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1 1 (September 10, 2024)

handle is hein.crs/goveqop0001 and id is 1 raw text is: FY2025 NDAA: Military Basic Pay Reform Proposal Updated September 10, 2024 In 2023, the House Armed Services Committee (HASC) established a Quality of Life (QOL) Panel to develop proposals for an FY2025 National Defense Authorization Act (FY2025 NDAA). Several of the Panel's recommendations from the final report were included in the Servicemember Quality of Life Improvement Act (H.R. 8070). The bill became the vehicle for the House version of the FY2025 NDAA, known as the Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025. The Panel's effort included a review of the military basic pay tables. In its final report, the Panel noted concern about the adequacy of junior enlisted pay and recommended pay raises for E-1 through E-4 paygrades. Congress is considering whether to adopt these initiatives and other related compensation proposals as part of an FY2025 NDAA. Background Congress appropriates funds for military pay and benefits, generally authorized under Title 37 of United States Code (U.S.C.). 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 as published by the Defense Finance and Accounting Service (DFAS) for the calendar year. 37 U.S.C. 1009(c) 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 occasionally authorized alternative pay raises or caps for specific paygrades (see CRS In Focus IF10260, Defense Primer: Military Pay Raise). The most recent reform of military pay tables was authorized in the FY2007 NDAA (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 committee report to accompany the bill stated the targeted raises would allow these groups to achieve a level of income that is more comparable with their private sector peers. Congressional Research Service https://crsreports.congress.gov IN12367 CRS INSIGHT Prepared for Members and Committees of Congress

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