It is often difficult to set compensation expectations when leaving the military for the private sector. Many wonder how their skills will be valued in the civilian workforce, how their military rank will impact their salary, and how well their prior experience coupled with their military experience will influence their total compensation package. And, although these are very valid concerns, it’s a guessing game to predict one’s future salary.
 
Rank and salary:
 
In the military, rank and pay scale are codified and determined by the government. Salary is not negotiable regardless of rank. Military pay is based upon grade (rank) and years of service.

Click on these links to view what About.com says the current salaries in the military are:
 
Enlisted Salary
 
Warrant Officer Salary
 
Commissioned Officer Salary
 
Your rank while in the service can help increase your salary once in the private sector — high rank in the military tells employers that you have managerial and leadership experience. The same goes for someone who had worked prior to joining the military. Someone who has civilian and military work experience should expect a higher total compensation because that person has exposure to different work environments.
 
Military salaries vs. private sector salaries:
 
Unlike in the military, as a civilian, it's possible to negotiate a higher salary or total compensation package. A total compensation package includes a person’s base salary plus possibly bonus, overtime, 401(k) plan, benefits, health insurance, travel expenses, pension, vacation time, and so on, based on the offerings of the company.
 
How does military salary/income compare to current salary ranks in the private sector?
 
According to a recent survey by the Federal Reserve Board, if you earn $40,000 a year, you're doing better than half the civilian households in America, reports Bankrate.com. What’s more, the survey reports that the combined household income of a teacher married to a policeman, ranks in the top 25 percent of all households in the nation.
 
Along with base pay, the military also offers enlistment or re-enlistment bonuses, an overseas housing allowance, overseas COLA (cost of living allowance), monetary food allowance and an average housing allowance.

Military rank vs. private sector job titles: 
 
In the civilian world, the rules for job titles and career advancement are also negotiable and certainly much less rigid than military rankings.
 
For example, based upon changes in technology and the economy, some companies may even create new job titles within a company such as a CTO or CIO to better address the needs of their customers. Companies have a different motive than the U.S. Government — the military is there to protect the country while companies are in business to make profit. Decisions at U.S. companies are almost always made with the bottom line in mind.

Life experience is work experience:

Whether you’re a private or a major, when you decide to make the switch to the private sector the skills and experience you take with you from the military will usually comprise at least 60 percent to 80 percent of your background or life experience. Those transferable skills and experiences should also contribute directly to your long-term earning potential. If your military experience has developed special skills and knowledge which the private sector needs, the private sector will generally pay a premium to bring you on board.
 
In other words, as a soldier, you learned about personal discipline, integrity, protocol, problem solving, organization, time management, accountability, communication and how to think and act like a reliable team member. These are the types of skills that any company in the private sector should appreciate in a new employee.
 
In sum, the private sector differs from the military by allowing each individual a say in their salary. Many companies offer growth opportunities with not as much emphasis placed on time and grade. In addition, many positions in the private sector have performance-related financial incentives for their employees in the forms of cash bonuses, profit sharing plans and equity in the company. By possessing the ability to negotiate a favorable salary and total compensation package, one will be able to afford him/herself a comfortable lifestyle while working in the private sector.