Military pay · grade group
Prior enlisted officer pay: O-1E, O-2E and O-3E in 2026
Who is paid at the "E" officer rates, how much more they are worth than the regular O-1 to O-3 rates in 2026, and when they stop.
O-1E to O-3E basic pay in 2026
O-2E, over 4
$6,484.50
| Per year | $77,814 |
| Before the 3.8% raise (approx.) | $6,247 |
| Per drill (1/30 of a month) | $216.15 |
Officers in grades O-1 to O-3 who have more than four years of active enlisted service, warrant officer service or both are paid from a separate table: O-1E, O-2E and O-3E. In 2026, an O-1E with more than four years earns $5,222.40 a month against $5,222.40 for an O-1 with the same years, an O-2E with more than eight years $6,828 against $6,617.70, and an O-3E with more than ten years $8,375.70 against $8,375.70, after the 3.8% raise of January 1, 2026. The rates recognize the experience of officers commissioned from the ranks through officer candidate school, ROTC or a commissioning program. The condition in the DFAS notes is precise: more than four years means at least four years and one day of creditable active service as an enlisted member or warrant officer. Reserve officers can qualify on the basis of 1,460 retirement points earned in enlisted or warrant status. The E rates end at promotion to O-4, where a single officer table applies again.
Checked by Radif Partners · Editorial policy · How we calculate
Regular and prior-enlisted officer rates side by side
| Years | O-1 | O-1E | O-2 | O-2E | O-3 | O-3E |
|---|---|---|---|---|---|---|
| Over 4 | $5,222.40 | $5,222.40 | $6,484.50 | $6,484.50 | $7,382.70 | $7,382.70 |
| Over 6 | $5,222.40 | $5,576.70 | $6,617.70 | $6,617.70 | $7,737 | $7,737 |
| Over 8 | $5,222.40 | $5,783.10 | $6,617.70 | $6,828 | $8,125.50 | $8,125.50 |
| Over 10 | $5,222.40 | $5,993.70 | $6,617.70 | $7,183.80 | $8,375.70 | $8,375.70 |
| Over 12 | $5,222.40 | $6,200.70 | $6,617.70 | $7,458.90 | $8,788.20 | $8,788.20 |
| Over 14 | $5,222.40 | $6,484.50 | $6,617.70 | $7,663.50 | $9,004.20 | $9,137.10 |
| Over 16 | $5,222.40 | $6,484.50 | $6,617.70 | $7,663.50 | $9,004.20 | $9,336.90 |
| Over 18 | $5,222.40 | $6,484.50 | $6,617.70 | $7,663.50 | $9,004.20 | $9,609.60 |
| Over 20 | $5,222.40 | $6,484.50 | $6,617.70 | $7,663.50 | $9,004.20 | $9,609.60 |
Why the E rates exist
A sergeant with eight years who goes through officer candidate school and becomes a second lieutenant would, on the regular table, be paid as an O-1 over 8: $5,222.40. The O-1E rate for the same years is $5,783.10. Without the E rates, commissioning could mean a pay cut compared with staying enlisted and making E-6 or E-7: an E-7 over 8 years earns $5,135.70. The E table removes most of that penalty and keeps the officer path attractive for experienced enlisted members, who often make up a large share of new officers in some branches.
Where the E rows stop
The O-1E row climbs until over 14 years and tops out at $6,484.50; the O-2E row also stops at over 14, at $7,663.50; the O-3E row continues to over 18 years, reaching $9,609.60. A prior enlisted captain who stays at O-3 to twenty years retires on a high-36 average close to that ceiling, which is above what a regular O-3 would reach, $9,004.20.
Proving the four years
Finance offices set the E rate from the service record. Active enlisted service in any branch counts, including time before a break in service, as does warrant officer service. Time spent as a cadet at a service academy or in an ROTC program does not count, nor does time in the Delayed Entry Program. Reserve and National Guard officers qualify through retirement points rather than calendar years: more than 1,460 points credited while in enlisted or warrant status. If your LES shows the regular rate while you have the service, ask the finance office to review the pay entry base date and the creditable service.
What it means over a career
The extra pay of the E rates is not small. An O-3E with more than ten years earns $0 more a year than a regular O-3 with the same years, and the difference counts toward the retirement base. The retirement calculator lets you enter your own high-36 average, and the O-1 to O-3 page covers the regular table.
The E rates also matter for warrant officers who accept a commission, since their warrant years count toward the four-year condition, and for reservists who return to active duty as officers after an enlisted reserve career.