The Department of Defense recently announced a 4.6% military pay increase for 2023, making it the largest increase in over 20 years. Are you a member of the military or know someone who is?
Both active duty and reserve personnel are eligible to receive increased compensation. That’s why we put together this easy-to-understand Military Pay Chart for 2023. Learn everything you need about pay increases, position pay rates, and different types of military personnel.
Understanding your new salary doesn’t have to be complicated. Learn how this military pay increase will help your future financial goals.
Read on to make sure you fully understand what military position pay rates you’re entitled to receive. This 2023 military pay chart explains everything to know.
The 2023 Pay Increase
The Department of Defense has announced that the military pay rate will increase by 4.6% for 2023, compared to 2022 levels. This raise applies to active members of the Navy, Marine Corps, Army, Air Force, Coast Guard, and Space Force.
The increase affects various base pay rates and allowances for different military personnel in the US Armed Forces.
Why Does Military Pay Increase?
On December 23, 2022, President Biden signed into law the National Defense Authorization Act for Fiscal Year 2023, which included a 4.6 percent military basic pay raise effective on January 1, 2023.
The full Senate had previously approved the reconciled National Defense Authorization Act for 2023 by a vote of 83-11 on December 15, 2022, and sent it to President Biden for signature.
The military uses the Employment Cost Index (ECI) calculated by the U.S. Department of Labor. They do this several times a year to guide their annual pay increases and mirror private-sector wages and salaries nationwide.
The October ECI year-over-year change is used to determine the percentage pay raise for the following year. This number can be superseded by the President or Congress. This year, the 4.6% automatic adjustment from the ECI remained in place for 2023.
Factors That Affect Military Pay
Military members can expect to see an increase in their pay for 2023 compared to the previous year, with a 4.6% raise in base pay. The Basic Allowance for Housing (BAH) is excluded from gross income for tax purposes and can contribute a significant percentage of your paycheck.
The estimated monthly payment varies between enlisted personnel, officers, and rank. It also takes into account the number of years of service.
For example, in 2023, an enlisted service member who is on a pay grade of E-1 will receive a monthly paycheck of approximately $1,917.63 in basic pay. A more established person on a pay grade of E-6 could potentially earn a monthly salary of up to $4,171.03.
Pay for an active duty officer starts at a higher rate. They can expect to receive around $3,637.26 based on the new 2023 monthly pay chart. An officer with more seniority at a pay grade of O-4 who has served more than 10 years could earn a monthly wage of $8,254.82.
When Does Military Pay Change?
Military pay increases automatically in January every year and is reflected in the first pay period of the year.
The Army also announced in July 2022 that all soldiers on long-term, active-duty orders will now be paid semimonthly–on the first and 15th of each month–starting October 1, 2022.
This change is part of their new Integrated Personnel and Pay System and affects only about 11,000 people.
Understanding Your Military Leave and Earning Statement (LES)
The Leave and Earning Statement (LES) is an important document for service members to verify and keep every pay period. It shows your entitlements, deductions, allotments, leave, tax withholding, and Thrift Savings Plan (TSP).
The top of the LES displays information and what pay period this statement covers. Just below that is a row of boxes displaying a summary of your entitlements, deductions, and allotments which may reflect the retroactive activity.
Any overflow in these areas will be listed in the Remarks section. You’ll then see another box summarizing all the items plus the amount of your actual paycheck at the bottom.
On the bottom of your stub, smaller boxes display details of leave days balance; federal tax information including FICA, marital status, and exemptions; and TSP contributions.
What to Do if Your Military Pay Is Incorrect
If you have been tracking your LES and notice any changes in your compensation that you don’t understand, contact your payroll or finance office immediately.
Additionally, if you need further help, contact the appropriate service:
- Air Force, Army, Marine Corps, Navy or Space Force active duty or Reserve: Call 1-888-332-7411
- Retirees, survivors, or beneficiaries: Call 1-800-321-1080
- Former spouses or creditors with questions about alimony, child support, and another court-ordered garnishment: Call 1-888-332-7411
- Retirees: Contact the Coast Guard Pay & Personnel Center at 1-866-772-8724
Where to Find the Military Pay Chart 2023
The 2023 Military Pay Chart can be found on the official website of the Department of Defense. It outlines various base pay rates for officers and allowances for enlisted personnel in the US Armed Forces.
The chart also lists specific payments based on rank, years of service, and qualifications. You can find the official 2023 Military Pay Chart online.
Looking For More Information About Military Entitlement?
The Military Pay Chart 2023 is an essential resource for all military personnel and their families. It outlines the various base pay rates, allowances, and specific payments you’re entitled to. It’s worked out based on rank, years of service, and qualifications to help members understand how much they can expect to receive as compensation.
With this detailed information at hand, service members will be able to plan better financially for themselves and their families. If you have any questions about your military pay rate or entitlements, speak to an advisor today to make sure you’re earning what you deserve.