Enlisted Base Pay for FY 2005

The FY 2005 Military Authorization Act, and FY 2005 Military Appropriations Act, are now law. The last bill, HR 400, the FY 2005 Military Authorization Act was signed into law by President Bush on October 28, 2004. The act includes an across-the-board 3.5 percent base pay raise for all military personnel.

In addition to the 3.5 percent raise in basic pay, both committees also approved raising BAH (Basic Allowance for Housing) to the point where it will pay 100 percent of the average housing costs. This concludes DOD's five-year plan to completely eliminate out-of-pocket housing expenses by FY 2005 (average out-of-pocket housing expenses in FY 2004 is 3.5 percent).

This is the first time in five years that Congress did not "target" the pay raise by giving some ranks a higher raise percentage than other ranks. In FY 2004, the average pay raise was 4.1 percent, but some members received as little as 3.7 percent, while others received as much as 6.25 percent. In 2005, all members will receive a base pay raise of 3.5 percent.

This is the sixth consecutive year that Congress will approve a pay raise larger than the level of private sector pay raises. Once implemented, this raise is expected to decrease the "pay gap" from 5.5 percent to 5.1 percent.

Active duty military members are paid twice per month, on the 1st and the 15th of each month. If "payday" falls on a weekend or holiday, they are paid on the duty day preceeding the weekend or holiday. For example, if the 15th of the month falls on Sunday, the member would be paid on Friday. Because the below chart shows MONTHLY pay, the member would receive 1/2 of this on each payday.

FY 2005 Military base pay is based upon grade (rank) and years of service: