TN 41 (04-24)

RS 01404.225 Establishing Military Wages Based on Proof of Military Service

A. Policy - Evidence of Military Service being used in lieu of Evidence of Wages

Apply the following guidelines only when evidence of military service is being used in lieu of evidence of wages as a result of development in RS 01404.215 and RS 01404.220.

1. Evidence

Follow the guidelines in RS 01404.220.C and RS 01701.005 for evaluating the evidence of the military service and to determine whether it is sufficient for use in establishing military wages.

2. When Not to Establish Periods of Military Service

Do not establish wages for any period of military service the military member was not paid wages.

If the service member was absent without leave (AWOL), the DD214 or similar document should include a remark showing the time lost and appropriate citation such as Articles 85 or 86 of the Uniform Code of Military Justice (UCMJ) or the Article of War (AW) 107.

3. Earnings Limitations for Establishing Military Wages

The total basic pay and deemed military wages (DMW) may not exceed maximum taxable wages for the year the military wages are being added. (See RS 01404.300 for the maximum taxable wages and tax rates.)

4. Electronic Military Service Wage Pay Calculator (MISCAL)

MISCAL is an electronic web site which maintains monthly basic pay for all pertinent reporting periods for all ranks and grades of the military service. It accurately and efficiently performs monthly, quarterly and pro rated military wage calculations. Use MISCAL to calculate the amount of military wages that should be posted to an individual’s E/R. Guidelines are provided in RS 01404.225B. and RS 01404.225C. for manually calculating military wages and to provide an understanding of how and why MISCAL ascertains the amount of wages to be posted. However, MISCAL should be used in lieu of performing a manual computation.

5. General Rules for Calculating Military Wages

The rules for calculating military wages depend upon the length of the active duty service.

a. Calculating Military Pay when Active Duty Service is 30 days or More

Monthly basic pay is computed as if each month has 30 days:

  • If the military service began during a month, calculate the pay based on the number of days served during the month up through the 30th day of the month.

  • If the military service began on the 31st of any month, no pay accrues for that day.

  • If the military service begins in February and service continues through the end of the month, the pay for February equals the monthly pay minus the prorated amount for the number of days expired before entry on duty.

    EXAMPLE: The serviceperson began active duty on February 26, 1966. The discharge rank was E-1 with less than 4 months service. Calculate the military pay as follows:

    $87.90   (monthly pay for an E-1 with less than 4 months service)

    - 73.25   (prorated amount for 25 days which expired before entry)

    $14.65   (5 days at E-01 with less than 4 months)

b. Calculating Military Pay When Active Duty is Less than 30 Days

Calculate the military pay for less than 30 days of active duty as follows:

  • Use 1/30th of the monthly rate times the number of days of active duty service;

  • Do not include the 31st day of a calendar month.

NOTE: This method is used to compute military pay for short periods of active duty such as Active Duty for Training (ACDUTRA) in the reserves.

6. Rounding

MISCAL automatically performs the necessary rounding up to the next cent.

7. Earnings for Computation Purposes

If a manual PIA computation is required, add the military wages calculated from the pay charts/MISCAL and the creditable DMW to the total wages posted for that year to determine the earnings to be used in the PIA computation.

B. Procedure - For Years Prior to 1978 and E/R Shows Posting for Some Quarters

1. Determining Quarterly Wages from Wages Posted

  1. a. 

    Quarterly Wages may be determined from the guidelines in RS 01404.225B.1.b when:

    • there was no break in service during the year;

    • no change in years of service or rank during the year; and 

    • the amount posted to the E/R is correct.

      Refer to the pay charts in MISCAL for the effective date of change in the pay rates.

  2. b. 

    To determine the correct earnings for the missing quarter use the earnings posted for one of the quarters that shows posted earnings and enter/post that amount to the quarter which has no military earnings posted.

    In order to permit EC and ICERS to automatically add the DMWs:

    • For reporting periods prior to 03/68, update DRAMS to show proven military wages.

    • For reporting periods after 12/67, show the type of employment as military in the appropriate Earnings Modernization Item Correction screen.

  3. c. 

    If a manual computation is required, add the DMW based on the above computation and the result of the above computation to the total wages posted for that year to determine an annual wage amount that can be used in the computation of benefits.

2. Determining Quarterly Wages using the Pay Charts and MISCAL

Take the following action when the conditions in RS 01404.225B.1 do not apply:

  1. a. 

    Access the pay charts in MISCAL to determine daily, monthly or quarterly basic pay by year, rank (or grade), and years of service.

  2. b. 

    If there is no change in rank (or grade) or years of service during a quarter, multiply the monthly amount shown on the pay chart by 3 or use the quarterly amount shown on MISCAL.

  3. c. 

    If there is a change in rank (or grade) or years of service during a quarter (or the service begins or ends during a quarter), use MISCAL or calculate the quarterly pay by:

    • dividing each monthly pay chart amount (i.e., from-to) by 30;

    • multiplying each result by the number of days in each partial month (i.e., from-to); and

    • adding the results of the multiplication together for a “quarterly” wage.

  4. d. 

    The results from either RS 01404.225B.2.b. or RS 01404.225B.2.c. may be used for correction purposes for the missing quarter(s) by adding three months together to obtain total quarterly wages.

  5. e. 

    The appropriate DMW should be added to results in RS 01404.225B.1.c. for computation purposes.

  6. f. 

    If an incorrect amount is already posted and the time limit for corrections has expired, the amount for that quarter cannot be corrected unless the correct amount is larger than what is posted. If the amount posted is larger than the correct amount, the amount posted should be added to “corrected” quarters for computation purposes.

3. Default - Military Service Grade/Rank is Unknown

  1. a. 

    Compute wages using grade E-1 if the individual's grade cannot be established based on proofs in file.

    REMINDER: If military wages are correctly posted, it may be possible to determine the grade and length of service from the posted amount. Refer to the Reverse Lookup function of MISCAL.

  2. b. 

    Advise the claimant of this fact and explain that military wages can be recomputed (and possibly increase the amount of benefits) if evidence of a higher grade can be provided.

4. Partial Months

  1. a. 

    Entry after the first day of the month or discharge before the last day of a month is considered a partial month.

  2. b. 

    Obtain the monthly pay amount from the pay chart using MISCAL.

  3. c. 

    Use the prorated month function in MISCAL or divide the monthly pay amount by 30 and multiply it by the number of days on duty including the entry or discharge day. (See RS 01404.225A.5 to determine the number of days to use in the calculation.)

  4. d. 

    Add to other monthly amounts in quarter, if any, for correction purposes.

  5. e. 

    Add associated DMW to quarterly amount and add to other quarterly amounts for the year, if any, for computation purposes.

C. Procedure - E/R Shows No Postings for the Year

1. Calculation

Follow RS 01404.225B.2 and use MISCAL.

NOTE: Feedback should be requested for the years before and after the year with the missing military posting. The posting for these years can help establish correct pay rate (rank and years of service) for the missing period.

2. Default/Partial Months

Apply instructions in RS 01404.225B.3. and RS 01404.225B.4.

D. Example

1. E/R

1957 not posted.

2. DD Form 214 Facts

  1. a. 

    Name — Mike Brown.

  2. b. 

    Service — U.S. Army.

  3. c. 

    Enlistment — 6/15/55.

  4. d. 

    Discharge — 6/14/58.

  5. e. 

    Data for 1957:

    • Private first class, E-3, from 1/1/57 to 9/19/57;

    • Corporal, E-4, from 9/20/57 to 12/31/57; and

    • Completed 2 years of service on 6/14/57.

3. Pay Chart Monthly Wages for 1957

  1. a. 

    E-3, under 2 years of service = $99.37.

  2. b. 

    E-3, over 2 years of service = $117.00.

  3. c. 

    E-4, over 2 years of service = $140.40.

4. Calculation for 1957

  1. a. 

    Jan.-May: $99.37 per month x 5 = $496.85

  2. b. 

    Jun. 1-14: $99.37 divided by 30  14 = $46.34.

  3. c. 

    Jun. 15-30: $117.00 divided by 30  16 = $62.40.

  4. d. 

    Jul.-Aug.: $117.00 per month x2 = $234.00.

  5. e. 

    Sept. 1-19: $117.00 divided by 30  19 = $74.10.

  6. f. 

    Sept. 20-30: $140.40 divided by 30  11 = $51.48.

  7. g. 

    Oct.-Dec.: $140.40 per month x3 = $421.20 .

5. Entries for Earnings Modernization Item Correction

  1. a. 

    3/57 = $298.11 (99.37  3).

  2. b. 

    6/57 = $307.52 (99.37  2 + 46.38 +62.40).

  3. c. 

    9/57 = $359.58 (117.00  2 + 74.10 + 51.48).

  4. d. 

    12/57 = $421.20 (140.40  3).


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0301404225
RS 01404.225 - Establishing Military Wages Based on Proof of Military Service - 04/05/2024
Batch run: 12/23/2024
Rev:04/05/2024