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What troops need to know about the basic pay raise in 2025
Tactical

What troops need to know about the basic pay raise in 2025

Jimmie Dempsey
Last updated: March 7, 2025 1:01 am
Jimmie Dempsey Published March 7, 2025
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Note: Whether it’s health care, retirement benefits, family support and child care, VA benefits or other programs, getting smart about the rewards you have earned is worth your time. Although it is not yet clear to what extent federal cuts will affect DOD programs — including quality-of-life initiatives — these benefits were in place as of this writing.

Visit this page for all of our latest coverage surrounding military and veteran pay and benefits.

All military members saw a significant pay raise in January 2025, but some troops will get even more this spring.

Congress approved a massive pay raise for junior enlisted service members in late 2024, which is set to go into effect April. The move will bring paychecks for nearly all troops to more than $30,000 annually.

Basic pay is determined by a person’s rank and length of service, with automatic raises when troops meet certain time and promotion markers. Congress also determines how large of a pay raise all troops should receive each year.

The figure is tied by law to the anticipated increase in private-sector pay, but lawmakers in the past have approved bigger raises to help with recruitment and retention, or smaller raises to save money for other military priorities.

Currently, the most junior enlisted service members make around $24,000 a year in basic pay (not including allowances, special pay and other benefits), while enlisted troops nearing retirement typically earn about $70,000 annually.

Officer pay is significantly higher. Junior officers earn close to $40,000 a year, while senior officers nearing 20 years of service can make in excess of $170,000. That means that even a small change in the anticipated pay raise calculations can make a big difference for military families.

The annual military pay increase takes effect in January each year. In 2025, that pay raise was 4.5% for all troops, the third consecutive year of across-the-board paycheck boosts of more than 4% for the military.

For an E-7 with 10 years military experience, or an O-2 with two years experience, the 4.5% raise means about $200 more each month and roughly $2,600 a year in extra salary.

Targeted pay raises

In a normal year, that January pay boost is the only salary increase troops see. But because of legislation passed last year, junior enlisted troops (those ranked E-4 and below) will see an additional 10% pay increase this spring, giving their paychecks a welcome mid-year raise.

The junior enlisted boost is expected to benefit tens of thousands of young troops. Those ranked E-2 with two years service would see their base salary rise from about $27,000 now to $31,000 a year. Troops ranked E-4 with three years in the armed forces would see their pay rise from $35,000 a year to more than $40,000 annually.

The White House issues its target for the hike each August, either going along with the projected rise in private-sector wages, known as the Employment Cost Index, or offering justification for proposing a different rate.

Congress has the final say. In the past, lawmakers have overridden attempts by the White House to submit lower pay raises that would save money for other priorities.

But in recent years, the executive and legislative branches have been in sync on the annual pay raise. Congress has not adopted a raise below the ECI calculation since 2015.

2026 pay boost

Since the start of the all-volunteer military force in 1973, Congress has authorized a pay raise of at least 1% for troops every year, even during budget cycles where other civilian wages held steady. Those increases have grown to 2.5% or more since 2018.

The 2024 pay increase, which took effect Jan. 1 of that year, was 5.2% — the largest bump since 2002 and the second-biggest boost in 40 years. The 2025 raise of 4.5% was not quite as generous, but still means that military pay grew by nearly 10% over the last two years.

Both of those pay boosts matched the federal formula based on the annual Employment Cost Index calculation, and somewhat offset concerns about covering increased living costs over the last few years.

The ECI calculation for 2026 sits at 3.8%. If approved, it would be the lowest pay raise since 2022 — which was 2.7% — but would still be higher than any of the raises military members received between 2010 and 2022.

For junior enlisted troops, that proposed 2026 raise would mean about $1,200 more in take-home pay next year. For senior enlisted and junior officers, the raise would add about $2,500 more. An O-4 with 12 years of service would see almost $4,300 more over 2025 pay levels.

Lawmakers are expected to debate the pay raise level along with the rest of the defense budget over the spring and summer.

Congress typically fails to approve the federal budget until late in the calendar year, after each fiscal year begins Oct. 1. But the new pay raise still goes into effect on Jan. 1 annually.

Leo covers Congress, Veterans Affairs and the White House for Military Times. He has covered Washington, D.C. since 2004, focusing on military personnel and veterans policies. His work has earned numerous honors, including a 2009 Polk award, a 2010 National Headliner Award, the IAVA Leadership in Journalism award and the VFW News Media award.

Read the full article here

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