Updated December 8, 2014

Military pay limited to a 1% increase, BAH will be reduced 1% and there will be a $3 increase on most prescription co-pays for 2015. These provisions are a part of the 2015 National Defense Authorization Act (NDAA) which The House and Senate Armed Services committee just agreed to.

This deal is in opposition to what most military and veterans group had lobbied Congress to do but in line with what the Pentagon and White House requested. President Barack Obama has also said he would pass a 1% pay increase. Based on this deal it is not expected that any significant changes will be made before Congress and the President pass and sign the 2015 NDAA.

Service members annual pay increase is determined by the Bureau of Labor Statistics’ Employment Cost Index and growth in private sector wages. However, by law Title 37, Chapter 19, Section 1009) the president can set an alternate pay raise.

See the Proposed Military Pay Charts.

NDAA Summary

1% military pay increase. Generally, annual increase are tied to civilian wage growth which is 1.8% this year

Basic Allowance for Housing (BAH) will be reduced by 1%. Veterans receiving the Post-9/11 GI Bill® will be exempt.

Increased Tricare Pharmacy Co-Pays – Most Prescription co-pays will be increased by $3. Mail-order generic drugs are not increased

The A-10 will not be retired

$521 billion defense bill budget package

$64 billion more in overseas contingency funds

$5 billion for the current fight in Iraq and Syria

The 1% retirement pay reduction (COLA-minus one plan) for future service members was delayed at least one more year, January 1, 2016.

Effective Date Once Signed into Law

January 1st, 2015

Next Steps