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3.4. Separation Pay

Certain separating service members are entitled to separation pay, which is paid on the basis of 10 percent of your annual base pay at the time of your separation, multiplied by the number of years of active service. Eligibility requires that you have satisfied all of the following elements: you have finished your first term of enlistment or period of obligated service; you have at least six years of service; you are separating involuntarily; you are not currently eligible for retirement; and you are not separating under adverse conditions. To determine if you qualify for separation pay, contact your unit commander and local personnel and finance offices. If you qualify, the finance office at your installation can compute the actual payment amount.