2026 pay raise military​: What Service Members and Retirees Need to Know

Most civilian federal employees are expected to receive a 1% pay raise in 2026, according to a pay plan the White House quietly submitted to Congress. But there’s a major exceptio federal law enforcement officers and military retirees will see higher adjustments.

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For the general civilian workforce, this marks the smallest raise since 2021, when President Trump also authorized a 1% increase. By law, presidents must submit an “alternative pay plan” to Congress by September 1 each year to prevent larger automatic raises required under the Federal Employee Pay Comparability Act (FEPCA) from taking effect.

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Law Enforcement and Military Retirees to See Bigger Raises

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Unlike the 1% adjustment for most civilian workers, certain law enforcement employees will receive

a 3.8% raise in 2026, matching the increase for active-duty military service members. This also directly impacts retirees, since military retirement pay increases are tied to active-duty pay raises. That means the military retirement pay increase 2026 is projected to be 3.8%, which is the same rate as the active-duty military raise.

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In his message to Congress, the president explained that the larger adjustment is designed to boost recruitment and retention in critical law enforcement roles and to ensure that “our great Federal law enforcement officers are treated fairly.”

The Office of Personnel Management (OPM) will now consult with agencies to determine which categories of law enforcement employees qualify for the higher increase.

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Recent Trends in Pay Raises

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The last time civilian federal workers received an increase of 1% or less (prior to 2021) was in 2015, during a stretch of years marked by minimal or frozen raises. In contrast, recent adjustments have been much larger: 2.7% in 2022, 4.6% in 2023, 5.2% in 2024, and 2% in 2025.

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For retirees, the military retiree pay raise 2026 will once again track the active-duty raise, ensuring retired service members receive a 3.8% increase. This follows the pattern of previous years, where cost-of-living adjustments (COLA) and pay raise alignments have helped military retirees maintain parity with active-duty compensation trends.

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Why Not the Full FEPCA Formula?

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Under FEPCA, federal employees on the General Schedule are supposed to receive raises in line with private sector wage growth, as measured by the Employment Cost Index. However, presidents from both parties have long departed from that formula, choosing instead to set smaller raises through alternative pay plans.

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If the formula had been applied in 2026, employees would have received a 3.3% across-the-board raise plus an average 18.88% increase in locality pay—a combined raise of more than 22%.

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The president defended the lower increase, citing budgetary concerns:

“Federal agency budgets cannot sustain such irresponsible increases,” he wrote. “Pay must be tied to merit and skill, while ensuring an efficient, high-caliber workforce that aligns with our broader goals of streamlining government and reducing spending.”

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Historical Context of Military Pay Raises

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Military pay raises are determined under the Employment Cost Index (ECI), which tracks private-sector wage growth. By law, military pay raises are supposed to match ECI, although Congress has the authority to adjust them higher or lower.

• 2023: 4.6% raise (highest in 20 years)
  
  
• 2024: 5.2% raise (largest since 1981)
  
  
• 2025: 4.5% raise
  
  
• 2026: Proposed 4.5% raise
  
  

This steady growth highlights Congress’s recognition of the financial challenges military families face, especially with housing, childcare, and healthcare costs rising nationwide.

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How Will the Raise Impact Retirement and Pensions?

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For active-duty service members, pay raises aren’t just about take-home pay they directly affect future retirement benefits. Military pensions are calculated based on the highest 36 months of base pay. A 4.5% increase in 2026 means that retirees will lock in higher pension amounts for life.

Example:

• An E-7 retiring in 2026 after 20 years could see an additional $1,200–$1,500 annually in pension income.
  
  
• For officers, the pension boost could reach $2,000–$3,000 annually, depending on rank and years of service.
  
  

For those under the Blended Retirement System (BRS), the raise also means more money flowing into Thrift Savings Plan (TSP) contributions, since the government matches a percentage of base pay.

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How This Impacts TSP Contributions

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With higher base pay, service members contributing to their TSP accounts will see larger deposits, especially when including government matching contributions under the BRS. Over a 20-year career, even small increases can compound significantly.

For example, a 4.5% raise could translate into thousands more in retirement savings over time, particularly for those contributing the maximum percentage.

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Budgeting for Military Families in 2026

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While the pay raise is welcome, families should view it as part of a broader financial plan. Rising costs for housing, utilities, and groceries may absorb part of the increase. Smart budgeting including tracking expenses, maximising TSP contributions, and maintaining an emergency fund remains essential.

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The 2026 military pay raise is more than just a paycheck boost it’s an opportunity to strengthen your long-term financial security. Whether you’re active duty, a retiree, or planning for transition, making the most of your raise can mean thousands more in lifetime retirement benefits.

Don’t leave money on the table connect with a trusted financial advisor today to maximize your pension, TSP contributions, and family budget. Book your free consultation now and take control of your financial future.

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2026 Active Duty Military Pay Charts

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The following pay charts reflect the proposed 2026 military pay raise of 3.8%. Monthly basic pay figures are rounded to the nearest U.S. dollar and apply to the active components of the Army, Navy, Marine Corps, Air Force, Space Force, and Coast Guard. Pay scales are organized for Enlisted Members, Warrant Officers, and Commissioned Officers.

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2026 Enlisted Basic Pay Chart

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Less than 2 to Over 6 Years of Service

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Over 8 to Over 16 Years of Service

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Over 18 to Over 26 Years of Service

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Over 30 Years of Service

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2026 Officer Basic Pay Chart

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Under 2 to Over 6 Years of Service

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Commissioned Officers with Prior Enlisted or Warrant Service

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• O-3E: $7,383 → $7,737
• O-2E: $6,484 → $6,618
• O-1E: $5,222 → $5,577

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2025 Warrant Officer Pay Chart (<2 – Over 6 Years)

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• W-4: $5,720 (<2 years) → $6,802 (over 6 years)
• W-3: $5,223 (<2 years) → $5,971 (over 6 years)
• W-2: $4,622 (<2 years) → $5,586 (over 6 years)
• W-1: $4,057 (<2 years) → $5,152 (over 6 years)

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Over 8 to Over 16 Years of Service

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Commissioned Officers with Prior Enlisted/Warrant Service

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• O-3E: $8,125 → $9,337
  
  
• O-2E: $6,828 → $7,664
  
  
• O-1E: $5,783 → $6,484
  
  

Warrant Officers (8–16 years)

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• W-4: $7,098 → $8,620
  
  
• W-3: $6,431 → $7,666
  
  
• W-2: $6,052 → $7,005
  
  W-1: $5,585 → $6,565

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Over 18 to Over 26 Years of Service

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Warrant Officers (18–26 years)

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• W-5: $10,170 → $11,495
  
  
• W-4: $8,928 → $10,445
  
  
• W-3: $8,150 → $9,162
  
  
• W-2: $7,201 → $7,714
  
  W-1: $6,766 → $7,010

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Over 30 Years of Service

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Warrant Officers (30+ years)

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• W-5: $12,071 → $13,308
  
  W-4: $10,654 → — (retirement)

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Notes

• Note 1: Military basic pay for O-7 through O-10 is capped at $18,491.70 under Level II of the Executive Schedule.
  
  
• Note 2: Basic pay for O-6 and below is limited to $15,000.00 (Level V of the Executive Schedule). Final figures will be confirmed upon official release.
  
  

Key:

• E = Enlisted
  
  
• W = Warrant Officer
  
  
• O = Commissioned Officer
  
  

Effective Date: January 1, 2026 (if approved).

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What’s Missing Beyond Base Pay? Key NDAA Provisions That Affect Military Families

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The 2026 NDAA goes far beyond just base pay. Here are the other major quality-of-life and financial updates included:

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Family Separation Allowance

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The NDAA includes an increase in the Family Separation Allowance (FSA) for service members deployed away from their dependents. This is designed to better reflect the real costs families face when a spouse or parent is separated for long deployments.

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Housing Allowances (BAH & BAS)

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Another important provision involves Basic Allowance for Housing (BAH) calculations. Lawmakers are pushing to:

• Prevent BAH from being counted as income when determining eligibility for benefits.
  
  
• Expand oversight to ensure rates accurately reflect rising housing costs, especially in high-demand military communities.
  
  

Child Care Reforms

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Military families have long struggled with childcare access and affordability. The 2026 NDAA proposes:

• Extending pilot programs that expand on-base childcare capacity.
  
  
• Offering subsidies for families who must use civilian providers.
  
  
• Simplifying waitlists to reduce delays for military parents.
  
  

Food and Nutrition Access

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The bill also focuses on food security. Service members living in unaccompanied housing will gain better access to food support programs, ensuring no one in uniform struggles with basic needs.

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Healthcare and Mental Health Provisions

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The NDAA expands access to:

• Mental health services, especially for younger troops and those returning from deployments.
  
  
• OB-GYN care, ensuring women in uniform have full access to reproductive and maternal healthcare.
  
  
• TRICARE updates, making it easier to access providers in underserved areas.
  
  

House vs. Senate NDAA Versions

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While the House proposed a $848 billion defence budget, the Senate authorised $878.7 billion. Both chambers support the 4.5% pay raise, but differences remain around acquisition reforms and program funding. A final compromise bill will set the exact scope of benefits.

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Acquisition Reform and Readiness

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Beyond personnel issues, the 2026 NDAA also tackles military readiness. This includes reforms to how the Pentagon buys equipment, accelerates technology adoption, and balances priorities between near-peer competition and global deployments.

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Conclusion: What Military Families Should Expect in 2026

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The 2026 military pay raise is more than just a bump in base salary it’s part of a larger effort to strengthen military compensation, retirement security, and family quality of life.

• Active-duty troops will see higher paychecks and boosted retirement benefits.
  
  
• Retirees will enjoy larger lifelong pensions.

Families will gain from expanded allowances, childcare access, healthcare reforms, and housing protections.

As Congress finalises the NDAA, service members should prepare not just for higher income but also for new support programs that make military life more sustainable.

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FAQ

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Will military pay go up in 2026?

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Yes. Military basic pay is set to increase by 3.8% in 2026, based on the Employment Cost Index (ECI) and confirmed in the Fiscal Year 2026 National Defense Authorization Act (NDAA).

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What is the pay raise for 2026?

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The proposed military pay raise for 2026 is 3.8%, taking effect on January 1, 2026, if fully approved by Congress and signed into law.

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Is BAH going up in 2026?

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Yes. The 2026 NDAA includes adjustments to the Basic Allowance for Housing (BAH). While the exact percentage varies by location and rank, service members can expect BAH to increase to reflect local housing market changes.

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What is the military COLA for 2026?

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The Cost-of-Living Adjustment (COLA) for 2026 has not yet been finalized. COLA rates are typically announced later in the year and are based on inflation data from the Consumer Price Index (CPI).

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