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US service members are slated to receive a significant pay increase of 5.2% in January 2023, as stipulated by the National Defense Authorization Act (NDAA). This pay raise, the largest in over 20 years, will benefit all ranks, with junior members seeing an increase of approximately $1,100 annually and senior officers potentially receiving over $10,000 more.
The 5.2% raise, matching the Biden administration’s request, follows a formula set by a separate federal law for troop entitlements. This increase, the highest since a 6.9% raise in 2002, follows a 4.6% raise given this year.
Amid concerns about service members’ compensation and efforts to address a recruiting crisis, the NDAA also includes provisions to enhance junior service members’ financial well-being. For example, military services may offer a monthly bonus to E-6s and below in 2024 if economic conditions negatively impact them. Additionally, the bill proposes flexibility for the Basic Allowance for Housing (BAH), including potentially excluding it from income calculations for food-insecure troops with demonstrated need.
The 2024 military pay structure may still see further revisions. House Republicans proposed a 30% pay increase for E-6s and below in a separate Pentagon spending bill, aiming to ensure no service member earns less than an equivalent of $15 per hour. However, this proposal was not included in the NDAA, with ongoing studies on military pay and the White House’s opposition to overhauling the pay chart during a comprehensive review.
The 14th Quadrennial Review of Military Compensation, expected to conclude by January 2025, is part of this assessment. As negotiations for the final spending bill continue, with a deadline in February, adjustments to military pay remain a topic of congressional discussion.
