Military Pay Raise

For the past five years, the method used for figuring out the final pay raise for military personnel has been the same. The lawmakers use the Employment Cost Index formula to calculate how much of a pay raise the military service members to get, and the 2024‘s pay raise is projected to be 2.7 percent based on that. 

While the military pay raise for 2024 would fall behind of recent years where the service members enjoyed a pay raise that’s 3 percent and over, 2.7 is still a decent rate for many that are in the US Armed Forces. 

Possible enhanced BAH rates

Although the pay raise for 2024 is set to be around this, the talks between the White House and Congress are ongoing for the Basic Housing Allowance. Most military personnel expect a higher BAH as the US sees significant increases in inflation compared to previous years. Even though this is good for the economy, the rise in rent prices affects many families and individuals connected to the Armed Forces.

As for the increase in the BAH rates, it can be anywhere from 2 percent to 5 percent, depending on the location. The areas where the cost of living is high will surely see a higher rate of increase compared to places with a low cost of living. 

When is the military pay raise announcement?

The pay raise is expected to be 2.7 percent, but it isn’t certain yet. Since the budget talks finish around December almost every year, it’s best to wait a little more. As soon as the Congress and the White House announces the military pay charts for 2024, we’ll keep you updated. After the pay raise is announced, the new pay rates are going to be effective starting from January 1st, 2024. You will get your first increased paycheck on the 14th of January. 

Considering that the tax incentives are given to those with children, you are most likely to pay less in taxes although you’ll earn more during the tax year. Also, the increases in the tax brackets also balance these out, which means more tax benefits for you – if you have children.