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   June 22, 2001


BAH increased for E-1s through E-4s

WASHINGTON (Army News Service) -- Service members in pay grades E-1 through E-4 who have families and live off base will see an increase in their allowance for housing July 1.

The boost is the result of legislation aimed at helping junior-enlisted families.

"One of the reasons was to take the E-1 to E-4 with dependents and have them receive the same basic allowance for housing rate," said Maj. Leslie Gerald, manager of the compensation and entitlements division of the Army’s Deputy Chief of Staff for Personnel. "The other initiative was to increase the housing standard that the E-4 with dependents currently had prior to July 1."

On average, those in E-1 through E-3 grades will receive a monthly increase of more than $50. E-4s will see a smaller monthly boost of about $11. Rates will remain the same for single service members. And those stationed overseas receive housing allowances under a different system and are not affected.

Housing allowances are based on rental costs, so the actual increase will vary, depending on the cost of living in that particular area, Gerald said. In most cases, those living in high-cost locations will see larger increases.

"Under the new plan, an E-1 who lives in Oakland, Calif., will receive $1,325," Gerald explained. "That’s $124 more than last year’s allowance of $1,201 for that area."

The new junior enlisted BAH rates were added by Congress to the fiscal year 2001 Defense Authorization Act.