The 2024 military pay raise has been set at 5.2%, according to the National Defense Authorization Act (NDAA) passed by the House. This is the highest federal pay raise in over 2 decades if ultimately approved. With inflation still squeezing budgets, the extra money will provide welcome relief across the ranks.
So what do service members need to know about the 2024 military pay raise and what’s next for approval? Let’s break it down.
2024 Military Pay Raise Overview
In March 2023, President Biden proposed a defense budget that included a 5.2% military pay raise for 2024. This proposal aligns with economic guidance tying annual DoD pay bumps to the Employment Cost Index (ECI).
The 5.2% raise made it through the House version of the 2024 NDAA in July 2022. The Senate is now finishing up their Defense spending plan.
If the final combined NDAA passes and gets a presidential signature, the 2024 military pay raise will take effect on January 1st.
This means service members would see the bigger paychecks reflected in mid-to-late January 2024.
Across the branches, a 5.2% increase would amount to about:
- $116 more per month for an E-6
- $207 more monthly for an O-3
2024 Pay Raise Impact by Branch
The 2024 military pay raise would apply equally across all branches and components including:
- Army
- Navy
- Marine Corps
- Air Force
- Coast Guard
- Space Force
Both active duty and reserve troops would see the same 5.2% basic pay boost.
Military Pay Raise Background
Annual military pay raises are determined using the Employment Cost Index (ECI) from the Bureau of Labor Statistics.
By law, military pay growth must match growth in private sector wages as measured in the ECI. This ensures service member pay stays competitive with civilian salaries.
For 2024, the ECI came in at 5.2% based on a 12-month measure of private sector wage changes. That triggered an equal 5.2% military pay raise to start the new year per the formula.
The 5.2% climb will be the largest military pay bump since 2002. For context, 2022’s raise was 2.7% and 2023 saw a 4.6% hike.
But recent inflation has increased prices on everything from gas to groceries. So military leaders pushed for the large 2024 hike to help troops keep pace financially. Congress agreed on the number.
2024 Pay Raise Approval Timeline
While the 5.2% pay raise passed the House, more steps remain:
- The Senate must pass their version of the 2024 Defense Authorization Act
- Then the House and Senate reconcile any differences between their bills
- The final NDAA goes back to both chambers for a full vote
- Finally the approved legislation heads to President Biden’s desk for signature into law
Congress has approved its version of the NDAA by year’s end for 60 straight years. So the 2024 military pay raise is likely to be signed and finalized.
But there remains a small chance the Raise doesn’t survive or gets amended if lawmakers can’t compromise on a broader defense spending package. Service members will have to stay tuned to the legislative process over the coming months.
2024 Military Pay Raise by Rank
| Rank | Current Monthly Pay | New Monthly Pay | $ Increase | % Increase |
| E-1 | $1,947 | $2,050 | $103 | 5.2% |
| E-5 | $2,CPYU | $3,150 | $150 | 5.2% |
| E-9 | $5,473 | $5,760 | $287 | 5.2% |
| O-1 | $3,788 | $3,987 | $199 | 5.2% |
| O-4 | $6,897 | $7,257 | $360 | 5.2% |
| O-6 | $8,139 | $8,565 | $426 | 5.2% |
This table shows sample monthly base pay data for enlisted ranks E-1 through E-9 and officer ranks O-1 through O-6. It displays their current 2023 pay, projected increased 2024 pay after the 5.2% raise, the flat dollar increase in pay, and the percentage raise.
The table gives your readers some specific examples of how much extra various ranks can expect to see in their January 2024 paychecks if the 5.2% pay raise is approved as planned.
You could include a table like this early on to help illustrate the real-world impact of the across-the-board pay hike. Let me know if you would like me to modify or add any details to this sample table.
COLA Update for Retirees
Military retirees pay will be increased as their monthly pension checks rise in 2024 thanks to annual Cost of Living Adjustments (COLAs).
By law, military retirement pay must get COLA increases equal to Social Security’s annual bump. For 2024, Social Security benefits also rose 5.2%.
This means military retirees and survivors receiving payments from the Survivor Benefit Plan (SBP) can expect a 5.2% COLA increase as well next January.
Conclusion
In an effort to keep military pay competitive, Congress approved a 5.2% basic pay raise for 2024. This will deliver the biggest pay hike for troops in over 20 years starting on January 1st.
Lawmakers now have to finalize and sign the 2024 Defense Authorization Act to make the pay bump official. All indications point to final approval by early winter 2022.
In the meantime, service members can use pay calculators and projected charts to estimate how the 2024 pay raise may boost their personal finances going into next year.
FAQs
How is the annual military pay raise percentage calculated?
By law, the military pay raise each year must equal the Employment Cost Index (ECI) which measures private sector salary growth across the economy. The latest 12-month ECI percentage becomes the new military pay raise.
Will reservists also see a 2024 military pay increase?
Yes, if approved, the 2024 pay raise will apply equally to active and reserve component troops. All members across all branches and statuses will see the 5.2% basic pay boost on January 1st, 2024.
What is the largest military pay raise percentage ever?
The current 5.2% military pay raise proposal for 2024 would mark the largest annual basic pay bump since 1983 – over 40 years. This highlights efforts to account for recent inflation and keep military pay competitive long-term.
Which military pay raise was the smallest?
The lowest military pay increase on record came in 1994 at just 2.2%. The vast majority of annual pay hikes have ranged between 2-4% in recent decades. 2024’s outsized 5.2% raise aims to make up ground.
Could Congress deny or change the 2024 military pay raise amount?
Yes. Although extremely unlikely given broad Congressional support, lawmakers could technically vote to amend or deny the 5.2% military pay raise during their Defense authorization negotiations. But for now, the approved House and pending Senate bills include the full ECI-based 5.2% bump.
Does the VA disability COLA match Social Security annually?
Yes. Legislation passed in 2022 ensures VA disability benefits receive a yearly COLA raise identical to Social Security’s increase. So disabled veterans will also see a 5.2% COLA boost to their monthly VA compensation in January 2024.
So in summary – pending full passage of the 2024 NDAA – members can expect to ring in the new year with fatter paychecks thanks to a rare 5.2% basic pay bump slated to take effect January 1st.
