18. The AIF Pay Corps

WW1 – The AIF Pay Corps - Soldiers Pay

Saluting their Service - Grahame Old

The Pay System

Managing the pay and finances of the 1st AIF during WW1 was a monumental task, truly one of the largest financial exercises undertaken in Australia’s short history. It was recognised early that in the interest of the morale of the soldiers it was critical that any pay system function effectively. Prior to WW1 the Australian permanent Army was a small force of less than 2000 men, pay matters were handled by 29 public servants in the Defence department. When the AIF was raised, virtually overnight, with a strength of around 400,000 men, it became obvious that a larger separate entity was required to handle pay matters. In September 1914 the Australian Army Pay Corps (AAPC) was then raised to administer all pay and financial aspects of the AIF.

Australian Soldiers were the highest paid amongst the allied forces an AIF private soldier was paid 6 shillings per day, this amount represented what the average worker in Australia could earn per day in 1914. By comparison, the New Zealand soldier was paid 5s per day, the American 4s and 7d per day, the Canadian 4s and 6d per day, the French 2s and 1/2d per day, and the poor Russian soldier only 1/2d per day.                                            

Note: Australian and British currency were equivalent, 1 pound=20 shillings (s) and 1 shilling =12 pence (d). Rates of pay for the AIF are shown in the table below;

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Allotments

Compulsory allotments were made from a soldiers pay to his dependents at home, the minimum amount being 2 fifths of the soldiers pay. The amount increased to 3 fifths if the soldier had children. A soldier could allot more however he had to keep 1s a day for personal requirements. British soldiers were paid far less than their Australian counterparts however they did not have to make an allotment, instead a separation allowance was paid to the soldiers' dependents by the government at a rate based on his former civilian earnings.

Separation Allowance

Unlike the British government the Australian government did not initially pay a separation allowance to soldiers' dependents however by the end of 1915, as it became obvious that the war would continue for some time, the allowance was paid to the dependents of soldiers earning 8s a day or less. In September 1917 the allowance was expanded and paid to dependents of soldiers earning 10s a day or less. The amount of the allowance was 1s 5d per day with an additional 4 and1/2d per day for each child under the age of 16. A dependent included spouse or de-facto, or a dependent father and or mother. In April 1918 the allowance was again expanded to include dependents of sergeants through to Warrant Officer class one however the payment was limited to a dependent spouse with children only.

It should be noted that some Australian employers continued to pay their employees who had enlisted the difference between the soldier’s service pay and his earnings as a civilian. Banks in particular were noted for doing this.

Deferred Pay

The compulsory deferred pay as shown in table 1 was held over for the soldier until his discharge. This lump sum discharge payment was intended to assist the soldier transition to civilian life. In the case of the death of a soldier the lump sum was paid to his nominated beneficiary.  

Prisoners of War

POW’s continued to receive pay at the normal rate whilst interned (held in pay book). In addition, Officers interned by the German and Turkish governments, were paid an allowance by their captors.

Soldier Killed in Action or Missing

 The nature of War during WW1 led to many missing soldiers; some were killed in action, some turned up later in casualty clearing stations or in field hospitals, some were taken prisoner of war, some bodies were never found and some soldiers simply went absent. They all continued to accrue pay. After every battle an enquiry would take place, witnesses would be called to establish the fate of the missing soldiers. The court would then declare the date of those killed and their pay was ceased from that date. The soldiers pay book was then finalised and arrangement made for payment to the soldiers' beneficiary. Red Cross enquiries soon identified POW’s and their pay continued. Those declared illegally absent would have their pay and allotments ceased from the date they were declared absent.

The AIF Pay Book

Each soldier in the AIF had an individual pay book and every detail regarding payments were entered into that book by an AAPC pay officer. Soldiers were responsible for their own books and disciplinary action could be taken for loss or damage. At the rear of the book was space for the soldier to make a will if he chose to, most soldiers however made separate wills which were held in their individual file.

The AAPC on Active Service

 Around 1200 soldiers served in the Pay Corps during WW1, despite being a non-combatant corps, nine were killed whilst on active service and 12 were wounded. A further 270 were wounded prior to being transferred to the Pay Corps, their wounds often being the reason for the transfer. The AAPC served in all theatres of the war. The Pay Corps was disbanded in June 1921 and pay requirements, for a very small post war permanent army, reverted to civilian employees in each military district. At the outbreak of WW2 the Pay Corps was again raised. (source: To Their Credit-Brendan Cook & AWM)

                                               ‘Lest we Forget’

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