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1 [1] (January 26, 2026)

handle is hein.crs/govethx0001 and id is 1 raw text is: Congressional Research Service Inform ing the egislative debate since 1914 Defense Primer: Military Pay Raise The phrase military pay raise, frequently used in Pay t discussions of military compensation, almost always refers milit to the annual increase in basic pay for members of the uniformed services. By law (37 U.S.C. §1009), basic pay is Ho automatically increased at the start of each calendar year by Cal an amount linked to the change in the Employment Cost Secti Index (ECI), although the President or Congress may perm override this statutory adjustment. basic Pay Raise for 2026 autor The adjustment in basic pay for 2026 under the third statutory formula is 3.8%, effective January 1, 2026. te1 Iept What Is Basic Pay? 2023 Basic pay is one component of the military compensation calen package, which also includes housing, subsistence, health was care, and retirement benefits. For most servicemembers, it is the largest element of the compensation they receive in How their paycheck and typically accounts for about three-fifths may: of an individual's regular military compensation (RMC). the a RMC is the total of the following elements that a member a la of the uniformed services accrues or receives, directly or auto indirectly, in cash or in kind every payday: basic pay, basic allowance for housing, basic allowance for subsistence, and Sta Federal tax advantage accruing to the aforementioned The allowances because they are not subject to Federal income the s tax. (37 U.S.C. §101(25)). (See CRS In Focus IF10532, ECI Defense Primer: Regular Military Compensation.) of20 The rate of basic pay an individual receives varies based on Co his or her paygrade (rank) and years of military service. For for example, as of April 1, 2025, a newly enlisted recruit The (paygrade E-1) with four or more months of service and in ba less than two years of service received $2,319.00 in basic enac pay per month, while a more senior enlisted person 2026 (paygrade E-6) with between 10 and 12 years of service alter received $4,585.20 per month. A newly commissioned of 3. officer (paygrade 0-1) with less than two years of service received $3,998.40 in basic pay per month in 2025, while a more senior officer (paygrade 0-4) with between 10 and 12 years of service received $9,075.00 per month. Updated January 26, 2026 ables are available at https://www.dfas.mil/ iarymembers/payentitlements/Pay-Tables. w Is the Annual Increase in Basic Pay culated? on 1009(c) of Title 37, U.S. Code provides a anent formula for an automatic annual increase in pay that is indexed to the annual increase in the ECI for wages and salaries, private industry workers. The matic adjustment is equal to the increase in the ECI from the third quarter of the third preceding year to the quarter of the second preceding year. For example, in the 12-month period between the quarter that ended in September 2022 and the quarter that ended in September , the ECI increased by 4.5%. Hence, the pay raise for dar year 2025, as calculated by the statutory formula, 4.5%. ever, under subsection (e) of this statute, the President specify an alternative pay adjustment that supersedes utomatic adjustment. Additionally, Congress may pass w to specify the annual pay raise, superseding the matic adjustment and/or any presidential adjustment. tutory Formula for 2026 adjustment in basic pay for calendar year 2026 under tatutory formula is 3.8% (reflecting the increase in the between the third quarter of 2023 and the third quarter 24). n ressional and Presidential Action FY2026 President's Budget requested a 3.8% increase sic pay, equivalent to the statutory formula. The ted National Defense Authorization Act for Fiscal Year , (FY2026 NDAA, P.L. 119-60) did not include an nate pay authorization, allowing the statutory pay raise 8% to go into effect on January 1, 2026.