President Joe Biden signed the 2022 National Defense Authorization Act (NDAA) on Monday, which included a 2.7% pay raise for all our troops. The pay increase is calculated using the employment cost index (ECI), required by law, and does not take into account factors such as inflation. The ECI tracks private-sector wages and salaries. This year it came in at 2.7%, which is the increase that will be applied to the troop’s military checks in 2022, per the NDAA.
Unfortunately for our troops, this is a problem. In light of raging inflation and the skyrocketing cost of living, this amounts to a pay cut for members of the U.S. military.
According to a Fox Business report, the 2.7% wage increase comes as the consumer price index has risen to 6.8% over the last 12 months. This means the 2.7% simply isn’t going to be ample for our troops as food prices have climbed 6.1% and gas a whopping 58%.
What’s more, roughly 48,000 troops stationed in the continental U.S. are set to lose a cost-of-living allowance meant to help offset prices in expensive locations.
The military increase is over 3% less than the 5.9% increase that Social Security Administration will pay in 2022, due to the increased cost of living for recipients.
According to another Fox report, good news may be in store next year for a larger military pay raise. In the third quarter this year the EPI is sitting at 4.6%. An increase of a 4.6 % pay raise would be the largest granted to troops in 20 years.
It is more than probable that any service member or veteran can tell you that our troops are far from living in luxury on the salary the now receive. As American families everywhere struggle to put food on the table and make ends meet, our military families are going to receive even lower relative wages.
Please remember to keep all our military members and their families in your prayers daily.