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1 1 (May 24, 2024)

handle is hein.crs/govepgp0001 and id is 1 raw text is: FY2025 NDAA: Military Basic Pay Reform Proposal May 24, 2024 In 2023, the House Armed Services Committee (HASC) established the Quality of Life (QOL) Panel to develop proposals for a FY2025 National Defense Authorization Act (FY2025 NDAA). On April 8, 2024, the QOL Panel released its final report with several recommendations included in H.R. 8070, the Servicemember Quality ofLife Improvement Act which serves as the base text for the HASC version of a National Defense Authorization Act for Fiscal Year 2025. One of the pillars of the Panel's effort was pay and compensation, which included a review of the basic pay tables. In its final report, the Panel noted concern about the adequacy of pay for junior enlisted servicemembers and recommended a pay raise of 15 % for enlisted servicemembers in paygrades E-1 to E-4 with a smaller pay raise for those between E-4 and E-5 to continue to incentivize retention at these paygrades. Congress may consider these initiatives and other related compensation proposals in debates around a FY2025 NDAA. Background Congress appropriates funds for military pay and benefits, generally authorized under Title 37 of United States Code. Basic pay is typically the largest component of military cash compensation, which also includes housing and subsistence allowances. The amount of basic pay varies based on a servicemember's paygrade (rank) and years of military service. The Defense Finance and Accounting Service (DFAS) publishes pay tables for the calendar year. Section 1009(c) of Title 37, United States Code provides a permanent formula for an automatic annual increase in basic pay that is indexed to inflation. This inflation-indexed pay increase generally applies across all paygrades; however, Congress has in the past authorized alternative pay raises or caps for specific paygrades (see CRS In Focus IF10260, Defense Primer: Military Pay Raise). The President's budget request for FY2025 included a proposed pay increase for all military servicemembers of 4.5%, which is consistent with the statutory formula. The most recent reform of military pay tables was authorized in the John Warner NDAA for FY2007 (P.L. 109-364). It included targeted pay raises for warrant officers and enlisted members serving in the mid- career (E-5 to E-7) grades and extended the basic pay table to 40 years, providing longevity step increases for the highest officer, warrant officer, and enlisted grades. The House Report to accompany the Congressional Research Service https://crsreports.congress.gov IN12367 CRS INSIGHT Prepared for Members and Committees of Congress

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