RSS feed for comments on this post.
Private Sector W&S at 1.7%
October 28th, 2011
Today, the United States Employment Cost Index (ECI) was released; whereas this is a normal quarterly event, this quarter’s result is the one of most importance to the members of our military. It is the quarterly release that presidents have used to make a proposal for the military pay increases for over a decade in order to ensure our military member’s compensation keeps pace with that of the private sector. Specifically, the private industry worker’s wage and salary series of the ECI. This year’s increase is a reported, 1.7% for the 12 month period ending September 2011.
Expect President Obama to announce a military pay raise of 1.7% sometime in February 2012 as part of his budget proposal for FY-2013.
Well, that is the way in normally works, but of course, it may not be as simple as that this time. With the ever present debt crisis, congress may soon take action that would affect the way in which military pay and compensation is determined. FY-2013 is shaping up to be a tumultuous year, and congress doesn’t even have a handle on FY-2012 yet! Don’t expect things to get more clear anytime soon – with the elections looming, a stubbornly high unemployment rate and cuts having to come from somewhere, expect the defense budget to be in for some very heavy seas.
Provided congress passes and the president ultimately approves the 1.6% raise for 2012, here is what the 1.7% raise would do for 2013 base pay (active and reserve personnel).
Read Comments (0)
