Current Secretary of Defense Salary and Pay Grade
The Secretary of Defense is a Level I position in the Executive Schedule, which sets the maximum annual base salary at $235,600 for 2025, according to the latest Office of Personnel Management tables OPM Executive Schedule. This rate aligns with other cabinet-level officials and reflects the statutory cap for Level I executive employees.
In addition to the base salary, the Secretary of Defense receives the same federal employee benefits package available to senior executives, including health insurance under the Federal Employees Health Benefits program, life insurance, and retirement contributions Federal Employee Benefits. The position also includes access to a government-provided residence at the Pentagon and travel allowances for official duties.
Historical Salary Changes and Legislative Context
The Secretary of Defense salary has remained at the Level I cap since the pay system was restructured under the Ethics Reform Act of 1989, which established the Executive Schedule and its annual adjustments based on the General Schedule pay tables OPM Executive Schedule. Prior to the current fixed cap, the salary was set by statute and adjusted periodically by Congress.
Pay Comparisons with Other Senior Officials
The Secretary of Defense earns the same base salary as the Vice President, the Secretary of State, and other Level I Executive Schedule positions, all capped at $235,600 annually OPM Executive Schedule. This uniform structure ensures consistent compensation across the highest-ranking appointed officials in the federal government.
Additional Allowances and Perquisites
The Secretary of Defense receives a taxable allowance for official residence and entertainment expenses, funded through the Department of Defense budget. These allowances are not part of the public salary figure but support the operational requirements of the office, including secure communications and official travel DoD Budget Overview.
Retirement Benefits and Post-Service Compensation
Former Secretaries of Defense are eligible for a presidential pension under the Former Presidents Act if they served at least two years, currently set at approximately $230,700 annually, adjusted for inflation Former Presidents Pension. Those who do not qualify for the presidential pension may receive a standard federal retirement annuity based on their years of service and highest three years of salary.
The Secretary of Defense also participates in the Federal Employees Retirement System, contributing a defined percentage of basic pay toward a Thrift Savings Plan with government matching TSP Official Site. After separation from service, former Secretaries retain access to federal health benefits through the Federal Employees Health Benefits program if they meet eligibility requirements.