A 2.7 Percent Military Pay Raise for 2022?

Earlier this year, both Houses of Congress passed their version of the National Defense Authorization Act for 2021 (NDAA for 2021). Both versions of the bill support President Trump's initial budget proposal which included a 3.0 percent military pay raise for 2021. Both Houses are currently at work reconciling the difference in the two bills, but the pay raise of 3.0 percent should hold fast, and the final NDAA for 2021 should be wrapped up and signed by President Trump before the new year begins.

The President's pay raise proposal was rooted in Title 37 of the United States Code, and that is what makes this morning's release of the Employment Cost Index so important.

Today, , at 0830 EST, the United States Employment Cost Index (ECI) was released by the United States Bureau of Labor. Per United States Code Title 37, the specific ECI stat used is "wages and salaries, for private industry workers for the period ending September 2020"; this morning's number is 2.7.

So, unless the President decides to propose a different figure in the coming Spring when he delivers his budget proposal, or if Congress decides to write as part of the National Defense Authorization Act of 2022 a different amount, then the statutorily diven pay raise for 2022 will be 2.7 percent. Varying from the ECI figure has happened in the past, but it is a relatively rare occurrence.

So, in doing the math, add the 2.7 percent figure to the 2021 military pay chart, then you get what the 2022 military pay chart would look like. This ain't rocket science!

The attached 2022 chart will be immediately updated if/when the raise percentage changes via either Presidential proposal or Congressional action.

And, now we wait for the President's budget release expected sometime in the Spring of 2021.

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