Pay System Category 1

Full-Time Military

Active duty soldiers, sailors, airmen, and marines have always operated on 168 hours a week. CHAPPS is the first system to formally account for every single one — and pay accordingly.

The Original 168-Hour Worker

Military personnel have always lived and worked on a 24/7 schedule. Whether deployed overseas, stationed stateside, or on-call at 3 AM — the military member never truly clocks out. They exist within the 168-hour week more completely than any other class of worker.

Under the traditional pay system, only 40 of those 168 hours are formally recognized — and all 40 are taxed. CHAPPS changes this by structuring military base pay into the same four-category split used across all worker types: Benefits, Stipend, Next Year's Salary, and This Year's Salary.

The result is that 75% of a soldier's base pay becomes non-taxable — a shift that produces lasting financial impact without changing a single duty assignment or deployment schedule.

168
HOURS/WEEK
Total weekly hours — fully documented
40
CLOCKABLE HRS
Active duty service hours per week
128
RR HOURS
Rest & Recuperation — formally recognized
75%
TAX REDUCTION
Only 10 of 40 hours are taxable pay

10 / 10 / 10 / 10 — The Military Pay Structure

Every 40 hours of active duty service is divided equally into four categories. The same structure applied to every worker in the CHAPPS system applies here — no exceptions, no special treatment.

Pay Category Hours/Week Hours/Year Tax Status Purpose
Benefits Pay 10 hrs 520 hrs Non-Taxable Health, housing, clothing allowances — documented as earned income
Stipend Pay 10 hrs 520 hrs Non-Taxable Special duty pay, hazard pay, deployment allowances
Next Year's Salary 10 hrs 520 hrs Non-Taxable Accumulated quarterly — converts to active pay every 15 weeks
This Year's Salary 10 hrs 520 hrs Taxable Active duty base pay — the only taxable portion
TOTAL 40 hrs/wk 2,080 hrs/yr 75% Non-Tax Every hour documented. Every dollar categorized.

How Pay Is Spread Across the Work Week

Following the CHAPPS Table 6 structure, each work week's 40 hours are distributed across 5 days with a deliberate pattern. Days 1 and 2 are Benefits + Salary days. Day 3 is the transition day — all four categories at 2 hours each. Days 4 and 5 are Stipend + Next Year's Salary days.

This pattern is not arbitrary. It ensures that every category reaches exactly 10 hours by the end of each week — creating a perfectly balanced, fully documented pay record that cannot be disputed or manipulated.

Every week produces the same exact result: 10 hrs Benefits, 10 hrs Stipend, 10 hrs Next Year's Salary, 10 hrs This Year's Salary. Military accuracy applied to military pay.
DAY N/S DAY BENEFITS STIPEND NEXT YR THIS YR
1 Saturday 4 hrs 4 hrs
2 Tuesday 4 hrs 4 hrs
3 Wednesday 2 hrs 2 hrs 2 hrs 2 hrs
4 Thursday 4 hrs 4 hrs
5 Friday 4 hrs 4 hrs
WEEKLY TOTAL 10 hrs 10 hrs 10 hrs 10 hrs

Source: CHAPPS — Table 6, Benefits and Pay for One Week. Non-Scheduled (N/S) days are the two days per week the worker is off-schedule under the 3-Bid system.

Quarterly Retirement Accumulation

Every 12 weeks, 120 accumulated hours of Next Year’s Salary convert to active pay. A soldier does not retire on a pension — they retire on the pay they pre-funded themselves, quarter by quarter.

Military Pay Grade (Example) Hourly Equivalent 10 hrs/wk × 12 wks Quarterly Amount Annual Pre-Fund
E-4 (Specialist)
~$22/hr equivalent
$22/hr 120 hrs $2,640 $10,560
E-6 (Staff Sergeant)
~$28/hr equivalent
$28/hr 120 hrs $3,360 $13,440
E-8 (Master Sergeant)
~$38/hr equivalent
$38/hr 120 hrs $4,560 $18,240
O-3 (Captain)
~$50/hr equivalent
$50/hr 120 hrs $6,000 $24,000
All amounts — Non-Taxable, Self-Funded, Permanently Owned No government dependency

Tithe From Stipend — Tax-Free

Every quarter, 120 hours of your stipend rate accumulate. 10% of that quarterly amount goes to your church — completely tax-free. The government never touched it first. The full gift reaches the house of worship.

CHAPPS Usage — From Benefits

Every quarter, 120 hours of your benefits rate accumulate. 10% of that quarterly amount goes to the usage of CHAPPS — also non-taxable. Both the tithe and CHAPPS contribution are structured into the system from day one.

Annual Leave, Sick Leave & Holidays

Annual Leave
  • 0–3 years: Accruing (not yet eligible for full draw)
  • 3+ years: 160 hours per year
  • 15+ years: 208 hours per year (160 + 48 bonus)
  • Maximum saved: 440 hours (hours above this cap are forfeited at fiscal year end)
Sick Leave
  • Accrual: 104 hours per year
  • No cap on balance — unlimited carry-over
  • Completely separate from annual leave
  • Years of accumulated balance = long-term health security
Paid Holidays

Under CHAPPS, 11 paid holidays are recognized — 6 Major and 5 Non-Major. All holidays are fully documented within the 168-hour framework.

  • 6 Major Holidays (New Year's, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas)
  • 5 Non-Major Holidays (MLK Day, Presidents' Day, Columbus Day, Veterans Day, plus one additional)

Ready to Apply CHAPPS to Military Service?

CHAPPS provides the full framework, documentation, and structure to implement this pay system for any military unit, branch, or command. Join the movement — $100 gets you everything you need.