This guide provides helpful information about the Surface Warfare Officer’s salary in the United States Navy during Fiscal Year 2025.
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
A new Surface Warfare Officer (SWO) in 2025 starts as an Ensign (O-1) and gets a mix of base pay, housing and food allowances, and potential bonuses.
Base Pay
A 4.5% pay raise kicked in on January 1, 2025. That puts an O-1 with less than two years of service at about $3,998 per month.
Basic Allowance for Housing (BAH)
Rates jumped an average of 5.4% for 2025, but the actual amount depends on location, rank, and whether they have dependents. In San Diego, CA, an O-1 with dependents pulls $3,663 per month, while one without gets $2,748.
Basic Allowance for Subsistence (BAS)
Covers food costs at a fixed rate, adjusted yearly based on USDA food pricing. Same rate everywhere, no variations by location.
Additional Pays
- Career Sea Pay – More time at sea means more money. Increases with years spent on sea duty.
- Hazardous Duty Incentive Pay – Assigned to riskier roles? Extra pay depends on the level of danger.
Promotion
After two years, an Ensign typically moves up to Lieutenant Junior Grade (O-2), bringing a pay bump.
For exact pay details, check with Defense Finance and Accounting Service (DFAS).
Let’s look at the numbers that apply to new SWOs.
As of 2025, the compensation for a Surface Warfare Officer (SWO) at the rank of Ensign (O-1) is as follows:
Year 1:
- Rank: O-1 (Ensign)
- Years of Service: Less than 2
- Basic Pay: $4,041 per month travel.dod.mil
- Basic Allowance for Housing (BAH): Varies by location and dependent status. For example, in San Diego, CA:
- With dependents: $3,663 per month
- Without dependents: $2,748 per month travel.dod.mil
- Basic Allowance for Subsistence (BAS): $311.68 per month
Year 2:
- Rank: O-1 (Ensign)
- Years of Service: Over 2
- Basic Pay: $4,392 per month travel.dod.mil
- BAH and BAS: Typically remain the same, subject to annual adjustments.
Year 3:
- Rank: O-2 (Lieutenant Junior Grade)
- Years of Service: Over 2
- Basic Pay: $4,515 per month travel.dod.mil
- BAH: In San Diego, CA:
- With dependents: $4,443 per month
- Without dependents: $3,984 per month travel.dod.mil
- BAS: $311.68 per month
Year 4:
- Rank: O-2 (Lieutenant Junior Grade)
- Years of Service: Over 3
- Basic Pay: $5,043 per month travel.dod.mil
- BAH and BAS: Generally remain consistent, with potential annual adjustments.
Average Annual Total Earnings:
To calculate the average annual total earnings over the first four years, sum the total compensation for each year and divide by four.
Year 1:
- Total Monthly Compensation: $4,041 (Basic Pay) + $2,748 (BAH without dependents in San Diego) + $311.68 (BAS) = $7,100.68
- Annual Total: $7,100.68 × 12 = $85,208.16
Year 2:
- Total Monthly Compensation: $4,392 + $2,748 + $311.68 = $7,451.68
- Annual Total: $7,451.68 × 12 = $89,420.16
Year 3:
- Total Monthly Compensation: $4,515 + $3,984 + $311.68 = $8,810.68
- Annual Total: $8,810.68 × 12 = $105,728.16
Year 4:
- Total Monthly Compensation: $5,043 + $3,984 + $311.68 = $9,338.68
- Annual Total: $9,338.68 × 12 = $112,064.16
Cumulative Total Over Four Years: $85,208.16 + $89,420.16 + $105,728.16 + $112,064.16 = $392,420.64
Average Annual Total Earnings: $392,420.64 ÷ 4 = $98,105.16
Notes:
- Additional pays, such as Career Sea Pay or Hazardous Duty Incentive Pay, are not included in this calculation and can further affect total compensation.
- BAH rates are subject to change based on location, housing market fluctuations, and annual DoD assessments.
- BAS is standardized for all officers and may be adjusted annually.
- Promotions and time-in-service directly influence Basic Pay.
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 at four years of commissioned service get:
- $20,000 upfront
- $10,000 after that
- $15,000 annually for five years
SWOs at six years of commissioned service get:
- Three $25,000 payments
- Two $15,000 payments
Important: Missing the Department Head Retention Bonus (DHRB) contract deadline means less total compensation. The deadline depends on whether the SWO is a first, second, or third-look screener.
SWO Lieutenant Commander Retention Bonus
Lieutenant commanders with 11–12 years of service get bonuses based on their status:
Active-Duty
- $22,000 on the 2nd anniversary of promotion
- $12,000 on the 3rd and 4th anniversaries
- Total: $46,000 over the commitment period
Reserves
- $12,000 on the 2nd, 3rd, and 4th anniversaries
- Total: $36,000
Same schedule, different payout.
Key Takeaways: Evaluating Your Options
The Navy is rolling out these bonuses to retain experienced SWOs at all levels. If you qualify, it’s a solid financial boost that supports career growth.
Whether you’re just starting out or have years in, these incentives are built to keep skilled officers in the Surface Warfare community. Consider the long-term benefits as you plan your next move.
Conclusion
A new SWO starts with solid pay, steady raises, and extra allowances for housing and food. The first four years come with financial stability and career growth.
If you’re thinking about the Navy, take a closer look at the pay and benefits—it’s a strong package.
