The 2020 military pay increase is currently proposed at 3.1%, which the DoD labels “the largest in a decade”. The proposed pay increase is part of the Fiscal Year 2020 Budget request sent by President Trump to Congress. Congress and the president still must approve and pass the increase into law.
New pay rates are effective January 1, 2020 and will be reflected on the paychecks that will be issued on January 15, 2020.
Typical Next Steps for a Military Pay Increase:
- President Trump releases his budget proposal for 2020 – Completed March 11, 2019
- Spring/Summer – House & Senate Armed Appropriations Committees work defense budget
- Fall/Winter – House & Senate pass the defense budget
- President Trump signed the 2019 NDAA into law on August 13, 2018 making the military pay increase official. Most likely, with a Democrat controlled House and Republican controlled Senate and Presidency, agreement on a budget will happen much later in the year. For instance, the 2018 and 2017 versions were signed in December when there was a divided government.
The annual pay increase for service members is determined by the Bureau of Labor Statistics’ Employment Cost Index and growth in private-sector wages. However, by law, Title 37, Chapter 19, Section 1009, the President can set an alternate pay raise which is being proposed in the 2019 Defense Budget, and is typical of most years.
Historical Military Pay Raises by Year
| YEAR | MILITARY PAY RAISE % | YEAR | MILITARY PAY RAISE % |
|---|---|---|---|
| 2020 | 3.1% (proposed) | 1990 | 3.60% |
| 2019 | 2.6% | 1989 | 4.10% |
| 2018 | 2.4% | 1988 | 2.00% |
| 2017 | 2.10% | 1987 | 3.00% |
| 2016 | 1.30% | 1986 | 3.00% |
| 2015 | 1.00% | 1985 | 4.00% |
| 2014 | 1.00% | 1984 | 4.00% |
| 2013 | 1.70% | 1983 | 4.00% |
| 2012 | 1.60% | 1982 | 14.30% |
| 2011 | 1.40% | 1981 | 11.70% |
| 2010 | 3.40% | 1980 | 7.00% |
| 2009 | 3.90% | 1979 | 5.50% |
| 2008 | 3.50% | 1978 | 7.10% |
| 2007 * | 2.70% | 1977 | 4.80% |
| 2006 | 3.10% | 1976 | 5.00% |
| 2005 | 3.50% | 1975 | 5.52% |
| 2004 * | 4.20% | 1974 | 6.20% |
| 2003 * | 4.70% | 1973 | 6.70% |
| 2002 * | 6.90% | 1972 | 7.20% |
| 2001 | 4.10% | 1971 | 7.90% |
| 2000 | 6.20% | 1970 | 8.10% |
| 1999 | 3.60% | 1969 | 12.60% |
| 1998 | 2.80% | 1968 | 6.80% |
| 1997 | 3.00% | 1967 | 5.60% |
| 1996 | 2.40% | 1966 | 3.20% |
| 1995 | 2.60% | 1965 | E: 11% O:6% |
| 1994 | 2.20% | 1964 | 2.5% – 8.5% |
| 1993 | 3.70% | 1963 | 12.60% |
| 1992 | 4.20% | 1962 | 0.00% |
| 1991 | 4.10% |
* 2002, 2003, 2004, and 2007 are the average percentage raise as military pay raises differed for various military pay grades.
2020 military pay increases are for all branches of the U.S. Armed Forces; Air Force, Army, Coast Guard, Marines, Navy, and Reserve forces where applicable.
