Every year, military basic pay gets an across-the-board raise. Here's what's projected for 2027, how the number is actually decided, and why it matters for more than just your paycheck.
By law, the default annual military pay raise is tied to the Employment Cost Index (ECI). Based on that formula, the baseline raise for 2027 is projected at about 3.6%. As in recent years, Congress and the President can propose more than the formula amount — proposals in the 5–7% range have circulated, often targeted at junior enlisted members.
Under U.S.C. Title 37, the automatic raise equals the ECI's measure of private-sector wage growth. The President can propose an alternative, and Congress can authorize a different (usually higher) amount. Recent years show the pattern: 5.2% (2024), 4.5% plus a targeted boost for junior enlisted (2025), and 3.8% (2026).
A pay raise quietly improves your retirement in two ways:
Our calculator already projects future pay using the historical average annual raise, then compounds your TSP and computes your pension. Adjust the projected raise to model different scenarios.
As of mid-2026, the two chambers of Congress have advanced different numbers in their draft defense bills, which must be reconciled before a final raise is signed into law:
| Proposal | Raise | Notes |
|---|---|---|
| House NDAA draft | 5–7% (tiered) | Largest increases targeted at junior enlisted — roughly 7% for E-5 and below, 6% for mid-grades, 5% for senior ranks |
| Senate NDAA draft | 3.6% (flat) | Matches the ECI-based formula amount for all ranks |
The final figure lands somewhere in — or between — these once the House and Senate reconcile their bills, typically before the end of the prior year, effective January 1.
| Year | Across-the-board raise |
|---|---|
| 2024 | 5.2% |
| 2025 | 4.5% (plus a targeted boost for junior enlisted) |
| 2026 | 3.8% |
| 2027 (projected) | ~3.6% baseline; 5–7% proposed |
Suppose your basic pay is $4,000/month ($48,000/year). A 3.6% raise adds about $144/month ($1,728/year); a 7% raise adds about $280/month ($3,360/year). And because your TSP contribution is a percentage of basic pay, a raise automatically increases both your contributions and — under BRS — your government match, with no action on your part.
Project your TSP & pension with the calculator →It's locked in when the annual National Defense Authorization Act (NDAA) is passed and signed, usually late in 2026, taking effect January 1, 2027.
By law, the automatic raise equals the Employment Cost Index (ECI) measure of private-sector wage growth. Congress and the President can authorize more than that formula amount.
Yes, indirectly. Raises late in your career lift your High-3 average (your highest 36 months of basic pay), which is the base your pension is calculated on.
Related reading: BRS vs. High-3 · How the TSP 5% match works · Military retirement pay at 20 years