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1 [1] (December 30, 2024)

handle is hein.crs/govervm0001 and id is 1 raw text is: Congressional Research Service Informing the legislative debate since 1914 Defense Primer: Military Pay Raise The phrase military pay raise, frequently used in discussions of military compensation, almost always refers to the annual increase in basic pay for members of the Sect uniformed services. By law, basic pay is automatically perm increased at the start of each calendar year by an amount basic linked to the change in the Employment Cost Index (ECI), for although the President or Congress may override this auto statutory adjustment. from Pay Raise for 20251 The adjustment in basic pay for 2025 under the 2022 statutory formula is 4.5%, effective January 1, 2025. calen Congress enacted additional pay table increases for was junior servicemembers to take effect on April 1, 2025. WhatIs Basic Pay? Basic pay is one component of the military compensation package, which also includes housing, subsistence, health care, and retirement benefits. For most servicemembers, it is the largest element of the compensation they receive in their paycheck and typically accounts for about three-fifths of an individual's regular military compensation (RMC). RMC is the total of the following elements that a member of the uniformed services accrues or receives, directly or indirectly, in cash or in kind every payday: basic pay, basic allowance for housing, basic allowance for subsistence, and Federal tax advantage accruing to the aforementioned allowances because they are not subject to Federal income tax. (37 U.S.C. §101(25)). (See CRS In Focus IF10532, Defense Primer: Regular Military Compensation.) The rate of basic pay an individual receives varies based on his or her paygrade (rank) and years of military service. For example, in 2024, a newly enlisted recruit (paygrade E-1) with four or more months of service and less than two years of service received $2,017.20 in basic pay per month, while a more senior enlisted person (paygrade E-6) with between 10 and 12 years of service received $4,387.80 per month. A newly commissioned officer (paygrade 0-1) with less than two years of service received $3,826.20 in basic pay per month in 2024, while a more senior officer (paygrade 0-4) with between 10 and 12 years of service received $8,684.10 per month. Pay tables are available at https://www.dfas.mil/ militarymembers/payentitlements/Pay-Tables. Updated December 30, 2024 w s the Annual Increase in Basic Pay culated? on 1009(c) of Title 37, United States Code provides a anent formula for an automatic annual increase in pay that is indexed to the annual increase in the ECI wages and salaries, private industry workers. The matic adjustment is equal to the increase in the ECI the third quarter of the third preceding year to the third quarter of the second preceding year. For example, in 2-month period between the quarter that ended in September 2021 and the quarter that ended in September , the ECI increased by 5.2%. Hence, the pay raise for dar year 2024, as calculated by the statutory formula, 5.2%. However, under subsection (e) of this statute, the President can specify an alternative pay adjustment that supersedes the automatic adjustment. Additionally, Congress may pass a law to specify the annual pay raise, superseding the automatic adjustment and/or any presidential adjustment. Statutory Formula for 2025 The adjustment in basic pay for calendar year 2025 under the statutory formula is 4.5% (reflecting the increase in the ECI between the third quarter of 2022 and the third quarter of 2023). The 4.5% statutory pay raise is therefore, effective on January 1, 2025. Congressiona and Presidential Action for 2025 The FY2025 President's Budget requested a 4.5% increase in basic pay, equivalent to the statutory formula. The enacted Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025, (FY2025 NDAA, P.L. 118-159) included an additional pay table increase of 10.5% for junior servicemembers in the grades of E-1 through E-4 with smaller increases for servicemembers in grade E-5 with fewer than ten years of service. This additional pay raise is authorized to become effective until April 1, 2025.

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