How Does the Military Compare to Civilian Pay for Psychologists?

If you are considering a career in the military as a clinical psychologist, it is only natural that you would wonder about salary. This blog will present the various aspects of military psychologist pay and benefits as well as compare these to the civilian sector.

The U.S. military: sometimes it is this fun and sometimes you sleep on the ground.

Source: Larkin Magel, by permission

Over the past couple of decades, the military in general has seen regular annual pay raises, designed to close a military-civilian wage gap. Currently (CY 2021), a first-year psychologist or psychology intern makes $54,176 annually in basic pay (for the military pay charts, go here). On top of basic pay, all service members receive both a food allowance (Basic Allowance for Subsistence or BAS) and a housing allowance (Basic Allowance for Housing or BAH). BAS is the same for all officers, specifically $3,194 annually, and BAH varies depending on rank, geographic location (i.e., cost of living), and whether or not that psychologist has dependents (for BAH rates for specific locations, go to this calculator). As two examples: a first-year psychologist or intern going to San Diego, CA will receive $37,224 BAH if they have no dependents (so $94,594 total annual income) or $39,456 if they have dependents (e.g., spouse, child; $96,826 annual income). That same psychologist or intern in Portsmouth, VA, due to lower cost of living, would receive $21,960 BAH if they have no dependents ($79,330 annual earnings) and $24,048 with dependents ($81,418 annually). It is notable that allowances are not taxed (basic pay is taxed).

Wait, Wait, but That’s Not All

In addition to the regular salary afforded to all military officers, psychologists can earn a number of special pays. In 2009, given increased demands for military psychologists, a number of special pays for clinical psychologists were implemented. Board certification pay was increased to $6,000 annually and licensed psychologists started receiving $5,000 incentive pay annually. Retention bonuses now range from $10,000-$35,000 annually depending on how many years are committed to (i.e., two to six years). Thus, a first-year, married psychologist, who comes in with a license, is stationed in the Washington, DC area and commits to four years in the military (i.e., $20,000 bonus) will make $120,278 annually, with $41,102 of that not taxed (i.e., BAH + BAS).

No, Seriously, There’s More

In addition to decent basic pay and special pay, raises are given routinely. Psychologists are guaranteed a raise at two years ($7,236 in 2021), three years, four years, and then every two years after that. With every promotion comes another raise and a corresponding increase in BAH. Thus, a psychologist with dependents who is stationed in, let’s say, Chicago, IL who has been in for eight years and has earned the rank of O4 (that’s a Lieutenant Commander in the Navy or a Major in the Air Force and Army), makes $86,304 in basic pay, $3,194 in BAS, and $33,264 in BAH. That’s a total of $122,762 which does not include incentive pay (add $5,000) board certification pay (add $6,000) and retention bonuses (let’s go with a $15,000 annual bonus for a three-year commitment for this exercise). So that psychologist would be making $148,762 with eight years of experience.

Anything Else? Why Yes, I’m Glad You Asked.

Have I mentioned that military psychologists (all military officers) get free health care for both themselves and their families, funded moves for every duty station change, 30 days of paid leave annually, access to the commissary (groceries cost an average of 30% less than in standard grocery stores), a retirement pension, and can participate in the Thrift Savings Plan which provides a match? Ten years of military service qualifies active duty psychologists for loan forgiveness. Military service also provides the Montgomery GI Bill with which you can pursue additional education while serving (e.g., Master’s of Science in Clinical Psychopharmacology; Master’s of Business Administration). For licensed psychologists coming into the military, there are also opportunities for an accession bonus or loan repayment.

So, How Does the Military Stack Up Against Civilian Pay for Clinical Psychologists?

A completely nonsystematic Google search revealed that interns are currently receiving about $30,000 for an annual stipend. So, that’s easy math – even in a low cost of living area – military interns are making at least $45,000 more.

For licensed psychologists, according to the Bureau of Labor Statistics, the median annual income for clinical, counseling, and school psychologists in 2019 was $78,200 with the top 10% of psychologists earning over $132,670. So, are military psychologists doing okay compared to civilians?

Simply put, junior (early career) psychologists in the military who sign up for a retention bonus start earning on the high side of the civilian range almost immediately.

One Last Thing

Highly relevant is the impartiality and transparency of the military pay system. A salary study conducted by Lin, Christidis and Stamm (2017), found numerous disparities in psychologists' pay across diverse groups. Notably, Psy.D.s made $10,000 less annually than Ph.D.s; women made $11,000 less than men; and members of ethnic/racial minority groups on average made $17,000 less than whites. These kinds of disparities do not exist within the military pay structure as there is no such thing as a salary negotiation and salaries are the most transparent of any organization (see the links previously provided in this article).

So, if you have a high degree of flexibility; if you like staying in good physical shape; if getting to live in multiple locales both within the U.S. and overseas sounds exciting; and you think working with service members is the best thing there is… the military outshines the civilian remuneration of most psychologists. Learn how to become a military psychologist here.

This is an updated article that also appeared in The Military Psychologist in 2019. Copyright Carrie Kennedy.