The 2017 military pay increase has been signed into law at 2.1% keeping with private sector wage growth. This increase is .8% higher than the 1.3% increase in 2016. The pay increase will mean about $550 more a year for most junior enlisted troops and about $1,800 for officers.
See the proposed 2018 Military Pay here.
The 2.1% increase went into effect on January 1, 2017, as approved by the FY2017 National Defense Authorization Act. Typically Congress and the President agree on a final version and sign into law in December.
See the 2017 military pay charts. 
The annual pay increase for service members is determined by the Bureau of Labor Statistics’ Employment Cost Index and growth in private-sector wages. However, by law, Title 37, Chapter 19, Section 1009, the President can set an alternate pay raise which is being proposed in the 2017 Defense Budget, and was also proposed and implemented for 2016.
Historical Military Pay Raises by Year
| Year | Military Pay Raise % | Year | Military Pay Raise % |
|---|---|---|---|
| 2021 | 3.0% (proposed) | 1991 | 4.10% |
| 2020 | 3.1% | 1990 | 3.60% |
| 2019 | 2.6% | 1989 | 4.10% |
| 2018 | 2.4% | 1988 | 2.00% |
| 2017 | 2.10% | 1987 | 3.00% |
| 2016 | 1.30% | 1986 | 3.00% |
| 2015 | 1.00% | 1985 | 4.00% |
| 2014 | 1.00% | 1984 | 4.00% |
| 2013 | 1.70% | 1983 | 4.00% |
| 2012 | 1.60% | 1982 | 14.30% |
| 2011 | 1.40% | 1981 | 11.70% |
| 2010 | 3.40% | 1980 | 7.00% |
| 2009 | 3.90% | 1979 | 5.50% |
| 2008 | 3.50% | 1978 | 7.10% |
| 2007 * | 2.70% | 1977 | 4.80% |
| 2006 | 3.10% | 1976 | 5.00% |
| 2005 | 3.50% | 1975 | 5.52% |
| 2004 * | 4.20% | 1974 | 6.20% |
| 2003 * | 4.70% | 1973 | 6.70% |
| 2002 * | 6.90% | 1972 | 7.20% |
| 2001 | 4.10% | 1971 | 7.90% |
| 2000 | 6.20% | 1970 | 8.10% |
| 1999 | 3.60% | 1969 | 12.60% |
| 1998 | 2.80% | 1968 | 6.80% |
| 1997 | 3.00% | 1967 | 5.60% |
| 1996 | 2.40% | 1966 | 3.20% |
| 1995 | 2.60% | 1965 | E: 11% O:6% |
| 1994 | 2.20% | 1964 | 2.5% - 8.5% |
| 1993 | 3.70% | 1963 | 12.60% |
| 1992 | 4.20% | 1962 | 0.00% |
* 2002, 2003, 2004, and 2007 are the average percentage raise as military pay raises differed for various military pay grades.
2017 military pay increases are for all branches of the U.S. Armed Forces; Air Force, Army, Coast Guard, Marines, Navy, and Reserve forces where applicable.
