Military pay in the U.S. is based on a few key factors: rank, years of service, and annual raises. Every year, Congress usually approves a pay increase to help keep up with inflation and civilian wage growth.
These raises are often tied to something called the Employment Cost Index (ECI), which tracks how much civilian wages are rising. Higher ranks and more years of service mean higher base pay, and some service members may also get extra pay for special duties or housing.
What Recent 2025 Raises Look Like
- 4.5% across-the-board base pay raise, effective January 1, 2025, for nearly all service members
- Additional 10% targeted bump for junior enlisted grades (E‑1 through E‑4), taking their total raise to 14.5% as of April 1, 2025
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