in 2022). Like the BAS, BAH is not taxed. BAH for specific areas may be found here.
To understand the general salary of a military psychologist, add up the basic pay, BAS and BAH. For example, an unmarried psychology intern or first year psychologist in Portsmouth, Virginia will receive $87,392 ($58,200 basic pay+$3,740 BAS+$25,452 BAH) in 2023, while someone in the same position in San Diego will receive $106,652 due to significantly higher housing costs there ($58,200 basic pay+$3,740 BAS+$44,712 BAH).
Additional Pay and Bonuses
In addition to the core military officer basic pay and allowances, there are a number of other pays and bonuses for which psychologists are eligible. Specifically, psychologists can earn two professional pays: incentive pay and board certification pay. Incentive pay, paid to licensed psychologists (interns/residents/fellows are not eligible) is $5,000 annually. Board certification pay is available to any military psychologist boarded in a specialty area of psychology practice by the American Board of Professional Psychology and is $6,000 annually.
Additionally, psychologists who are already licensed and join the military as a psychologist may opt to take a one-time lump sum accession bonus ($42,500 for a three-year commitment or $60,000 for a four-year commitment). Once psychologists are in the military and after their obligated service for training is completed, they are eligible for retention bonuses ranging from $15,000 (two-year commitment) to $40,000 annually (six-year commitment).
To finish this out, let’s calculate the pay of a psychologist who has been in for six years, is a married O4 (Navy Lieutenant Commander or Army or Air Force Major) and is stationed at Malcom Grow on Joint Base Andrews in Maryland. Basic pay will be $87,624; BAS will be $3,740; BAH will be $43,848. This psychologist is licensed and board certified and will thus receive $5,000 in incentive pay and $6,000 in board certification pay. Additionally, they opted for the 6-year retention bonus which adds another $40,000 annually to their income. Adding this up, this psychologist would make $186,212 in 2023.
Additional Benefits
In addition to pay, allowances, and bonuses, service members receive other employment benefits. All service members receive health insurance, a 401K-like retirement plan, a pension if they serve for 20 years or more, the GI Bill, paid leave, tax benefits, loan repayment after 10 years of service, and additional pay for some duties (e.g., sea duty, duties involving flight, etc.).
