Obama orders 1.3 percent military pay raise next year

Posted 2015-08-31 13:47 by Grunt Report

President Obama informed Congress Friday that he’ll follow through with plans to cap military pay raises at 1.3 percent next year, as part of an effort to keep down mounting defense spending.

In a letter to House and Senate leaders, Obama called the move unfortunate but necessary.

“As our country continues to recover from serious economic conditions affecting the general welfare … we must maintain efforts to keep our nation on a sustainable fiscal course,” he wrote. “This effort requires tough choices, especially in light of budget constraints.”

The president noted that administration officials do not believe the lower-than-inflation pay raise will hurt the military’s ability to recruit and retain servicemembers.

If it stands, the 1.3 percent raise will be the third consecutive year of increases that fall short of estimated private-sector wage growth, and widen the gap between military and civilian salaries to around 5 percent by some estimates.

Congress has not yet weighed in on whether or not to override the president’s pay plan. House lawmakers have voted for budget plans that would provide a 2.3 percent pay raise for troops — keeping in line with private-sector hikes — but Senate proposals so far have backed the lower 1.3 percent plan.

For an E-4 with three years of service, the difference between the two potential pay raises would total about $268 a year. For an O-4 with 12 years, it would be about $838.