Last updated October 19, 2026. We will update this article as decisions land.
Wondering what the 2027 military pay raise will be? Here's the honest answer: nobody knows yet. Two numbers are on the table. One is a tiered plan called 7-6-5. The other is a flat 3.6%. For a mid-career service member, the gap could top $1,000 a year. Let's break down where things stand and how to plan while you wait.
What Is Final and What Is Not
Final:
- By law, the default raise for January 2027 is 3.6%. That figure comes from the Employment Cost Index (ECI).
- The 2027 COLA for military retirees is 3.6%. It was announced October 14, 2026.
Not final:
- The 2027 basic pay raise itself. As of October 19, 2026, it is not final.
- The 2027 pay charts. They post only after the raise is settled.
- The 2027 BAH rates. These are normally announced in mid-December.
Background: How the Military Pay Raise Works
Each January, military basic pay rises by the change in the ECI. That's a government measure of how fast wages and benefits are growing. The formula is the default. It applies unless the President or Congress sets a different number.
Here's the simple version:
- The government measures wage growth with the ECI.
- That number becomes the default raise.
- The President or Congress can replace it with a different number.
That's why there are two stories this year. The formula says 3.6%. The President's budget asked for something else.
Here's who proposed what:
- The President's FY2027 budget request: a tiered "7-6-5" raise starting January 1, 2027. The August 26, 2026 alternative pay plan letter restated that proposal.
- The House: passed its FY2027 National Defense Authorization Act (NDAA), H.R. 8800, on July 22, 2026, by a vote of 216 to 212. It includes the 7-6-5 raise.
- The Senate Armed Services Committee: its version of the NDAA gives a flat 3.6%, matching the ECI formula.
Want to see how last year went? Read our 2026 military pay raise (3.8%) explained article. For an official summary, the Congressional Research Service wrote FY2027 NDAA: Military Basic Pay Raise Proposal.
The 7-6-5 Military Pay Raise, Explained
The name "7-6-5" is just three raise levels, split by rank:
| Rank group |
7-6-5 raise |
Flat ECI raise |
| E-1 through E-5 |
7% |
3.6% |
| E-6 through O-3 |
6% |
3.6% |
| O-4 and above |
5% |
3.6% |
Under 7-6-5, every group gets more than 3.6%. The biggest difference is for E-1 through E-5, at 3.4 percentage points. The smallest is for O-4 and above, at 1.4 points.
Percentages aren't dollars, though. For mid-career ranks, the gap between the two plans is roughly $1,200 to $2,200 a year, depending on rank and years of service. That's an estimate, not an official number.
Your basic pay also drives your retirement pay. A higher raise now means a higher base later. The easiest way to get your exact numbers is the free military retirement calculator. You plug in your own details and see the results, with no math by hand.
NDAA 2027 Pay Raise: What Happens Next
Right now there are two versions of the bill. The House and Senate have to agree on one. That's settled in conference, where members from both chambers work out the differences.
The final NDAA, or the December pay executive order, is where the 2027 figure becomes official. As of October 19, 2026, neither has happened. Nobody can promise you 7-6-5 or 3.6%.
Good places to watch for news:
2027 Military Pay Chart and BAH: What to Expect
The 2027 military pay chart posts after the raise is final. You can check the DFAS pay tables when that happens. Any chart you see online before then is a guess.
BAH is a separate item. Rates are normally announced in mid-December. When they come out, our BAH calculator can help. For background, see our BAH calculator 2026 guide.
Military Pay Raise 2027: Worked Examples
These use example pay, not real pay tables. Your actual pay depends on your rank and years of service.
Example 1: Junior enlisted
An E-4 with example basic pay of $2,900 a month:
- At 7%: $2,900 × 0.07 = about $203 more a month
- At 3.6%: $2,900 × 0.036 = about $104 more a month
- The gap is about $99 a month, or roughly $1,183 over a year.
- New monthly basic pay would be about $3,004 at 3.6%, or about $3,103 at 7%.
Example 2: Mid-grade NCO
An E-6 with example basic pay of $4,000 a month:
- At 6%: $4,000 × 0.06 = $240 more a month
- At 3.6%: $4,000 × 0.036 = $144 more a month
- The gap is $96 a month, or $1,152 a year.
Example 3: Field-grade officer
An O-4 with example basic pay of $7,500 a month:
- At 5%: $7,500 × 0.05 = $375 more a month
- At 3.6%: $7,500 × 0.036 = $270 more a month
- The gap is $105 a month, or $1,260 a year.
Example 4: Senior E-5
An E-5 with example basic pay of $3,600 a month gets $252 more at 7% versus $130 at 3.6%. That's a gap of about $122 a month, or roughly $1,469 a year.
Example 5: Company-grade officer
An O-3 with example basic pay of $6,000 a month gets $360 more at 6% versus $216 at 3.6%. That's a gap of $144 a month, or $1,728 a year.
Notice the pattern. Even the smallest tier beats 3.6%. But all of this depends on which plan becomes final.
What If? Scenarios You Might Face
What if the final raise is 3.6%? Budget as you planned. Your extra pay is the lower number in each example above.
What if 7-6-5 passes? You get a bigger bump, but check which tier your rank falls in. If you're promoted from E-5 to E-6 around January, you could land in a different tier. Read the final text before you count on a number.
What if the answer comes late? Keep budgeting on 3.6%. Then check DFAS for how any change will be handled.
Common Mistakes and Misconceptions
"7-6-5 is approved." It isn't. The House passed it, but the Senate committee's version says 3.6%. The two must be reconciled.
"The 3.6% COLA is my raise." No. The 3.6% retirement COLA is for military retirees. It's separate from the active-duty basic pay raise. For example, a retiree getting $2,000 a month would see about $72 more a month.
"Federal civilians get this raise." Not through the NDAA military raise. Civilians follow a different process. For example, a GS-9 earning $62,000 (an example salary) would look to the civilian pay process. See our 2026 federal pay raise explainer.
"The gap is the same for everyone." It isn't. It changes with rank and years of service.
"The pay chart I found online is official." Only the DFAS pay tables count.
"A bigger raise means a bigger BAH." No. BAH is set separately, based on local housing costs.
Step-by-Step: How to Plan While You Wait
- Find your monthly basic pay. Look at your Leave and Earnings Statement (LES).
- Do the low-end math. Multiply your basic pay by 0.036.
- Do the high-end math. Multiply by 0.07, 0.06, or 0.05, based on your rank group.
- Budget on the lower number. Treat anything extra as a bonus.
- Remember taxes. Basic pay is taxable, so your take-home gain will be smaller than the numbers above.
- Check your retirement picture. Run your numbers in the military retirement calculator.
- Watch for final word. Check DFAS and the news sources above after conference.
- Check housing in December. Look up your BAH when new rates come out.
You can also browse our pay info page for more guides.
Bottom Line
The 2027 military pay raise is not final. The ECI formula says 3.6%. The President's budget and the House bill say 7-6-5. The Senate Armed Services Committee's version says 3.6%.
For mid-career ranks, the difference is roughly $1,200 to $2,200 a year (an estimate). The final NDAA or the December pay executive order will settle it.
Until then, budget on 3.6% and treat extra as a bonus. Then try the military retirement calculator to see your personal results. It's free, and it takes just a few minutes.