Updated November 23, 2022
Defense Primer: Military Pay Raise
The phrase “military pay raise,” frequently used in
Pay tables are available at https://www.dfas.mil/
discussions of military compensation, almost always refers
militarymembers/payentitlements/Pay-Tables.
to the annual increase in basic pay for members of the
uniformed services. By law, basic pay is automatically
How Is the Annual Increase in Basic Pay
increased at the start of each calendar year by an amount
Calculated?
linked to the change in the Employment Cost Index (ECI),
Section 1009(c) of Title 37 provides a permanent formula
although the President or Congress may override this
for an automatic annual increase in basic pay that is indexed
statutory adjustment.
to the annual increase in the ECI for “wages and salaries,
private industry workers.” The automatic adjustment is
Pay Raise for 2023
equal to the increase in the ECI from the third quarter of the
third preceding year to the third quarter of the second
preceding year. For example, in the 12-month period
The adjustment in basic pay for 2023 under the
between the quarter that ended in September 2019 and the
statutory formula is 4.6%, although Congress can
quarter that ended in September 2020, the ECI increased by
enact a law to supersede this adjustment.
2.7%. Hence, the pay raise for calendar year 2022, as
calculated by the statutory formula, was 2.7%.
What Is Basic Pay?
Basic pay is one component of the military compensation
However, under subsection (e) of this statute, the President
package, which also includes housing, subsistence, health
can specify an alternative pay adjustment that supersedes
care, and retirement benefits. For most servicemembers, it
the automatic adjustment. Additionally, Congress may pass
is the largest element of the compensation they receive in
a law to specify the annual pay raise, superseding the
their paycheck and typically accounts for about three-fifths
automatic adjustment and/or any presidential adjustment.
of an individual’s regular military compensation (RMC).
RMC is “the total of the following elements that a member
Statutory Formula for 2023
of the uniformed services accrues or receives, directly or
The adjustment in basic pay for calendar year 2023 under
indirectly, in cash or in kind every payday: basic pay, basic
the statutory formula is 4.6% (reflecting the increase in the
allowance for housing, basic allowance for subsistence, and
ECI between the third quarter of 2020 and the third quarter
Federal tax advantage accruing to the aforementioned
of 2021). The actual increase in basic pay for 2023 can be
allowances because they are not subject to Federal income
different, depending on presidential or congressional action.
tax.” (37 U.S.C. §101(25)).
Congressional and Presidential Action
for 2023
The rate of basic pay an individual receives varies based on
his or her paygrade (rank) and years of military service. For
The FY2023 President’s Budget requested a 4.6% increase
example a newly enlisted recruit (paygrade E-1) with four
in basic pay, equivalent to the statutory formula. The
or more months of service and less than two years of
House-passed version of the National Defense
service receives $1,833.30 in basic pay per month in 2022,
Authorization Act (NDAA) for FY2023, H.R. 7900, and the
while a more senior enlisted person (paygrade E-6) with
Senate Armed Services Committee reported version of the
between 10 and 12 years of service receives $3,987.60 per
FY2023 NDAA, S. 4543, do not contain provisions
month. A newly joined officer (paygrade O-1) with less
specifying the increase in basic pay. Absent new law
than two years of service receives $3,477.30 in basic pay
specifying a different rate, the increase specified by the
per month in 2022, while a more senior officer (paygrade
statutory formula will go into effect on January 1, 2023.
O-4) with between 10 and 12 years of service receives
$7,891.80 per month.
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Defense Primer: Military Pay Raise
Table 1. Historical Increases in Basic Pay
Pay raise figures do not include targeted increases (“pay table reform,” or PTR), which are discussed in the comments column
Calendar
Year in
Provision
Which Pay
Enacted
Raise Was
Statutory
Increase
Budget
into Law
Increase in
Effective
Formula
in ECI
Request
PAA
(NDAA)
Basic Pay
Comments
PTR: Additional increases for midgrade and
2003
= ECI +0.5%
3.6%
4.1%+PTR
n.a.
4.1%+PTR
4.1%+PTR
senior enlisted, midgrade officers, and some
warrant officers.
PTR: Additional increases for midgrade and
2004
= ECI +0.5%
3.2%
2.0%+PTR
n.a.
3.7%+PTR
3.7%+PTR
senior enlisted, and some warrant officers.
2005
= ECI +0.5%
3.0%
3.5%
n.a.
3.5%
3.5%
2006
= ECI +0.5%
2.6%
3.1%
n.a.
3.1%
3.1%
PTR: Additional increases for midgrade
2007
= ECI
2.2%
2.2%
n.a.
2.2%+PTR
2.2%+PTR
enlisted and some warrant officers; pay table
extended to 40 years of service.
2008
= ECI
3.0%
3.0%
n.a.
3.5%
3.5%
2009
= ECI
3.4%
3.4%
n.a.
3.9%
3.9%
2010
= ECI
2.9%
2.9%
n.a.
3.4%
3.4%
2011
= ECI
1.4%
1.4%
n.a.
NGP
1.4%
2012
= ECI
1.6%
1.6%
n.a.
NGP
1.6%
2013
= ECI
1.7%
1.7%
n.a.
1.7%
1.7%
2014
= ECI
1.8%
1.0%
1.0%
NGP
1.0%
2015
= ECI
1.8%
1.0%
1.0%
NGP
1.0%
No increase for paygrades O-7 and higher.
2016
= ECI
2.3%
1.3%
1.3%
NGP
1.3%
No increase for paygrades O-7 and higher.
2017
= ECI
2.1%
1.6%
1.6%
2.1%
2.1%
2018
= ECI
2.4%
2.1%
2.1%
2.4%
2.4%
2019
= ECI
2.6%
2.6%
n.a.
NGP
2.6%
2020
= ECI
3.1%
3.1%
n.a.
3.1%
3.1%
2021
= ECI
3.0%
3.0%
n.a.
3.0%
3.0%
2022
= ECI
2.7%
2.7%
n.a.
NGP
2.7%
FY23 NDAA not yet enacted, but House
passed and SASC reported versions of that
2023
=ECI
4.6%
4.6%
n.a.
bil do not contain provisions specifying the
increase in basic pay.
Sources: Statutory formula from 37 U.S.C. §1009; increase in ECI from Bureau of Labor Statistics; presidential alternative adjustment from
presidential notification to Congress; provision enacted into law from relevant NDAA.
Notes: PAA = presidential alternative adjustment; PTR = pay table reform (targeted changes in certain cel s of the pay table, thereby giving
certain groups higher pay raises than provided by the general increase); NGP = no general statutory provision; n.a. = not applicable.
Lawrence Kapp, Specialist in Military Personnel Policy
IF10260
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Defense Primer: Military Pay Raise
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https://crsreports.congress.gov | IF10260 · VERSION 23 · UPDATED