International Military Pay Comparability

#1
Direct lift from ABN 14-05:

INTERNATIONAL PAY COMPARABILITY - THE MERCER REPORT

ISSUE

Publication of the Mercer Report, commissioned by the Armed Forces’ Pay Review Body (AFPRB); Benchmarking International Armed Forces’ Pay and Allowances.

INTERNATIONAL ARMED FORCES’ PAY AND ALLOWANCES

Whilst comparisons with international armed forces are not part of their remit, the AFPRB last year commissioned Mercer Human Resources Consulting, an independent HR consultant, to conduct a comparative study. The Mercer Report was presented in December 2004 and informed the AFPRB’s 24th Report, 2005.

Military attachés in Australia, Austria, Canada, Denmark, France, Germany, Ireland, Netherlands, New Zealand, Norway, Spain and the USA provided certain information on armed forces’ pay and certain allowances for the host nations. Mercer analysed this information, taking account of base pay, X-Factor, allowances for operational service and separation, and also the issue of whether or not pay and allowances were subject to tax.
Mercer’s main conclusion is that:

“When base pay, X-Factor and allowances on operations (in the UK, Longer Separated Service Allowance and Long Service at Sea Bonus) are taken into account, the UK package remains ahead of seven of the countries surveyed, broadly in line at most ranks with Ireland, the USA and Canada, but the package is less favourable than that provided at most ranks by Australia and France.”

The AFPRB conclude from the survey that:

“...overall, the UK [pay and allowances] package remains broadly comparable with that offered by other nations.”
So, it seems that are valued less than the French rabble of cheese-eating surrender monkeys, but are paid better than a load of (frankly) second rate conscript organisations.

Note that it is only when the 'extra' bonuses, like LSSA and LOA are taken into account, that we maintain parity. Without them, we actually place much further down the list. The bluff comment that we are all on operations constantly (hence the 'X' factor) simply doesn't wash in this instance. Our base pay is woefully low (given our commitments) and anticipated reductions in LOA, coupled to increases in F&A charges and tax, can only mean that our people will become increasingly disadvantaged over time.

Perhaps we should push for politicans to have their pay linked to number of hours spent in the House - I suspect that manmy of them would fall below the breadline* in pretty short order.

*i.e. the sum of money required to run a fleet of Jags and live in a variety of 'grace and favour' homes.
 
#2
I've just been castigated by phone for not pointing out the following:

From the 34th AFPRB Report 2005:

Of the countries surveyed, the UK appeared to offer the highest, or second
highest, base salaries across the ranks
, with only Canada providing higher base
pay at certain ranks;

• When base pay, X-factor and allowances on operations (in the UK, Longer
Separated Service Allowance and Longer Service at Sea Bonus) are taken into
account, the UK package remains ahead of seven of the countries surveyed and
broadly in line at most ranks with Ireland, the USA and Canada, but the package
is less favourable than that provided across most ranks by Australia and France;

• The survey indicated that the UK attached a higher value to payments targeted on
the disadvantages of military life (X-factor in the UK) than other countries
surveyed, with the exception of Canada for certain military ranks
;

• The survey also indicated that UK pension arrangements appeared more attractive
than those offered in the countries surveyed
; and

• The relative advantage experienced by the UK on base pay in 2001 had slightly
narrowed, which is consistent with contextual trends in pay movements, currency
movements and changes in cost of living in the countries surveyed.

1.18 As we pointed out in 2002, there are difficulties associated with any international
comparisons. They require a detailed appreciation of the circumstances in each country
surveyed and, because exchange rates fluctuate, timing can materially affect the results.
With this caveat, we conclude from the survey that, overall, the UK package remains
broadly comparable with that offered by other nations.
Bloody information superhighway....
 

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