Editor's note: This is the first installment of New Year, New You, a weeklong look at your financial health headed into 2025.
Many U.S. military service members anticipate significant increases to their pay and allowances in 2025, such as a 14.5% pay raise for junior enlisted troops and an average 5.4% bump in Basic Allowance for Housing (BAH) rates, varying by location and other factors.
Meanwhile, veterans, retirees and survivors receive a 2.5% increase to their benefits in 2025, based on the Social Security Administration's annual Cost-of-Living Adjustment, or COLA.
Here are some of the pays and allowances that U.S. service members and veterans may be entitled to receive in 2025.
2025 Military Basic Pay
Active-duty service members won't all receive the same percentage increase in their basic pay in 2025 because of two factors:
- Congress authorized a bigger raise for junior enlisted troops in 2025.
- Top officers' pay is capped below that of certain civilian government executives.
Because junior enlisted members had a harder time affording basic needs, among other reasons, Congress approved a 14.5% raise for troops in the E-1 to E-4 paygrades in the fiscal 2025 National Defense Authorization Act, along with a 4.5% raise for all others tied to the Employment Cost Index -- except for those whose pay couldn't exceed a certain cap by law.
The 4.5% raises, and the smaller raises for the officers who hit the pay cap, kicked in Jan. 1, including for E-1s to E-4s, who get the remaining 10% starting in April.
Some officers won't receive the full 4.5% pay raise because their pay reached a cap. All O-10s, all O-9s, and O-8s with 30 or more years of service will make the same amount in basic pay in 2025 because their pay (along with that of O-7s, but they didn't hit the cap) must not exceed that of Level 2 of the federal Executive Schedule for civilian pay. Those senior officers will all make $18,808.20 a month in basic pay to stay under the civilian Level 2 rate of $225,700 a year.
See the 2025 Military Pay Charts.
2025 Basic Allowance for Housing (BAH)
The average BAH is up 5.4% in 2025 for the second year in a row. About a million service members receive the benefit. The new rates took effect Jan. 1.
The BAH calculation assumes service members will absorb 5% of their housing costs, meaning they will pay about $90 to $202 out of pocket in 2025, depending on their rank, their location and whether they have dependents. Local housing and utility costs determine BAH rates, so while most go up each year, some go down. In those areas, however, service members already living there can keep their existing rate.
The 5.4% average increase represents another larger-than-normal rate increase. The 2023 increase of 12.1% was up from 5.1% in 2022.
Calculate your 2025 BAH rate here.
2025 CONUS COLA
In addition to the BAH, some service members in areas with a particularly high cost of living -- costs that aren't limited just to housing -- receive the Continental United States Cost-of-Living Allowance (CONUS COLA).
Significantly more troops will receive the allowance in 2025. All areas receiving the CONUS COLA in 2025 are in California, Massachusetts or New York. About 61,000 service members will receive a total of about $51 million in CONUS COLA payments in 2025, up from 17,000 receiving $26 million in 2024 and 5,000 receiving $8 million in 2023.
These are the 2025 military CONUS COLA rates.
2025 Basic Allowance for Subsistence (BAS)
Service members get a few more dollars a month for meals in 2025. The monthly Basic Allowance for Subsistence, or BAS, covers the cost of meals for service members only, not for their dependents.
The BAS rates are going up about 1.2% in 2025, from $460.25 to $465.77 a month for enlisted members; and from $316.98 to $320.78 for officers.
Read more about the 2025 Basic Allowance for Subsistence.
2.5% COLA for Veterans' and Survivors' Benefits
Several benefits for veterans and their survivors increase each year based on the Social Security Administration's annual Cost-of-Living Adjustment, or COLA (not an allowance like the CONUS COLA but instead an across-the-board percentage increase in payments). This includes the pay of military retirees.
The Department of Veterans Affairs' COLA-based increases take effect Dec. 1 of each year. The 2025 increase amounts to 2.5%. That's down from the 2024 COLA of 3.2% and 8.7% in 2023, which was the largest in decades.
The following benefits received the 2.5% increase:
2025 VA Disability Pay
The tax-free payments are for veterans with at least a 10% disability rating from a service-connected physical or mental health condition. Rates range from $175.51 per month for a veteran with a 10% rating in 2025 to $4,544.23 per month for a 100% disabled veteran with a spouse, child and two dependent parents. Rates for additional children and spouses who require aid and attendance vary according to the veteran's disability rating.
See the 2025 VA Disability Pay rates.
2025 Special Monthly Compensation
Veterans receive the VA's Special Monthly Compensation benefit if they lost, or lost the use of, a limb or certain organs or extremities because of military service. Monthly rates range from $4,288.45 to $11,521.15 in 2025.
See the 2025 Special Monthly Compensation rate.
2025 Veterans Pension
Wartime veterans who are 65 or older, or permanently and totally disabled, and on a limited income may receive the VA's Veterans Pension, even if they don't have a known service-connected injury or illness. To receive it, the veteran must have served at least 90 days on active duty, with at least one day of it during wartime.
For 2025, a veteran or married couple must own less than $159,240 in assets for the veteran to qualify.
The Veterans Pension makes up the difference between the household income and a designated threshold, or income limit. For a single veteran with no dependents, the VA will pay the difference between the veteran's annual income and $16,956 in 2025; while the income limit for a veteran who needs aid and attendance and has one dependent is $33,548.
See the 2025 Veterans Pension rates.
2025 Survivors Pension
Certain survivors of deceased wartime veterans may also receive a pension, but the rates are lower, and the service requirement is higher. A deceased veteran must have served at least 24 months on active duty, with at least one day of it during wartime.
The VA will make up the difference between an unremarried surviving spouse's annual income, or that of an unmarried child, and $11,380 in 2025. The income limit is $21,696 a year for a surviving spouse who requires aid and attendance and also has a dependent.
Here are the 2025 Survivors Pension rates.
2025 VA Dependency and Indemnity Compensation (DIC)
Dependency and Indemnity Compensation ( DIC) is a rate received by survivors of certain deceased veterans. In 2025, the base rate is $1,653.07 for a surviving spouse, with additional amounts for children, aid and attendance, transitional benefits for the first two years, and being married to their late veteran for eight years while the veteran was 100% disabled. For the first two years, a surviving spouse requiring aid and attendance who qualifies for the eight-year provision, with two children under 18, would receive $3,582.68 per month, according to the 2025 rates.
Find out more about VA Dependency and Indemnity Compensation.
When Will You Get Paid?
Now that you have an idea how much you'll be getting, pencil in your 2025 pay days:
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