Other pay: Assignment Incentive Pay - Pay, pay raises, pay allowances, pay charts - Navy Times

Other pay: Assignment Incentive Pay

There are several uses for assignment incentive pay, which is set by law at a maximum of $3,000 per month, although no service currently pays anywhere near that amount.

The Navy began experimenting with this new pay in 2003 as a way for sailors to “bid” on hard-to-fill assignments. It has since expanded into the military’s preferred way to compensate troops from all services for certain unusual assignment circumstances. For example, service members involuntarily extended beyond 12 months in the Iraq and Kuwait combat zone are paid an extra $1,000 per month — an additional $200 in hardship-duty pay and $800 in assignment-incentive pay.

The pay is offered to personnel in certain skills who have served 12 months in Iraq or Afghanistan and agree to extend their tours. They can receive $300 per month for a three-month extension, $600 per month for a six-month extension and $900 per month for a 12-month extension. Those with critical intelligence skills receive even more: up to $1,000 per month for each month of extension.

In South Korea, the Army now pays $300 per month to soldiers who extend their one-year tours for 90 days or less, and $500 per month to those who extend for 91 days to one year. The program has proven extremely popular. The Air Force has a similar program in South Korea, paying $300 per month for those who agree to serve a 24-month unaccompanied tour.

Assignment incentive pay is taxable unless in a combat zone.