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1 1 (December 30, 2024)

handle is hein.crs/goverve0001 and id is 1 raw text is: FY2025 NDAA: Military Basic Pay Reform Proposal Updated December 30, 2024 In 2023, the House Armed Services Committee (HASC) established a Quality of Life (QOL) Panel to develop legislative proposals in support of military servicemembers and their families. 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. The Servicemember Quality ofLife Improvement and National Defense Authorization Actfor Fiscal Year 2025 (FY2025 NDAA, P.L. 118-159), signed into law on December 23, 2024, allows for a 4.5% pay raise for all servicemembers on January 1, 2025, and enacts an additional pay raise for junior enlisted servicemembers, scheduled for April 1, 2025. 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 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). 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 on January 1 of each year; however, Congress has occasionally authorized alternative pay raises or caps for specific paygrades (see CRS In Focus IF10260, Defense Primer: Military Pay Raise). Prior to 2024, military pay tables were last reformed in the FY2007 NDAA (P.L. 109-364). This legislation 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. Legislation The FY2025 President's budget request proposed a 4.5% pay increase for all military servicemembers, consistent with the statutory formula. This 4.5% pay raise is, therefore, in effect for all servicemembers Congressional Research Service https://crsreports.congress.gov IN12367 CRS INSIGHT Prepared for Members and Committees of Congress

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