How the Military Pay Raise 2022 Affects Your Salary
Great news for military members! You’re about to receive a 2.7% increase in your pay, thanks to a new budget proposal from the Biden administration alongside the release of last quarter’s Employment Cost Index (ECI). This military pay raise 2022 is hitting at a great time for a lot of service members.
Read on to learn more about when the pay raise goes into effect and what it means for your monthly pay.
Military Pay Raise 2022: The Dates You Need To Know
The 2022 military pay raise of 2.7% officially went into effect on January 1, 2022. Service members should have seen this raise on their military pay stub by January 14, 2022. If you did not, reach out to your branch’s Defense Finance and Accounting Service (DFAS) office.
For junior enlistees, this could mean roughly $790 extra per year. Junior officers could see up to $1,400 extra, and senior officers may see a bump as high as $2,600 per year.
The military pay 2022 boost is just slightly less than the 2021 increase, which saw military members getting a 3% raise in their salary.
Keep in mind that your military pay will also depend on how many years you have been in service. For example, someone of a specific rank who has five years of military service will make less per month than someone of the same rank who has served for over 20 years.
Save up even more money with these 55 Best Year-Round Military Discounts (2022 Edition)
How Does the ECI Affect Military Pay?
The ECI is an important factor in determining pay raises. It’s a U.S. economic study put out quarterly by the Bureau of Labor Statistics, and it details important labor costs across the country. The ECI takes into account wages and benefits across companies to be broken down by industry and occupations.
In short, the ECI helps businesses understand where quarterly employee compensation is in comparison to previous quarters in their market and inflation. When the index jumps, this generally means employers are heavily suggested to give a pay raise to their workers, especially when the ECI jumps 2% or more.
The military always stays in step with the current ECI, and this quarter’s increase of 2.7% means that military members will receive a 2.7% military pay increase.
What Military Branch Pays the Most?
Your pay depends on your rank and years of service, not which branch you are in.
Just like the military pay raise 2022 is being applied across the board and is not exclusive for certain ranks or branches, your pay won’t be different due to your branch of service alone.
The Issue With This Military Pay Raise
Though everyone is happy to see service members get a bump in pay, there are concerns that the military pay increase 2022 will not last long enough to have a positive effect.
President Biden recently passed the National Defense Authorization Act (FY 2022), which allocates $768 billion to national security programs, including military operations. However, one small caveat of this act could put the 2022 military pay raise in jeopardy.
This bill was categorized as a policy bill rather than a spending bill, meaning new action must be taken by Congress in order to ensure that the military pay raise 2022 remains in effect.
Others believe pay raises for the military could see a sharp increase in coming years. Capitol Hill debates on the military pay raise 2022 and beyond are set to begin in March and April.
What will you do with the extra pay? These credit cards for military members can give you flexibility: 3 of the Best Credit Cards for Military & Veterans in 2022