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£8,000 available to Regular Privates and Lance Corporals entering their third year of service: this financial incentive is expected to be open to over 12,000 Service Personnel, over three years from January 2025 until December 2027.
Please note: This page is for information only and is intended to aid SP in checking their potential eligibility. Full information regarding eligibility and the application process can be found via the links included on the page below.
From 1 January 2025, a targeted Retention Payment is offered to Regular UK Trained Army Personnel (UKTAP) Other Ranks (ORs) at Private (OR2) and Lance Corporal (OR3) ranks, upon entering their third year of service (Length of Service 3 - LoS 3).
The Retention Payment is a single payment of £8,000 (gross) for a 3-year (36-months) Return of Service.
This financial incentive is open from 1 January 2025 until 31 December 2027.
Substantive Regular UKTAP soldiers at OR2 or OR3, entering LoS 3 - having attested between 1 January 2022 and 31 December 2024 inclusive.
Approximately 12,000 Service Personnel will enter LoS 3 during the three years that the financial incentive is open.
UKTAP OR2s or OR3s eligible for the incentive must:
be clear of any discharge or Administrative Actions;
not be Permanently Medically Non-Deployable (MND(P));
have a most recent Overall Performance Grade of B or above;
not have submitted a Notice to Terminate application.
The Retention Payment aims to:
retain Service personnel entering a critical stage in their Army career, where Voluntary Outflow is higher than at any other time;
stabilise the workforce to ensure we have sufficient talent to keep us safe at home and strong abroad.
The Retention Payment is a single payment of £8,000 (gross) for a 3-year (36-months) Return of Service. The payment is taxable and subject to Earning Related National Insurance Contributions (ERNIC). It does not form a pensionable contribution to earnings.
At the start of each financial quarter, those entering LoS 3 within the financial quarter receive a push notification through the Defence Gateway, prompting them to apply for the Retention Payment using the Digital Transfers Financial Incentives Tab on the CM Portal.
Upon confirming their eligibility, the applicant has three months (until the end of the financial quarter in which they enter LoS 3) to submit their application for the Retention Payment. Failure to apply within the financial quarter - within three months of receiving their push notification - will mean the applicant is ineligible to receive the payment.
For full information on eligibility, please refer to:
Army Briefing Note - Army Retention Payment [defnet link]
Admin Instruction - Army Retention Payment [defnet link]
Applications are submitted via the CM Portal > Digital Transfers > Financial Incentives Tab.
Page last updated: 1 April 2025
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