Updated December 26, 2023
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, United States Code provides a
although the President or Congress may override this
permanent formula for an automatic annual increase in
statutory adjustment.
basic pay that is indexed to the annual increase in the ECI
for “wages and salaries, private industry workers.” The
Pay Raise for 2024
automatic adjustment is 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 adjustment in basic pay for 2024 under the
the 12-month period between the quarter that ended in
statutory formula is 5.2%, although Congress can
September 2020 and the quarter that ended in September
enact a law to supersede this adjustment.
2021, the ECI increased by 4.6%. Hence, the pay raise for
calendar year 2023, as calculated by the statutory formula,
What Is Basic Pay?
was 4.6%.
Basic pay is one component of the military compensation
package, which also includes housing, subsistence, health
However, under subsection (e) of this statute, the President
care, and retirement benefits. For most servicemembers, it
can specify an alternative pay adjustment that supersedes
is the largest element of the compensation they receive in
the automatic adjustment. Additionally, Congress may pass
their paycheck and typically accounts for about three-fifths
a law to specify the annual pay raise, superseding the
of an individual’s regular military compensation (RMC).
automatic adjustment and/or any presidential adjustment.
RMC is “the total of the following elements that a member
Statutory Formula for 2024
of the uniformed services accrues or receives, directly or
indirectly, in cash or in kind every payday: basic pay, basic
The adjustment in basic pay for calendar year 2024 under
allowance for housing, basic allowance for subsistence, and
the statutory formula is 5.2% (reflecting the increase in the
Federal tax advantage accruing to the aforementioned
ECI between the third quarter of 2021 and the third quarter
allowances because they are not subject to Federal income
of 2022). The actual increase in basic pay for 2024 can be
tax.” (37 U.S.C. §101(25)). (See CRS In Focus IF10532,
different, depending on presidential or congressional action.
Defense Primer: Regular Military Compensation.)
Congressional and Presidential Action
for 2024
The rate of basic pay an individual receives varies based on
his or her paygrade (rank) and years of military service. For
The FY2024 President’s Budget requested a 5.2% increase
example, in 2023, a newly enlisted recruit (paygrade E-1)
in basic pay, equivalent to the statutory formula. The House
with four or more months of service and less than two years
and Senate-passed versions of the National Defense
of service received $1,917.60 in basic pay per month, while
Authorization Act (NDAA) for FY2024,(H.R. 2670 and S.
a more senior enlisted person (paygrade E-6) with between
2226) did not contain provisions specifying the increase in
10 and 12 years of service received $4,170.90 per month. A
basic pay. Absent new law specifying a different rate, the
newly commissioned officer (paygrade O-1) with less than
increase specified by the statutory formula will go into
two years of service received $3,637.20 in basic pay per
effect on January 1, 2024.
month in 2023, while a more senior officer (paygrade O-4)
with between 10 and 12 years of service received $8,254.80
per month.
https://crsreports.congress.gov
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
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%
2023
= ECI
4.6%
4.6%
n.a.
NGP
4.6%
2024
= ECI
5.2%
5.2%
n.a.
NGP
5.2%
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.
Kristy N. Kamarck, Specialist in Military Manpower
IF10260
https://crsreports.congress.gov
Defense Primer: Military Pay Raise
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https://crsreports.congress.gov | IF10260 · VERSION 24 · UPDATED