2014 U.S. Military Basic Pay Raise
On December 23, 2013, President Obama signed Executive Order 13655, "Adjustments of Certain Rates of Pay" that made the one percent pay raise for 2014 official. According to the order, the pay is "effective on the first day of the first applicable pay period beginning on or after January 1, 2014."
December 19, 2013, with a late night vote, the United States Senate passed the 2014 National Defense Authorization Act by a vote of 84-15. The bill will now be sent to President for signature ensuring the one percent military raise for 2014. Expect everything to be in order for the pay raise to be effective, January 1, 2014.
December 12, 2013, the House overwhelmingly passed the 2014 National Defense Authorization Act by a vote of 350-69. The bill is now expected to be considered in the Senate on late Thursday, December 19th. The 2014 NDAA does not change the President's proposed one percent military raise, so unless a change does occur, Servicemembers should see the raise of one-percent effective January 1, 2014.
December 9, the House and Senate Armed Services Committees have reached a compromise on the 2014 National Defense Authorization Act. The Committee's compromise does not specifically address the military pay raise percentage for 2014. So, as it stands, it appears that the President's one-percent raise will be a reality. It is expected that the full House will pass the NDAA by Friday afternoon, and the Senate will then take up the measure next week.
August 30, President Obama informed Congress that he will be exercising his powers as President to cap the military pay at one-percent for 2014. Congress can still override the President's cap and send him the 1.8% per current Title 37 mandate; however, Congress would need to find the additional funding required to make this a reality, and finding the additional $580 million will be difficult with the state of today's economy.
July 30, the Senate's Defense Appropriations subcommittee passed the 2014 defense spending bill. The Senate's version contains just a one percent pay raise as requested by the President and the Department of Defense, and is 0.8 percent less than what was approved in the House. The bill now moves to the Senate Appropriations Committee for mark-up before it is presented to the full Senate.
July 22, the White House Budget Office relayed a threat to veto the 2014 defense bill if it contains a pay raise which is more than President Obama's proposed one percent.
As expected, on June 14, the full House voted for passage of H.R. 1960, the National Defense Authorization Act for Fiscal Year 2014 by a vote of 315 to 108. The House's version of the bill has the 1.8 percent pay raise per the Employment Cost Index in tact. It is currently expected to be opposed in the Senate who's Armed Services Committee voted to approve the 1.0 percent raise as requested by the President.
On June 11, Senate Armed Services Committee’s Military Personnel Panel signaled they would follow the proposal for a one percent base pay raise for 2014 made by President Obama at the urging of the Department of Defense. The Senate committee's endorsement is in opposition to the House Armed Services personnel committee's approved 1.8% pay raise they voted on last week.
April 10, President Obama released his budget proposal for Fiscal Year 2014. In his proposal, he recommends to congress a one percent pay raise for Uniformed Members of the Armed Forces. Congress must pass the President's proposal for it to take effect; in action by Congress will automatically invoke the 1.8 percent pay raise per Title 37.
On February 6, 2013, the Pentagon's Press Secretary announced that the military pay raise proposal in the President's Department of Defense budget for 2014 will be just one percent. One percent is 0.8% less than called for by current law, and will be below the projected 1.6 to 2.0% raise in the rate of inflation for 2014 as projected by the Federal Reserve. If the pay raise of one percent comes to be, then military personnel will be taking a pay cut in real dollars. Until the actual budget request is made public, this chart will continue to display the 1.8% estimated raise based on current law cited in U.S.C. Title 37.
On October 31, 2012, the United States Employment Cost Index (ECI) was released. The following pay charts are based on the private industry worker's wage and salary series of the Employment Cost Index's increase of 1.8 percent for the 12 month period ending September 2012, and it is expected to be part of the President's budget input for the United States Government, Fiscal Year 2014. The actual ECI percentage is 0.2 percent less than originally projected by the Congressional Budget Office.