Understanding Trump's 2019 NDAA Military Pay Increases
Yesterday, standing on a podium between new Apache and Black Hawk helicopters and soldiers from the 10th Mountain Division at Fort Drum, President Donald Trump signed the 2019 National Defense Authorization Act. This marks the earliest in the year that this annual bill, which was first passed in 1961, has been signed since 1978.
The newest iteration of the NDAA, which lays the groundwork for how military spending will be arranged and budgeted for the upcoming fiscal year, allocates $717 billion to be spent on a variety of military improvements. President Trump touted a number of these advancements to an adoring crowd, citing how the bill will allow for the addition of 15,600 new armed forces members, as well as the replacement of “aging” equipment. In fact, the bill calls for 77 new F-35 Lightning II stealth fighters, 13 new battleships of varying models, and a broad collection of planes, helicopters, and other military vehicles and pieces of equipment.
The NDAA also authorizes over $6 billion for overseas military actions in Afghanistan and Iraq. However, among these countless advancements and specific allocations of funds, perhaps the most visible to the general public is the allotted 2.6 percent increase in the salaries of our military members. This provision of the 2019 NDAA brings up an interesting question that many members of the community are still confused about – how exactly does military pay work?
Many citizens may be wondering if this salary increase is warranted amongst the debates over minimum wages and poverty currently swirling around the nation. To understand this, however, one must first grasp exactly how our service men and women are compensated -- beginning with the fact that salary increases are set by a statutory formula based on the previous year's Employment Cost Index (ECI). This ensures that military salaries keep pace with those of the private sector. So that's the legal reality, one that must be dealt with by anyone seeking to argue current military compensation is too high.
So how do current military salaries compare to the private sector right now? It's a complex question.
According to the U.S. Army, base pay for an E1 Private with under two years of experience is a salary of $19,659.60 based on the 2018 pay scale. Compensation increases steadily as soldiers rise through the ranks and accrue more years on the job, with the salary for a Staff Sergeant with six years experience sitting at just over $38,000 on the 2018 pay scales. As expected, officers such as Lieutenants and Majors make more than active duty soldiers, with the base pay again increasing with rank and experience
However, these numbers are not even close to the whole story. These numbers do not include “allowances” for things like housing and food, which change based on how many dependents the soldier or officer is supporting. In addition, service members can earn significant bonuses for different skills and responsibilities, with extra money for everything from culinary experience to fluency in multiple languages. Finally, military members in all branches are eligible for health benefits both during and after their tenure (although VA medical care and benefits have fallen under significant scrutiny).
Once the basic structure of military pay is understood, the next level is to compare that to the total compensation (and additional costs) of similar jobs in the civilian sector.
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