'Restore Real Value': House Panel Wants to Give Junior Enlisted Troops 15% Pay Raise

Vambram

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The military's most junior service members should get a 15% hike in their base pay in order to "restore real value" to military pay, a key bipartisan congressional panel formed to improve the lives of troops said Thursday.

The recommendation on boosting paychecks is part of the final report from the House Armed Services Committee's military quality-of-life panel, a group of Republican and Democratic lawmakers that spent months analyzing service members' pay, housing, health care, child care and spouse employment.

The panel hopes to use the report to push improvements for troops this year. It also calls for a raft of other changes: increased allowances for housing and food insecurity; fully funded barracks renovations; exploring barracks privatization; offering more competitive pay for child care workers; evaluating health care access standards; and making permanent a pilot program for fellowships for military spouses, among other recommendations.
 

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The military's most junior service members should get a 15% hike in their base pay in order to "restore real value" to military pay, a key bipartisan congressional panel formed to improve the lives of troops said Thursday.

The recommendation on boosting paychecks is part of the final report from the House Armed Services Committee's military quality-of-life panel, a group of Republican and Democratic lawmakers that spent months analyzing service members' pay, housing, health care, child care and spouse employment.

The panel hopes to use the report to push improvements for troops this year. It also calls for a raft of other changes: increased allowances for housing and food insecurity; fully funded barracks renovations; exploring barracks privatization; offering more competitive pay for child care workers; evaluating health care access standards; and making permanent a pilot program for fellowships for military spouses, among other recommendations.
Hopefully this new pay raise is indexed to the inflation rate.


Here is a summary of the article:

The article by Rebecca Kheel, published on April 11, 2024, discusses the recommendations made by a bipartisan congressional panel aimed at improving the lives of military personnel. The House Armed Services Committee's military quality-of-life panel, led by Don Bacon (R-Neb.) and Chrissy Houlahan (D-Pa.), analyzed various aspects of military life, including pay, housing, healthcare, child care, and spouse employment.

The panel's most notable recommendation is a 15% increase in base pay for the military's most junior service members (E-1 through E-4) to restore real value. The panel expressed concern that basic pay has not kept pace with inflation since 2020 and that junior enlisted members have seen a decline in real wages compared to higher ranks.

Additionally, the panel called for increased housing allowances (BAH) from 95% of housing costs to 100%, updating the Pentagon's method for calculating BAH, and expanding eligibility for the Basic Needs Allowance from 150% of federal poverty guidelines to 200%.

The panel identified housing affordability as a major concern and noted that military services are only funding facilities sustainment at about 80% of what's needed. The panel recommended Congress mandate the services to track and report the total funding required for facilities maintenance, with a particular focus on barracks. There was also interest in exploring privatized barracks throughout the panel's work.

The panel made several recommendations to improve child care access, focusing on alleviating staffing shortages by ensuring employees receive competitive wages. The Defense Health Agency was recommended to evaluate access standards for urgent referrals for specialty behavioral health care, expand access to certain specialties without a referral, and survey specialties with shortages of providers.

The panel also looked at ways to alleviate the high unemployment rate for military spouses. Recommendations include making permanent a pilot program that provides 12-week paid fellowships to spouses in various industries, giving the Pentagon permanent authority to negotiate agreements for military spouses to use their professional licenses across state lines, and requiring states to comply with a federal law recognizing most professional licenses when service members and their families move for a permanent change of station.

At least some of these recommendations are expected to be included in the Armed Services Committee's annual defense policy bill, though budget constraints may impact their implementation.
 
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Gene2memE

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Just for giggles, I graphed out the growth of US armed forces basic pay for enlisted personnel, US CPI and the US federal minimum wage from 1980 to 2024 (2022 in the case of inflation). Based on cumulative % change year on year.

Picture1.png


US armed forces basic pay has gone up 166.8%.

US CPI (inflation) has gone up 142.95%.

US federal minimum wage has gone up 96.67%.


Armed forces pay was essentially tied to inflation until the end of the 1990s, and has run ahead of inflation since then. The 2024 increase will be 5.2% - that's the largest increase since 2002. That follows on from a 4.6% increase in 2023. A 4.5% increase is also budgeted for 2025.
 
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SimplyMe

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Just for giggles, I graphed out the growth of US armed forces basic pay for enlisted personnel, US CPI and the US federal minimum wage from 1980 to 2024 (2022 in the case of inflation). Based on cumulative % change year on year.

View attachment 345931

US armed forces basic pay has gone up 166.8%.

US CPI (inflation) has gone up 142.95%.

US federal minimum wage has gone up 96.67%.


Armed forces pay was essentially tied to inflation until the end of the 1990s, and has run ahead of inflation since then. The 2024 increase will be 5.2% - that's the largest increase since 2002. That follows on from a 4.6% increase in 2023. A 4.5% increase is also budgeted for 2025.

Having joined that Air Force in the early 80s, it is worth pointing out that was a time period of some big pay raises under Reagan (as you can see in the graph). At the end of the 70s, the military was drastically underpaid, so one of the things Reagan campaigned on and implemented was huge increases in military pay. The military got a 7% pay raise in 1980, 11.7% in 1981, and 14.3% in 1982; so those large increases (which you can see in your graph) somewhat skew the data, by starting in 1980.
 
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Gene2memE

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Having joined that Air Force in the early 80s, it is worth pointing out that was a time period of some big pay raises under Reagan (as you can see in the graph). At the end of the 70s, the military was drastically underpaid, so one of the things Reagan campaigned on and implemented was huge increases in military pay. The military got a 7% pay raise in 1980, 11.7% in 1981, and 14.3% in 1982; so those large increases (which you can see in your graph) somewhat skew the data, by starting in 1980.

Changing the starting period doesn't really change the end result much. Here's 1963-2024:

Picture2.png


Federal min wage growth: 201%
CPI growth: 242%
Enlisted basic pay growth: 304%

Makes things look a little better for the Federal minimum wage, mostly because of the two big jumps in the mid 1960s and mid 1970s.
Also makes the growth of military basic pay comparatively larger than CPI, because of big pay bumps in the early 1960s.
 
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Vambram

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Changing the starting period doesn't really change the end result much. Here's 1963-2024:

View attachment 345938

Federal min wage growth: 201%
CPI growth: 242%
Enlisted basic pay growth: 304%

Makes things look a little better for the Federal minimum wage, mostly because of the two big jumps in the mid 1960s and mid 1970s.
Also makes the growth of military basic pay comparatively larger than CPI, because of big pay bumps in the early 1960s.
With your chart, does it track the enlisted ranks only that are E1 through E4? After all, that was what the article in the OP was focused upon concerning that the junior enlisted in the military and their relatively low amount of pay.
 
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SimplyMe

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Changing the starting period doesn't really change the end result much. Here's 1963-2024:

View attachment 345938

Federal min wage growth: 201%
CPI growth: 242%
Enlisted basic pay growth: 304%

Makes things look a little better for the Federal minimum wage, mostly because of the two big jumps in the mid 1960s and mid 1970s.
Also makes the growth of military basic pay comparatively larger than CPI, because of big pay bumps in the early 1960s.

Why pick another random starting year? Why not do it from 1983, when pay was caught up to what it should be, rather than going back to the 60s? It is particularly true because the 60s had a draft -- and draftees tended to be poorly paid for their time in service -- so it would make sense pay had to drastically increase, at least for the lowest enlisted ranks, when we switched to the all-volunteer military.
 
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Desk trauma

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Increasing pay for the lower ranks will reduce drive for promotion. These are not ment to be life long positions. Does the military not issue boots with straps?
 
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durangodawood

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Increasing pay for the lower ranks will reduce drive for promotion. These are not ment to be life long positions. Does the military not issue boots with straps?
Military seems the opposite of "bootsraps". The promotion path is well known and well trodden. Seems that way from the outside, anyway.
 
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Military seems the opposite of "bootsraps". The promotion path is well known and well trodden. Seems that way from the outside, anyway.
Clearly counter productive to increase their pay then, it would be encouragement to avoid advancement and would be spent on high interest car loans and tattoos.
 
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Vambram

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Clearly counter productive to increase their pay then, it would be encouragement to avoid advancement and would be spent on high interest car loans and tattoos.
As someone who is still in the military after 26 years of service, you have raised a couple of valid points. Single soldiers without families are notorious for wasting their money, especially if they live in military barracks. However, junior enlisted (E1 to E4) who are married and/or are supporting families do not earn enough money with their basic pay to do so comfortably. It is good that the military does pay out housing allowance as well as pay out food subsistence allowance for soldiers with dependents. However, I still believe that E1 to E4 ranks ought to have a higher base pay than what they currently have been getting.
 
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Desk trauma

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However, junior enlisted (E1 to E4) who are married and/or are supporting families do not earn enough money with their basic pay to do so comfortably.
Adding comfort would encourage them to remain in their position and not seek advancement. Issue boot straps, these are not life time positions.
 
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Belk

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Adding comfort would encourage them to remain in their position and not seek advancement. Issue boot straps, these are not life time positions.
Not to mention the inflation this would cause. If we give the lower ranks more money it wont be long before you won't be able buy beer at the PX for a decent price.
 
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