Separation Pay and Final Pay

Start Here If You Are New to Final Pay at Separation

Final pay at separation has multiple components. BASIC PAY through the date of separation. LEAVE SELL-BACK (one-time, 60-day career cap on accrued leave). Final accrued allowances (BAH, BAS). TRAVEL ENTITLEMENTS for movement to home of selection or home of record. Beyond final pay, SEPARATION PAY is a separate framework. FULL and HALF Involuntary Separation Pay (10% formula based on basic pay × years × 10%). DISABILITY SEVERANCE PAY for Marines found unfit through DES. VOLUNTARY SEPARATION PAY (VSP) when authorized via MARADMIN. Final pay processes through DFAS. The Marine receives the final paycheck typically within 30 days of separation. Cross-reference to the comprehensive Separation Payments leaf in the Pay and Entitlements parent group for detailed pay framework. Per Vol 7A Chapter 35 and MCO 1900.16MCO 1900.16.

This page walks you through separation pay and final pay from your seat as a Marine separating. By the end you will know.

• The components of final pay (basic pay, leave sell-back, allowances, travel)
• The 60-day career cap on leave sell-back
• Full and Half Involuntary Separation Pay framework
• Disability Severance Pay framework
• Voluntary Separation Pay (VSP)
• Travel entitlements at separation
• DFAS processing timeline
• Cross-reference to the Separation Payments leaf in Pay and Entitlements

Every fact on this page comes from DoD FMR Volume 7ADoD FMR Volume 7A Chapter 35, MCO 1900.16MCO 1900.16, 10 U.S.C. 117410 U.S.C. 1174, and DFAS published guidance.

Components of Final Pay

Basic Pay Through Date of Separation

The Marine receives basic pay at the appropriate grade through the effective date of separation.

• Computed by DFAS based on the Marine's grade, time in service, and effective date.
• Reflected on the final LES (Leave and Earnings Statement).

Leave Sell-Back

Marines may sell back accrued leave at separation. The framework.

One-Time Career Cap

A 60-day cap applies across the Marine's career for leave sell-back. Marines who already sold back leave at a prior separation have less remaining capacity.

Calculation

Leave sell-back is paid at the basic pay rate (not BAH or BAS).

• Daily rate = Basic Pay / 30.
• Sell-back amount = Daily rate × number of days sold.

What Counts as Accrued Leave

• Earned annual leave (2.5 days per month).
• SLA (Special Leave Accrual) up to 30 days at separation.

The Terminal Leave page in the Leave and Liberty parent group covers terminal leave decisions and the Special Leave Accrual page covers SLA.

Final Allowances

The Marine receives.

• Final BAH at the Marine's locality and dependent rate.
• Final BAS.
• Final special pays and incentives accrued through the separation date.

Travel Entitlements

The Marine is entitled to travel pay to.

• Home of selection (HOS) for retirement.
• Home of record (HOR) for non-retirement separation.

The PCS framework covers transportation, lodging, and per diem during the final travel.

The Separation, Retirement, and Accession Travel page in the PCS parent group covers travel entitlements.

Full and Half Involuntary Separation Pay

Per Vol 7A Chapter 35 and 10 U.S.C. 117410 U.S.C. 1174, Marines involuntarily separated under specific circumstances are entitled to Involuntary Separation Pay.

Full Involuntary Separation Pay (10% Formula)

The standard separation pay calculation.

• Years of Service × Basic Pay × 0.10.

Eligibility for Full Pay

Per 10 U.S.C. 117410 U.S.C. 1174, eligibility includes.

• Marines involuntarily separated.
• Honorable or General Under Honorable Conditions characterization.
• 6+ years but less than 20 years of active service.
• Not voluntarily separated.

Half Involuntary Separation Pay

Per 10 U.S.C. 117410 U.S.C. 1174, Marines may receive HALF of the Full pay calculation in certain circumstances.

Half Pay Eligibility

• Marines who request release that is approved.
• Specific characterizations.
• Marines who would otherwise be ineligible for Full pay.

Recoupment

Marines who receive Involuntary Separation Pay and later return to military service may be required to repay the separation pay.

The Separation Payments leaf in the Pay and Entitlements parent group covers Involuntary Separation Pay in detail.

Disability Severance Pay

Marines found UNFIT through the Disability Evaluation System (DES) and separated with severance receive Disability Severance Pay.

Calculation

• Years of Service × Basic Pay × 2 × 0.05 (varies by formula).
• Specific framework per Vol 7A Chapter 35.

Eligibility

• Marine found unfit through DES.
• Disability rating below 30 percent (above 30 percent is a retirement, not severance).
• Specific service requirements per the framework.

The Disability Evaluation System leaf covers DES outcomes including disability severance.

Voluntary Separation Pay (VSP)

Per specific MARADMINs authorizing the program.

What VSP Is

A separation incentive paid to Marines who voluntarily separate under authorized programs (typically force shaping driven).

Eligibility

Varies by program. Each VSP MARADMIN has specific eligibility criteria, application windows, and incentive amounts.

Submission

Through the MARADMIN procedure to MMSR-2 or designated program manager.

Travel Entitlements at Separation

Home of Selection (Retirement)

Retiring Marines may select their home of selection for the final travel. Travel entitlements include.

• Transportation (commercial air or POV mileage).
• Per diem during travel.
• Household goods (HHG) shipment.
• Travel time.

Home of Record (Non-Retirement)

Non-retiring separating Marines travel to their home of record.

• Transportation.
• Per diem during travel.
• HHG shipment per JTR Chapter 5.
• Travel time.

The Separation, Retirement, and Accession Travel page in the PCS parent group covers these entitlements in detail.

DFAS Processing Timeline

Final Pay

DFAS typically processes the final paycheck within 30 days of separation.

Separation Pay

If applicable, separation pay is typically issued separately from final pay. Processing time varies.

Recoupment

If the Marine has any debts to the government (e.g., advance pay not yet repaid), DFAS may withhold from final pay or separation pay.

Verifying Final Pay

The Marine should review the final LES carefully and report any discrepancies to DFAS through the unit S-1.

Common Final Pay Scenarios

Scenario 1. Marine Reaches EAS With 30 Days of Leave

Marine has 30 days accrued leave at EAS.

• Final pay components. Basic pay through EAS, BAH, BAS, leave sell-back (30 days × daily rate), travel pay to home of record.
• Result. Marine receives final pay typically within 30 days of separation.

Scenario 2. Marine Involuntarily Separated After 8 Years

Marine separated involuntarily for unsatisfactory performance after 8 years of service.

• Final pay. Standard final pay components.
• Separation pay. Full Involuntary Separation Pay (8 years × basic pay × 0.10).
• Result. Marine receives final pay plus separation pay. May be subject to recoupment if returning to service.

Scenario 3. Marine Found Unfit Through DES With 20% Rating

Marine found unfit with 20 percent disability rating.

• Final pay. Standard final pay components.
• Separation pay. Disability Severance Pay (formula varies).
• Result. Marine receives final pay plus disability severance.

Scenario 4. Marine Approved for VSP

Marine approved for VSP under a specific MARADMIN program.

• Final pay. Standard final pay components.
• Separation pay. VSP per MARADMIN-specific calculation.
• Result. Marine receives final pay plus VSP incentive.

Scenario 5. Marine Already Sold 30 Days of Leave at Prior Separation

Marine separated previously at end of first contract and sold 30 days. Now separating after second contract with another 30 days accrued.

• Available sell-back capacity. 60-day cap minus 30 already sold = 30 days remaining.
• Result. Can sell up to 30 more days. Career cap reached after this separation.

Common Mistakes

Mistake 1. Not Tracking Career Leave Sell-Back

The 60-day cap applies across the career, not per separation. Marines should track total leave sell-back over their career.

Mistake 2. Confusing Separation Pay With Final Pay

Final pay includes basic pay, leave sell-back, allowances, and travel. Separation pay is a separate framework for involuntarily separated Marines or DES outcomes.

Mistake 3. Missing Travel Entitlement

Marines may forget to claim travel pay to home of record or home of selection. Coordinate with the unit S-1.

Mistake 4. Not Reviewing Final LES

The final LES should be carefully reviewed for discrepancies. Report errors to DFAS through the unit S-1.

Mistake 5. Not Understanding Recoupment

Marines who receive Involuntary Separation Pay and return to service may be required to repay. Plan accordingly.

Mistake 6. Outstanding Debts Not Resolved

Marines with outstanding government debts (advance pay, BAH overpayment, etc.) may have those debts withheld from final pay or separation pay.

Common Questions Marines Ask

What is final pay?

Basic pay through the date of separation, leave sell-back (60-day career cap), final allowances (BAH, BAS), and travel entitlements.

What is the leave sell-back cap?

60 days across the Marine's career. Track total sell-back over multiple separations if applicable.

What is Full Involuntary Separation Pay?

Years of service × basic pay × 0.10. For Marines involuntarily separated with Honorable or General characterization and 6-20 years of active service.

What is Half Involuntary Separation Pay?

Half of the Full calculation. For Marines who request release that is approved or other circumstances per 10 U.S.C. 117410 U.S.C. 1174.

What is Disability Severance Pay?

Pay for Marines found unfit through DES with disability rating below 30 percent. Specific formula per Vol 7A Chapter 35.

What is Voluntary Separation Pay (VSP)?

A separation incentive paid under authorized MARADMINs. Force shaping driven. Eligibility per the specific MARADMIN.

What travel pay do I get?

Travel to home of selection (retirement) or home of record (non-retirement). Includes transportation, per diem, HHG shipment, travel time.

How long does DFAS take to issue final pay?

Typically within 30 days of separation. Verify through the final LES.

What if I have outstanding debts?

DFAS may withhold from final pay or separation pay to cover debts. Coordinate with the unit S-1 to resolve.

Can I be recouped on Involuntary Separation Pay?

Yes if you return to military service after receiving the pay.

Where can I get more detail on separation pay?

The Separation Payments leaf in the Pay and Entitlements parent group covers detailed framework.

What is the difference between separation pay and retirement pay?

Separation pay is a one-time payment at separation (often before 20 years of service). Retirement pay is a monthly pension paid for life starting at retirement. Different frameworks.

How does final pay interact with terminal leave?

Marines on terminal leave receive basic pay and allowances during terminal leave. The final pay calculation reflects the actual end date of service (which may be the end of terminal leave for some scenarios).

Where to Go for Help

Routing by Issue

• Final pay calculation. Unit S-1 and DFAS.
• Leave sell-back tracking. Unit S-1 review of MOL leave records.
• Separation pay (Involuntary). MMSR-2 and DFAS coordination.
• Disability Severance Pay. MMSR-4 and DFAS coordination.
• Voluntary Separation Pay (VSP). Per the specific MARADMIN.
• Travel pay at separation. Unit S-1 and PSO (Personnel Service Office).
• Final LES discrepancies. DFAS Marine Corps Pay 1-888-332-7411 (DSN 312-571-9450).
• BCNR for code-related pay impacts. DD Form 149DD Form 149.

Where to Go Next on This Site

• Separations and Retirement landing page lists all topics.
• Separations and Retirement Overview and Authorities covers the framework.
• Voluntary Separations covers EAS and voluntary paths.
• Involuntary Separations covers the basis for Involuntary Separation Pay.
• Transition Requirements covers TRS, Capstone, ITP.
• Disability Evaluation System covers DES outcomes including Disability Severance Pay.
• Separation Payments in Pay and Entitlements covers detailed pay framework.
• Terminal Leave in Leave and Liberty covers terminal leave decisions.
• Special Leave Accrual in Leave and Liberty covers SLA at separation.
• Separation, Retirement, and Accession Travel in PCS covers travel entitlements.

Related Roles

• Leaders coach Marines on tracking leave sell-back across career and verifying final pay.
• Admin at S-1 supports DFAS coordination, travel pay, and final LES review.
• Commanders endorse separation packages including pay-related elements.

Final pay at separation includes basic pay through date of separation, leave sell-back (60-day career cap), final allowances, and travel entitlements. Separation pay is a separate framework. Full and Half Involuntary Separation Pay (10% formula) for involuntarily separated Marines. Disability Severance Pay for Marines unfit through DES. VSP per authorized MARADMINs. DFAS processes within 30 days typically. Cross-reference to the Separation Payments leaf in Pay and Entitlements for detailed framework. Per Vol 7A Chapter 35 and MCO 1900.16MCO 1900.16.