Military Pay Raise 2023 Is Huge, Get Prepared for a Bigger Paycheck
Pay raises are coming to troops in 2023, the biggest raise offered in 20 years. The military pay raise 2023 stipulations are important for those serving and their families as everyone continues to work to fend off inflation and make sure their financial health is where it needs to be. Learn more about the increases coming to service members and how they can impact your household.
What To Know About the Military Pay Raise 2023
Will military get a pay raise in 2023? Yes, service members are going to get a lot more money on their paychecks, as the military pay raise 2023 is the largest in 20 years. A welcomed sight as purchasing power continues to shrink due to nationwide inflation that Americans continue to battle.
Thanks to the yearly defense authorization bill, active-duty troops, drilling Guards, and those in the Reserves will enjoy a 4.6% pay raise. Not only is that much more than the previous increase of 2.7% in 2022, but it’s also the largest in two decades.
While the 2023 National Defense Authorization Act (NDAA) still has to pass Congress, all indications point to it doing so. This will mean junior troops will see their yearly income increase by $1,300, with a $2,500 increase for senior officers.
The Largest Increase in 20 Years, But Don’t Get Too Excited
As of this writing, the 2023 NDAA has passed the house and is headed to the Senate, where it’s expected to pass. The military pay raise 2023 is necessary to help troops not so much keep up with the Joneses but rather keep up with inflation.
Even though service members will welcome more cash in their pockets and this increase is larger than any for quite some time, pesky inflation is sure to make sure it doesn’t feel as good as it might seem.
This isn’t the most positive point to be made about the 2023 military pay increase, but it’s still a very important one. Understanding how your finances are affected by inflation is an imperative part of keeping your household’s finances in check and avoiding unnecessary risks.
It’s an unfortunate reality for service members and households in civilian life, alike. Dollars don’t go as far as they used to, and an increase in pay may help, but it doesn’t fix everything. Fortunately, paychecks aren’t the only thing increasing for the upcoming year.
If you spend enough time in the military, you’ll learn soon enough that other forms of compensation aren’t just a great perk but can often be necessary for overcoming the costs associated with serving in the American Armed Forces.
The 2023 Military Pay Raise Isn’t the Only Increase
Originally, bonuses were proposed to be a part of the 2023 NDAA, as it was previously reported that the sweeping defense bill would include a 2.4% inflation bonus for troops, but sadly this is no longer the case. However, there are other forms of compensation already in play for some.
An 11% increase in Basic Allowance for Subsistence (BAS) rates is coming to help active-duty troops who live outside their base’s barracks. BAS payments will increase from $280.29 to $311.68 for officers in 2023 and from $406.98 to $452.56 for enlisted members.
Additionally, the Basic Needs Allowance (BNA) qualification has been extended to troops with household incomes at 150% of the poverty line, up from 130%. Along with the 2023 military raise, both measures aim to help amid the difficult inflation troops are facing, but only time will tell.
The military pay raise 2023 has a tough task ahead of it in that it must be able to support troops hit hard by inflation as well as increase the perception of a volunteer force struggling to find volunteers. Overall, there are plenty of factors to consider, but troops can use any bit of help they can get.
Suggested read: Do You Qualify For Basic Needs Allowance?