Part of the “problem” is that much military pay is “hidden”. An e-6 at 12 years makes $55.6k. That is very low compared to the private sector. However, basic allowance for housing (BAH) for an E6 with dependents is another $20-40k, so let’s call it $30k. Finally there is retirement. Retirement is harder to calculate, but traditionally if you reach 20 years then you get half your pay for the rest of your life as soon as you leave the military. An E6 @20 would get almost $30k/year, which will automatically increase with inflation. If you retire at 39 (enlisted at 19) and live to 80 you get $1.2M in inflation adjusted payments. The net present value of that is not something I know how to rigorously calculate, but $1M seems in the ball park. That’s an additional $50k/year over a 20 year career if you make it.

That means if you are a 12 year E6 and plan to stay in to 20 your real total comp is closer to $130k/year, and that’s not including BAS, retention bonuses, and other compensation. And it excludes tricare and other VA benefits post retirement.

The total potential compensation for military personnel is far more comparable than it looks, but is heavily weighted to non-cash compensation.

* Apologies if I’m being too pedantic here to much, but I wanted to make sure people who aren’t familiar with the subject can understand what I’m getting at as well.