Active duty service members will see a 4.5% pay increase starting January 1, 2026, the Department of Defense confirmed today.

What This Means for Your Pay
An E-5 with four years of service will see their base pay increase from around $3,400 to approximately $3,550 monthly. Officers will see proportional increases across all pay grades.
The increase also affects BAH calculations for 2026, though specific rates vary by location.
For Transitioning Service Members
If you are planning to separate in 2026, factor this increase into your civilian salary requirements. Many veterans underestimate their total military compensation when negotiating civilian salaries.
Remember to calculate benefits, healthcare, and BAH when comparing military pay to civilian offers.
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