Risk and Combat Compensation

August, 2011
IDA document: P-4747
FFRDC: Systems and Analyses Center
Type: Documents
Division: Cost Analysis and Research Division
Saul Pleeter, Alexander O. Gallo, Brandon R. Gould, Maggie X. Li, Shirley H. Liu, Curtis J. Simon, Carl F. Witschonke, Stanley A. Horowitz See more authors
The principal justification for combat compensation is to recognize military personnel who face significant combat risk. This paper demonstrates that there is only a weak relationship between the risk faced by personnel and the combat-related compensation they receive. It describes the elements of combat compensation, the most important being Hostile Fire Pay/Imminent Danger Pay (HFP/IDP) and the Combat Zone Tax Exclusion (CZTE),