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Officers in pay grades O-1, O-2, and O-3 with more than four years of prior cumulative service (creditable toward both length of service and retirement) in an enlisted or warrant officer grade are paid "... the special rate of basic pay for pay grade O-1E, O-2E, or O-3E," [19] respectively. [4]
If the combination of creditable active duty days and inactive duty points equals 1,460 (equivalent to exactly 4 years and 1 day of cumulative qualifying active and inactive duty), the pay grade O-1E is assigned, which is a significantly higher starting basic pay level than O-1, and remains higher until promoted to O-4. [12]
Once commissioned, the new officer advances to the pay rate of O-1, unless they have at least four years of active duty service, in which case they are paid the higher O-1E rate in recognition of the prior enlisted service. Such pay continues at promotion to the next two grades ("O-2E" and "O-3E"), but is discontinued at the grade of O-4.
The amount of pay varies according to the member's rank, time in the military, location duty assignment, and by some special skills the member may have. Pay will be largely based on rank, which goes from E-1 to E-9 for enlisted members, O-1 to O-10 for commissioned officers and W-1 to W-5 for warrant officers.
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