Last Updated on November 16, 2023
This guide provides helpful information about the Surface Warfare Officer’s salary in the United States Navy during Fiscal Year 2023.
There are many online resources that provide the basic pay for Surface Warfare Officers (SWO), but those are not very useful for new Navy Officer applicants.
As a new SWO, you may wonder how much you can expect to earn during your first four years of service obligation contract.
In this article, we’ll inspect the different sources of income for new SWOs and provide useful insight that includes calculations.
Understanding Military Pay and Benefits
First, it’s important to understand the different components of military pay and benefits. Military pay comprises several components, including basic pay, allowances, and special pays. For this article, we’ll be focusing on basic pay and allowances.
Basic Pay
Surface Warfare Officer’s basic pay refers to the standard salary or compensation received by an individual serving as a Surface Warfare Officer in the United States Navy.
It is the foundational level of payment provided to SWOs based on their rank, years of service, and other relevant factors.
Basic pay is determined by rank and years of service. As a new SWO, you’ll start at the rank of O-1 and receive automatic pay raises every one to two years.
Allowances
Surface Warfare Officer allowances refer to the financial benefits, or compensation provided to officers serving in the navy.
These allowances may include housing allowances, travel allowances, medical allowances, education allowances, and other additional payments that are given to SWOs, besides their regular salary.
These allowances are provided to support and enhance the well-being and financial stability of SWOs while they fulfill their duties and responsibilities.
The two most common allowances are Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS).
Earnings for New Surface Warfare Officers
So, how much can a new SWO expect to earn during their first four years? (Four years is the most common service obligation contract for new SWOs).
A newly commissioned SWO’s salary is determined by several factors, such as their rank, experience, and any special qualifications they may have.
Besides basic pay and allowances, SWOs may also be eligible for certain financial perks, such as tuition reimbursement and employee discounts.
They’ll also have access to health and life insurance benefits through the military service.
The amount of money a SWO earns also depends on their duty station and job responsibilities and any hazardous duty pay they may receive.
SWOs serving in high-risk locations or performing more hazardous duties will earn higher salaries than those serving in less dangerous roles.
Let’s look at the numbers that apply to new SWOs.
Year 1 Earnings
In your first year as an O-1 SWO with less than two years of service, your basic pay will be $3,287.10 per month. Besides your basic pay, you’ll also receive BAH and BAS.
BAH rates vary depending on your location and whether you have dependents.
For example, an O-1 SWO stationed in San Diego, CA without dependents would receive $2,970 per month in BAH.
BAS rates are the same for all Navy officers and are currently set at $256.68 per month.
| Year | Rank | Years of Service | Basic Pay | BAH | BAS |
|---|---|---|---|---|---|
| 1 | O-1 | < 2two | $3,287.10 | Varies (e.g., $2,970 for San Diego) | $256.68 |
Year 2 Earnings
In your second year as an O-1 SWO with over two years of service, your basic pay will increase to $4,136.40 per month. Your BAH and BAS will remain the same.
| Year | Rank | Years of Service | Basic Pay | BAH | BAS |
|---|---|---|---|---|---|
| 2 | O-1 | > 2 | $4,136.40 | Varies (e.g., $2,970 for San Diego) | $256.68 |
Year 3 Earnings
In your third year as an O-2 SWO with over two years of service, your basic pay will increase again to $4,893.40 per month. Your BAH and BAS will remain the same.
| Year | Rank | Years of Service | Basic Pay | BAH | BAS |
|---|---|---|---|---|---|
| 3 | O-2 | > 2 | $4,893.40 | Varies (e.g., $3,519 for San Diego) | $256.68 |
Year 4 Earnings
In your fourth year as an O-2 SWO with over three years of service, your basic pay will increase once more to $5,055.30 per month. Your BAH and BAS will remain the same.
| Year | Rank | Years of Service | Basic Pay | BAH | BAS |
|---|---|---|---|---|---|
| 4 | O-2 | > 3 | $5,055.30 | Varies (e.g., $3,519 for San Diego) | $256.68 |
Average Earnings
The average annual total earnings over the first four years of a SWO’s service can be calculated by adding up the total earnings for each year and then dividing by four.
Here are the total earnings for each year based on the basic pay, BAH, and BAS rates provided in the article:
- Year 1: $3,287.10 (basic pay) + $2,970 (BAH) + $256.68 (BAS) = $6,513.78 per month or $76,165.36 per year
- Year 2: $4,136.40 (basic pay) + $2,970 (BAH) + $256.68 (BAS) = $7,363.08 per month or $88,356.96 per year
- Year 3: $4,893.40 (basic pay) + $3,519 (BAH) + $256.68 (BAS) = $8,669.08 per month or $104,028.96 per year
- Year 4: $5,055.30 (basic pay) + $3,519 (BAH) + $256.68 (BAS) = $8,830.98 per month or $105,971.76 per year
Adding these up gives a total of $374,523.04 over four years. Dividing by four gives an average annual total earning of approximately $93,630.76.
Please note that these calculations are based on the assumption that the BAH and BAS rates remain constant over the four years and that the SWO is stationed in San Diego with no dependents.
The actual earnings of SWOs may vary depending on changes in BAH and BAS rates, as well as the SWO’s location and dependent status.
Surface Warfare Officer Retention Bonus
The U.S. Navy is significantly investing in retaining qualified Surface Warfare Officers through substantial bonus incentives.
Eligibility Criteria for SWO Bonuses
Understanding eligibility is crucial. Active-duty SWOs who have already completed at least one division officer tour, or those who are assigned to a “fleet-up” or a single longer tour billet, are eligible for these bonuses.
Active Duty Officers
Eligible SWOs could earn as much as $105,000 for becoming department heads.
Lieutenant Commanders
Active-duty lieutenant commanders may earn up to $46,000 upon committing for another three years of service.
Lieutenant Junior Grades
SWOs of this rank commit to a department head retention bonus as early as their third year of commissioned service, provided they pass their first screening for a department head role.
Compensation Structure: Details and Timelines
The bonuses are not a lump-sum payment but are divided into several increments, contingent upon the specifics of the service agreement.
First-Look Screeners
SWOs with four years of commissioned service will receive an initial payment of $20,000, another payment of $10,000, and subsequently five $15,000 increments annually.
SWOs with six years of commissioned service will receive three $25,000 payments and two $15,000 payments.
Important: Total compensation will be reduced if the Department Head Retention Bonus (DHRB) contract is not signed prior to specified years of commissioned service, which varies depending on whether the SWO is a first, second, or third-look screener.
SWO Lieutenant Commander Retention Bonus
For lieutenant commanders with between 11 and 12 years of service, the bonus structure is:
Active-duty lieutenant commanders will receive $22,000 on the second anniversary of their promotion, plus $12,000 on the third and fourth anniversaries.
Reserve officers will receive the bonuses according to the same schedule but will receive only $12,000 on the second anniversary, totaling $36,000 for the duration of the service commitment.
Key Takeaways: Evaluating Your Options
The Navy is implementing these financial incentives to keep skilled SWOs across various ranks. If you meet the eligibility criteria, this presents a financially helpful opportunity for career progression within the Navy.
Source: All data and information are based on official U.S. Navy documentation as of the most recent update.
Whether you are a newly commissioned officer or a seasoned lieutenant commander, these financial incentives are tailored to encourage career longevity and expertise within the Surface Warfare community.
It’s advised to weigh these benefits carefully as you contemplate the next steps in your naval career.
Conclusion
In conclusion, as a new SWO, you can expect to earn a competitive salary during your first four years of service obligation contract.
With automatic pay raises every one to two years and additional allowances for housing and food, a career as a SWO is both financially rewarding and fulfilling.
We hope this article has provided you with useful information about the earnings of new SWOs.
If you’re considering a career in the Navy, we encourage you to learn more about the competitive pay and benefits offered by this branch of the military.
I hope this article helps with your career planning.
