Combat pay refers to the compensation that members of the military receive during the period that they serve in a combat zone. During times of war, not all members of the military are sent to the front lines. Those that are sent, however, get extra pay - combat pay. This special pay is added on top of the regular pay as a way of recognizing the additional hazard that the military member is exposed to. Combat pay is actually the casual term used, while imminent danger pay is the official term for it.
While members of the military sent to combat zones all receive combat pay, the amount of the additional pay varies depending on different factors. The military has a combat pay chart which determines just how much a soldier will receive additionally. This chart takes into consideration things such as the location, the living conditions, the rank of the soldier, and the family status of the soldier.
In addition to combat pay, some soldiers may receive hardship pay. This is given to those who are sent to locations wherein the living conditions are way below the standards that the members of the military are used to. More so, the family of the military member may also receive additional incentives or assistance.
Combat pay is often considered to be tax free, but it is best to consult with a certified accountant. This is due to the fact some states may have different laws regarding taxation and combat or hardship pay in particular.