Great news for junior enlisted servicemembers: On January 1, 2025, all servicemembers received a 4.5% raise in their base pay as part of the annual military pay increase. In addition, the 2024 National Defense Authorization Act also included a provision granting certain enlisted members an additional 10% pay bump, bringing the total increase for this group to 14.5%.
This change affects active-duty troops in E-1 through E-4 pay grades, starting with the April 2025 mid-month paycheck. Depending upon rank and length of service, the raise will contribute an additional $3,000-$6,000 annually for applicable members. For example, an E-2 with two years of military experience will see a salary increase of $4,000, from $27,000 to $31,000, not including any additional special pay or housing allowance.
How May This Pay Increase Impact Servicemembers?
This implementation of this pay raise will enhance the quality of life for lower-ranking military members and should boost retention rates. The Department of Defense regularly examines its military budget to ensure competitive pay and benefits are offered that will attract and retain qualified candidates. Military family advocates have previously indicated that base pay for junior enlisted members has not been proportionately increased to compensate for rising inflation rates and cost of living. Outside studies have also found that financial strain has been on the rise among this population, with more than 25% of junior enlisted servicemembers reporting food insecurity within the last year. Hopefully, this pay raise will help improve the financial well-being of servicemembers by offsetting the increased cost of living.
Making the Most of Increased Pay
As with any increase in income, whether it’s due to a pay raise or a tax refund, it’s important to incorporate those funds into your regular budget. If you don’t make a plan, you’re much more likely to spend that extra cash on non-essential purchases. Check out Financial Readiness for Military Families for tips and tools to help you with financial strategies at every stage of your career and military life.
For more information on servicemember pay scales, visit Defense Finance and Accounting Service (DFAS) to view updated pay charts.
Fortify Your Financial Future
Use your finances to your benefit. Gaining extra income is a great time to review your life insurance coverage to ensure you’ve got enough for the way your life looks like now, and what it means for your family’s future. Speak with an Armed Forces Mutual Membership Coordinator about your options at 877-398-2263, or get a free quote online now.