2014 Military Pay Raise of 1% Recommended by DoD

February 6, 2013

DoD LogoThe Defense department is proposing a 1% pay raise for servicemembers as part of its 2014 fiscal budget request to Congress.  Pentagon officials say the raise is less than the previously projected 1.7% increase but allows the DoD to maintain investments in readiness during a time of slower defense spending.  While many people view this as a pay cut Defense Secretary Leon Panetta says “No one is getting a pay cut, but we will provide a pay raise that’s smaller than we’ve seen in past years in order to achieve some savings by virtue of what we confront in the compensation area,”

The Defense Department will continue to provide key benefits the following areas:

  • Healthcare
  • Military Retirement
  • Military Housing Allowance
  • Special Pay
  • Tuition Assistance

Defense Secretary Leon Panetta says the Pentagon will ask for new investment in transition assistance, sexual assault prevention, suicide prevention and family programs.  The 2014 budget also calls for another round of base closures, re-alignment and reductions in total force.

Defense officials say everything changes if sequestration occurs March 1st.  For instance, the DOD is looking at furloughs for as many as 800,000 civilian employees.  This would mean a 20% pay cut.  “It’s a lousy, lousy way to treat people frankly,” the secretary said.

The Pentagon initially calculates pay raises utilizing the Labor Department’s Employment Cost Index

Here are the most recent military pay raises

  • The FY 2012 request includes a 1.6% military pay raise, effective 1 January 2012 (1.55% over the fiscal year).
  • The FY 2013 request includes a 1.7% military pay raise, effective 1 January 2013 (1.68% over the fiscal year).

For more information see the news segment from The Pentagon Channel.