Obama Says 1% Raise for 2014

In a letter sent to Congress on Friday, President Obama recommends a 1.0% raise for military servicemembers in 2014.  This is not the final step for this to become law.  Congress has the ability to override this decision, and the House has already passed a 1.8% increase as part of it its Defense Appropriations bill.  We will still have to wait and see what the actual pay increase will be, but at least we now know the President’s intentions.

1.8% is the amount calculated under the Federal Pay Comparability Act to keep pace with private-sector wages.  However, with a tight federal budget and other federal employees receiving no pay increase for the last three years, some people are pushing for the military to receive a smaller increase.  The 1.0% increase is the same as included in the President’s proposed 2014 budget.

With overall annual inflation of 2% as of July 2013, a 1% increase in pay will mean a decrease in the real value of military pay.  However, in today’s economy, having a job with a steady paycheck is a good thing.  I’m going to try to look at the positive side of the situation, be thankful that we’re likely to get any raise at all, and be glad for the relative security of a military paycheck coming into my house.

About the Author

Kate Horrell
Kate Horrell is a military financial coach, mom of four teens, and Navy spouse. She has a background in taxes and mortgage banking, and a trove of experience helping other military families with their money. Follow her on twitter @realKateHorrell.
  • SGMBob

    But — no one better damn well touch his vacation money! One percent! What a load of crap!

  • Stewl

    Meanwhile, all kinds of minimum wage workers are getting large (percentage wise) increases in their pay.

  • elchickcano13

    Just another example of his on-going efforts to weaken the USA. It does bolster comments that we are heading towards such a weaken global power and we in fact will be a third world country instaed of a world leader.

    • RET E 7

      I remember when I made $78.00 a month so the pay today is a long way from the days when we made less than 50 cents an hour are less and was below the minimum wage standard. so 1% is better than no %!!

      • Chris(USN)

        when you made 78$ a month was gas 4$ a gallon? how about milk/eggs, any other groceries? 1% doesnt even keep up our yearly inflation.

  • jay

    Bo has wasted billions on green jobs and shovel ready jobs, but he can’t give our military a decent raise. Thanks Bobo.


    Inflation at only 2%?? Who are they kidding? Don’t they shop for food, buy gas, payfor utilities and other necessities? What a joke. This is like the unemployment number. Another manipulated set of figures just like the inflation rate. It doesn’t take everything into consideration. Any statistic or number coming from the government is what they want it to be.

  • raw

    Meanwhile in march Obama issued an executive order giving minor raises of about .5% to Congress and more importantly 2.8% to Joe Bidden. This after a very short freeze on federal wages. Obama may claim he supports our military and vets but his actions indicate otherwise.

  • Joseph Senko

    I remember when I was making $ 90.00 a month (a little younger than Ret E7) as an E-2. A 1% pay raise is an insult. But as stated before it is better than nothing. I remember when I received a 1%, There was little difference.

  • Steve

    Until Our Government stops rewarding the politicians with huge bonuses, and pay raises they Military will NEVER be properly rewarded. This goers for ALL political Parties, we can see that the percentages for any raise in military differs every little for whoever is in Our White House??? My feeling s are NO ONE, in Our Federal Government should receive any raises or bonuses that exceeds what Our Military Personnel receive at any one time……..

  • Andrew