The 2027 military pay raise will take effect on January 1, but Congress has not settled the number. The House and Senate versions of the annual defense bill, the National Defense Authorization Act, take two different approaches, and the gap matters most to junior enlisted members.
The two versions
The House version follows the White House budget request with a tiered raise, often called “7-6-5”:
- 7% for E-1 through E-5
- 6% for E-6 through O-3
- 5% for O-4 and above
The Senate version gives everyone a flat 3.6%. That figure is what the standard formula in federal law produces. It is based on the growth in private-sector wages, measured by the Employment Cost Index from the third quarter of 2025 to the third quarter of 2026.
The two chambers now have to agree on one bill. In recent years the final NDAA has usually passed in December. If Congress does not set a number at all, the 3.6% formula raise takes effect automatically.
What each version pays
Monthly basic pay in 2026 and under each 2027 version, before the official table rounds the figures:
| Rank and years | 2026 | Senate, 3.6% | House, tiered | Yearly difference |
|---|---|---|---|---|
| E-1, under 2 | $2,407.20 | $2,493.86 | $2,575.70 (7%) | $982 |
| E-3, over 2 | $3,015.00 | $3,123.54 | $3,226.05 (7%) | $1,230 |
| E-4, over 4 | $3,658.50 | $3,790.21 | $3,914.60 (7%) | $1,493 |
| E-5, over 6 | $4,110.00 | $4,257.96 | $4,397.70 (7%) | $1,677 |
| E-6, over 8 | $4,612.80 | $4,778.86 | $4,889.57 (6%) | $1,328 |
| E-7, over 12 | $5,591.70 | $5,793.00 | $5,927.20 (6%) | $1,610 |
| O-1, under 2 | $4,150.20 | $4,299.61 | $4,399.21 (6%) | $1,195 |
| O-3, over 6 | $7,737.00 | $8,015.53 | $8,201.22 (6%) | $2,228 |
| O-4, over 12 | $9,888.30 | $10,244.28 | $10,382.72 (5%) | $1,661 |
| O-5, over 20 | $12,032.70 | $12,465.88 | $12,634.34 (5%) | $2,021 |
For an E-5 with over 6 years, the House version is worth about $140 a month more than the Senate version. Even the smaller Senate raise adds about $148 a month to that E-5’s basic pay.
Why a tiered raise?
Supporters say the largest raises should go to the most junior members, who earn the least and feel rising costs most sharply. Recruiting has also been a concern. A tiered raise also continues the focus on junior enlisted pay that began with the extra 10% raise for E-1 to E-4 in April 2025.
Critics point to the cost, and to the risk that grades bunch together. A 7% raise for E-5 against 6% for E-6 narrows the pay gap that rewards promotion.
What it means for allowances
The basic pay raise does not change BAH or BAS directly. BAH for 2027 is set separately from local rent data and usually published in mid-December. BAS rises with food costs. Drill pay for the Guard and Reserve rises by the same percentage as basic pay, because it is calculated from the same table.
When you will see it
Whatever the final percentage, the new rate applies from January 1, 2027. The pay for January 1 arrives on December 31, 2026, because New Year’s Day is a holiday, but it covers the second half of December at 2026 rates. The first paycheck at the new rate arrives January 15, 2027.
We will update every pay chart and the total pay calculator on this site the day the final table is published. Until then, the calculator’s what-if table shows your pay at a 3.6% and a 5% raise.