Servicemembers are in line for a 3.8% pay hike as part of the annual must-pass defense policy bill, but a figure released this month by the Bureau of Labor Statistics (BLS) points to a smaller boost in 2027.

The Employment Cost Index (ECI) for wages and salaries of private-industry workers rose 3.6% for the 12 months ending in September 2025, according to BLS data. That figure will be used to inform the military basic pay raise for 2027.

It would be the smallest raise since a 2.7% boost in 2022 and would continue a downward trend from the 5.2% hike in 2024. The 4.5% base pay raise in 2025 was accompanied by a MOAA-supported 10% target increase for junior enlisted members.

Keeping Up With Costs

The percentages for the ECI and the pay raise have been the same for about a decade. Despite this trend (and associated statute), either Congress or the President can propose a pay raise that does not mirror the ECI figure; military pay fell below the ECI number for three years (2014-16), trailing ECI in 2016 by a full percentage point (2.3% ECI benchmark, 1.3% raise).

[RELATED: MOAA-Backed House Bill Would Improve Access to Health Care for Military Families]

Ensuring service-earned compensation retains its value continues to be a driving force for MOAA’s advocacy efforts. Pay is no exception: MOAA supports a raise at or above the ECI figure, with anything less posing a risk to overall readiness. Even as recruiting issues subside, a force that does not offer competitive compensation will lose key talent to the civilian sector.

Why above ECI? Raising military pay would help offset the “pay gap” created during the three years the raise lagged ECI benchmarks.

Supporting Those Who Serve

A fair pay increase is just one goal for MOAA’s ongoing work on behalf of those in uniform. Other top priorities include:

• The restoration of Basic Allowance for Housing (BAH) to cover 100% of housing costs, a welcome benefit to the bottom line of the majority of servicemembers who live off base. After cuts to the benefit in the 2010s, these military families are expected to pay 5% of these costs out of pocket. Many end up paying a higher percentage, especially in competitive rental markets.
  
  
• Improved access to care in the military health system (MHS), to include preserving medical staffing levels and creating a digital platform to report access issues and help servicemembers and their families navigate the system.
  
  
• Spouse and family priorities, such as continued work to support military spouse employment and to improve child care assistance and availability.

For more on MOAA’s advocacy work, and to lend your voice as a grassroots supporter of the mission, visit MOAA’s Legislative Action Center.