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2020 Military Pay Raise Impact

military pay raise

A 3.1% military raise for 2020 is set to take effect as of Jan 1, 2020.. This is higher than the 2019 raise of 2.6% and the highest raise since 2010, when the raise was 3.4%. Of course, before this is to happen, there will be debate about the raise within Congress and won’t be approved until later this year.



The 2021 Defense Bill calls for a 3.0% military pay increase.  You can check the 2021 projected military pay charts here.


Military Pay Raise Impact

With the proposed 3.1% raise does pass, what does that mean for you?

Here are some numbers to think about:

E-3 with over Two Years

Currently your pay is $2,105.70 per month, and would increase to $2,171.00 a month after the pay raise.

E-5 with over Six Years

You currently make $3,001.50 a month, and would make $3,094.00 a month after the pay raise.

0-3 with over Two Years

Your current pay is $4,819.20 a month, and would now be $4,969.00 a month after the proposed pay raise.

0-5 with over Six Years

You currently make $7,105.50 a month, and would make $7,326.00 a month after the pay raise.

These amounts refer to basic pay only, not to BAS, BAH or any other special pays.

As an E-3 with over two years, you would find $66 more a month in your basic pay, as an 0-5 with over six years, you would find $221 more a month. What you can do with this extra money depends on your family, and your goals.

While $66 isn’t a ton of extra money, you can add this to your grocery budget, put the money towards a trip home, or pay off some extra debt. With an extra $221 you could put towards a car payment, use in your clothing budget, or even add to your retirement accounts. It’s always a good idea to make plans for every dollar you bring into your home by keeping and using a budget. That way, you are clear about your goals, won’t waste money, and any type of raise will bring you closer to where you want to be.

Although military pay raises happen every year, they can vary in how much they are. The lowest pay raise in the last 10 years was in 2014 and 2015 with a 1% raise, and the highest was in 2010, with a 3.4% raise. The proposed amounts are based on the US Employment Cost Index (EDI) and linked to the increase in private sector wages. The proposed military pay raise amount can change based on what congress decides when debating the budget towards the end of the fiscal year.