Largest Military Pay Raise In 20 Years Headed to Biden's Desk As Part of Defense Bill

The biggest pay raise for troops in two decades is headed to President Joe Biden's desk for his signature after the Senate approved the annual defense policy bill late Thursday.

This year's National Defense Authorization, or NDAA, endorses a basic pay raise for 2023 of 4.6%, far higher than 2022's 2.7%.

The bill, a piece of compromise legislation that had been debated for months, was approved with overwhelming support with 83 votes for and 11 opposed. That follows House passage last week, meaning all that's needed for the bill to become law is Biden's signature.

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A 4.6% increase will mean about $1,300 more next year for many junior troops and $2,500 for senior enlisted and junior officers. The raise will take effect in January.

The raise included in the NDAA matches what the Biden administration requested, which in turn matched what a formula set in a separate federal law said troops would be entitled to next year.

The largest pay raise in 20 years comes amid high inflation. While inflation has cooled somewhat in recent months, consumer prices were still 7.1% higher in November than the same point last year, according to the most recent Consumer Price Index update.

The pay bump joins other recently announced increases in allowances, including an average increase of 12.1% in Basic Allowance for Housing rates and a more than 11% bump to Basic Allowance for Subsistence rates.

-- Rebecca Kheel can be reached at rebecca.kheel@military.com. Follow her on Twitter @reporterkheel.

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