If you’re a military servicemember, your Leave and Earnings Statement (LES) is one of the most important financial documents you’ll receive. It provides a detailed breakdown of your pay, allowances, deductions, and leave balance. Understanding how to read your LES can help you track your earnings, budget effectively, and identify any financial discrepancies. This guide will walk you through every line item on a standard LES, with callouts to special circumstances you might encounter.

You can access your LES through DFAS myPay | Online Account Management for DFAS Payroll Services.

Understanding Your Military Leave and Earnings Statement, Line by Line

1. Personal Information

At the top of your LES, you’ll see this personal identifying information:

• Name
• Social Security Number (SSN) (last four digits)
• Rank/Pay Grade
• Branch of Service

Why is this important?

• If your rank or pay grade is incorrect, it could impact your pay. Contact your personnel office immediately to resolve discrepancies.

2. Entitlements

This section lists all sources of your military income before taxes and deductions:

• Basic Pay: Your primary salary based on your military rank and years of service.
• Basic Allowance for Housing (BAH): Applies to servicemembers not living in government quarters.
• Basic Allowance for Subsistence (BAS): A non-taxable allowance for meals.
• Special Duty Pay: Applies to specific assignments such as hazardous duty, flight status, or submariner duties.
• Other Incentives: Bonuses or incentives for reenlistment, deployments, or proficiency.

Items to check:

• If you’re deployed to a combat zone, certain portions of your pay may be tax-exempt.
• BAH rates vary by location and dependency status.

3. Deductions

This section includes mandatory and voluntary deductions:

• Federal Income Tax
• FICA, Social Security and Medicare
• State Taxes: Based on your declared home of record.
• Servicemembers' Group Life Insurance (SGLI): Premiums for life insurance coverage.
• Thrift Savings Plan (TSP): Contributions to your retirement savings.

Items to check:

• If you’ve opted for Family SGLI (FSGLI), additional premiums will appear in your LES.
• Tax exemptions may apply for combat pay.

4. Allotments

This section details payments you’ve authorized to go directly to others, such as:

• Family Support: Allotments sent to dependents.
• Debt Repayment: Payments for government or personal debts.
• Savings: Deposits into a savings account.

Items to confirm:

• Check regularly to ensure any old allotments have been canceled once they are no longer needed.

5. Summary

This is a quick snapshot of your finances:

• Net Pay: The amount deposited into your bank account.
• Total Entitlements, Deductions, and Allotments: A summary of each section.
• DIEMS (Date of Initial Entry to Military Service): An indicator of which military retirement plan may apply to you.

Pay special attention:

• If the numbers don’t add up, review the breakdown in each section to locate any errors.

6. Leave Balances

This section tracks your accrued leave:

• Current Leave Balance: How many days of leave you have earned.
• Use/Lose Balance: Leave days you must use before the end of the fiscal year to avoid losing them.
• Leave Taken: Days of leave used in the current pay period.

What to track:

• If you’re approaching your use/lose threshold, make plans to use your leave accordingly..
• Check for balance discrepancies if you recently took or canceled leave

7. Tax Information

Details include:

• Taxable Wages: Total income subject to federal and state taxes.
• Tax Withholding: Amount withheld for federal and state taxes.

Special Circumstances:

• Combat zone pay and some other allowances are tax-exempt. Verify your tax withholdings to ensure accuracy.

8. Remarks Section

This area contains notes from your finance office, including:

• Special payments or adjustments to your pay.
• Notices about upcoming changes to pay or deductions.
• Leave expiration warnings.

What is important: If you’ve recently reenlisted or changed duty stations, the remarks section often reflects related financial changes.

Final Tips

• Double-check your LES monthly: Errors can occur, and it’s easier to address them earlier, rather than later.
• Contact your Finance Office: If you have questions or notice discrepancies, reach out for assistance.
• Keep records: Save a copy of each LES for your financial records.

By familiarizing yourself with your LES, you can take control of your financial well-being and ensure you’re receiving the correct entitlements and allowances. Stay vigilant and don’t hesitate to seek clarification about your finances, pay, and leave when needed.

Understanding your LES is not just about ensuring accuracy in your pay — it’s also a critical step in creating a solid budget or spending plan. Knowing exactly how much money you have coming in and where it’s going allows you to make informed financial decisions so you can allocate funds for savings, manage debt effectively, and plan for future expenses. Use your LES as a foundation to build a budget that supports your financial goals and provides peace of mind.