DAF Form 350: Separation Pay Worksheet (Download PDF) – If you are separating from the U.S. Air Force or U.S. Space Force before becoming eligible for retirement, you may qualify for involuntary separation pay (also called non-disability separation pay). The DAF Form 350, officially titled Separation Pay Worksheet, is the key document used by Department of the Air Force (DAF) finance personnel to calculate your entitled lump-sum payment.
This worksheet ensures accurate computation based on your years of service, monthly basic pay, and eligibility criteria. Below is everything you need to know about DAF Form 350, including who qualifies, how separation pay is calculated, and how to access the official form.
What Is DAF Form 350?
DAF Form 350 is the official Separation Pay Worksheet issued by the Department of the Air Force (under SAF/FM). Finance technicians and military pay sections use it to manually compute the final separation settlement for members leaving active duty.
The form captures member information (name, rank, SSN, date of separation), service history, and applies the correct multiplier (full or half separation pay) to determine the gross amount before taxes and any deductions. Recent updates to related tools have automated some tax-year calculations and added payment threshold alerts to prevent overpayments.
Official Download Link:
DAF Form 350 PDF
This is the current version hosted on the Air Force e-Publishing site. Always use the official source to ensure you have the latest form.
Who Qualifies for Separation Pay?
Non-disability involuntary separation pay is governed by 10 U.S.C. § 1174 and DoDI 1332.29. It provides a one-time lump-sum payment to eligible active-duty and reserve component members who are involuntarily discharged or denied continuation short of retirement eligibility.
Full Involuntary Separation Pay (ISP) eligibility generally requires all of the following:
- At least 6 but fewer than 20 years of active service.
- Involuntary separation (e.g., due to force shaping, reduction in force, or certain administrative discharges—not for misconduct that disqualifies pay).
- Honorable or general (under honorable conditions) characterization in most cases.
- For reservists: At least 6 years of continuous active duty immediately preceding separation.
Half separation pay may apply in some cases (50% of the full amount), depending on the specific reason for separation and Service Secretary determination.
Note: Separation pay is not automatic. Eligibility is determined by your command, personnel office, and finance. Certain discharges (e.g., for misconduct) typically disqualify members from receiving it. Disability severance pay follows different rules and is handled separately.
How Separation Pay Is Calculated?
The standard formula for full involuntary separation pay is:
Full ISP = 10% × (Years of Active Service) × 12 × (Monthly Basic Pay at time of separation)
- Years of service include partial years (each full month counts as 1/12 of a year).
- Use your monthly basic pay (not including allowances like BAH or BAS) at the time of discharge.
- Half ISP is simply 50% of the full amount.
Example (approximate, for illustration only):
A member with 10 years of service and $5,000 monthly basic pay:
10% × 10 × 12 × $5,000 = $60,000 gross separation pay (before taxes and deductions).
Actual amounts vary by pay grade, years of service, and the exact basic pay table in effect at separation. Finance offices use the DAF Form 350 worksheet (or updated automated tools) to perform the precise calculation, accounting for any unique factors.
Taxes: Separation pay is generally taxable as income. Federal withholding often applies at a flat rate (commonly 22% for supplemental wages), plus any state taxes. Consult a tax professional or DFAS for your specific situation—lump-sum payments can push you into a higher tax bracket.
How to Use DAF Form 350?
- Your finance office or Military Pay Section typically completes the worksheet as part of your separation out-processing.
- Provide accurate information: Name, rank, SSN, unit, projected date of separation (DOS), and supporting documents (e.g., orders, leave statements, Master Military Pay Account records).
- The form walks through blocks for service computation, pay rate, multiplier (full/half), and final computation.
- Once calculated, the amount is processed through the Defense Joint Military Pay System (DJMS). Final pay, including any accrued leave, is usually disbursed shortly after separation.
Tip for separating members: Work closely with your servicing Financial Services Office (FSO) or Comptroller Squadron early in the out-processing checklist. Bring any questions about leave balances, final pay, and potential recoupments.
Recent SAF/FM updates have improved the supporting tools used alongside the DAF 350, including automated tax-year handling based on your DOS and alerts for high-value payments requiring DFAS review.
Related Separation Benefits and Considerations
- Accrued Leave: You are paid for unused leave at your basic pay rate.
- Final Pay & DD Form 214: Your separation orders and Certificate of Release or Discharge will reflect key details.
- VSI/SSB Recoupment: If you previously received Voluntary Separation Incentive or Special Separation Benefit, those amounts may need to be repaid if you later qualify for retirement pay.
- DFAS Resources: Visit DFAS Separation Payments page for additional guidance.
Always verify your specific eligibility and calculations with official DAF/DFAS channels, as policies can have nuances based on your separation authority and service history.
Download DAF Form 350 & Next Steps
Direct PDF Link:
https://static.e-publishing.af.mil/production/1/saf_fm/form/daf350/daf350.pdf
Recommended Actions:
- Contact your unit commander, first sergeant, or separations counselor.
- Schedule an appointment with base Finance (Comptroller Squadron).
- Review your Master Military Pay Account (MMPA) for accuracy.
- Consult the latest DAFI 36-3211 Military Separations for policy details.
Separating from service is a major transition. Understanding tools like the DAF Form 350 Separation Pay Worksheet helps ensure you receive the full benefits you’ve earned. For the most current information, rely on official Air Force e-Publishing, DFAS, and your local finance office.
This article is for informational purposes only and is not a substitute for official military guidance. Pay rates, policies, and eligibility are subject to change. Always consult your servicing finance office or DFAS for personalized calculations.