The Department of Defense Fiscal year runs from October to October – so the 2022 year has begun. This also means that the 2022 Defense Budget has been submitted and is now within negotiations between Congress and the White House. While the final approval is still pending, the Defense Budget outlines increases in Basic Allowance for Housing (BAH) and pay for the 2022 fiscal year.
The proposed 2022 BAH rate is a 2.7 percent increase for all areas. This is a percentage increase in the current BAH rate. The BAH rates differ per duty station zip code. You can look up the BAH calculator at the Defense Travel Management Office link here. The 2022 rates will not be added until the Defense Budget is approved. You can calculate the expected BAH rate by adding 2.7% to the 2021 BAH rate.
The projected pay raise to basic pay is also 2.7%. The 2.7% number is not a random number. It is calculated using the Employment Cost Index, or ECI, formula. The military pay scale is based on grade and years of service. The pay raise would be for all levels. 2021 Military pay tables are available on the Defense Finance and Accounting Service (DFAS) website here. This increase does not apply to special pays.
If the current Defense Budget is approved, the new pay and BAH rate will be effected January 1, 2022, with the first changes seen in the January 14, 2022, Leave and Earning Statement (LES).