Military service members in the ranks of E-1 through E-4 will receive a 14.5% raise next year. President Joe Biden signed the 2025 pay raises into law Dec. 23.
Most other service members will get a 4.5% pay bump. Some senior officers, including O-8s with 30 or more years of service, all O-9s and all O-10s, will receive smaller percentages because their pay can’t, by law, exceed that of Level 2 of the Executive Schedule, according to an executive order published by the Office of Personnel Management.
The 4.5% raise will take effect at the beginning of 2025, while the extra 10% raise for junior enlisted troops will kick in at the start of April. With the 14.5% raise, junior troops will earn about $3,000 to $6,000 more per year, depending on rank. For example, E-1s will make $27,828 per year, compared to $24,206 now, while E-4s with at least six years of experience will make $44,107, compared to $38,368 now.
See the January-March 2025 Active-Duty Pay.
See the January-March 2025 Drill Pay (Preliminary).
The pending 4.5% raise doesn’t quite match service members’ 5.2% increase in 2024 or 4.6% in 2023, but it still tops the 2.7% and 3% raises in 2022 and 2021, respectively.
While not as high as a House panel’s initial 19.5% proposal for a junior enlisted raise next year, the compromise 14.5% raise marks a major win for younger troops who have struggled for years to afford basic necessities such as food.
Meanwhile, the Department of Veterans Affairs released its 2025 Veterans Pension income limits. The new limits change veterans’ individual rates. The actual amount paid depends on a veteran’s income; the pension payment makes up the difference.
Veterans of wartime service who are 65 or older and on a limited income may qualify for a veteran’s pension without being disabled. Wartime veterans may also qualify who have a limited income and can no longer work.
For example, for a veteran with no dependents, the 2025 VA pension income limit (effective Dec. 1, 2024) is $16,956. With a spouse or child, it’s $22,216.
Read More: 2025 Veterans Pension Rates and Eligibility
Another important update for 2025 is the Basic Allowance for Housing, or BAH, which will increase by 5.4% for the second year in a row.
The Defense Department calculates BAH rates based on a uniformed service member’s geographic duty location, paygrade and dependency status, along with housing costs in each local market. Each year, the department releases new BAH tables in mid-December for rates effective Jan. 1.
There is also a special type of Basic Allowance for Housing known as BAH Transit, BAH Type II, BAH Non-Locality or BAH Reserve, depending on what branch you are in and your status. You can find those updates for 2025 here.
Read More: Here Are Your BAH Rates for 2025
Additionally, the VA has released its new rates for the Survivors Pension, also known as the “death pension,” a tax-free benefit paid to eligible dependents of deceased wartime veterans. For those eligible, the VA pays the difference between your countable income and the yearly income limit that describes your situation.
Read More: 2025 Survivors Pension Rates
Finally, the 2025 dates have been released for retired military paydays. You can use this chart to mark your calendars.
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Amanda Miller is an editor and writer for Military.com specializing in coverage of military and veteran pay and benefits. She became a journalist in the 1990s, began covering the military in 2007 for Military Times, and has since contributed to a number of military-oriented publications including Military Officer Magazine, The War Horse, and Air & Space Forces Magazine. Read Full Bio
Rebecca Kheel specializes in covering Congress for Military.com, holding lawmakers accountable for how their decisions affect military personnel and veterans. Her coverage includes military quality-of-life issues in the annual defense policy bill, debates over veterans’ health care and benefits, and how political gridlock affects the force. Read Full Bio
Tiffini is a Military.com writer and editor who oversees the website’s email newsletters, seasonality pages, holiday and evergreen content, and news alerts. A seasoned journalist with extensive experience in reporting, writing, audience development, content strategy and news analytics, Tiffini holds a master’s degree from the University of Florida and is a former journalism professor and award-winning college newspaper advisor. She lives in Florida with her fiance, an Army veteran who served in Iraq. Read Full Bio
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Your Military Pay Raise for 2025, Plus Veterans Pension and BAH Updates – Military.com
