Projected Raise of 1.6%

2012 Pay Raise

Currently, military pay raises are based on the wage and salary series for private industry workers as indicated in the Employment Cost Index that is released on the last business day in October each year. Today happens to be that day. This years increase was 1.6 percent for the current 12-month period; meaning, President Obama will propose a minimum of a 1.6% military base pay raise for 2012.

When congress reconvenes after the elections, one of their priorities will be to complete work on the 2011 Defense Budget. One of the many topics still unresolved for 2011, military pay. The Senate approved the president’s 1.4% proposal. The House maintained the pursuit of closing the pay gap by passing a 1.9% raise. It is anybody’s guess as to how this will end. That said, I have the 2012 military pay projections by rank and time in service, active and Reserve, available for your enjoyment using the president’s 1.4% for 2011 as the starting point. If the 1.9% ultimately wins out, then the chart will be updated to reflect the new numbers.

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