The military retired pay chart 2025 reflects the annual cost-of-living adjustment (COLA) that directly affects monthly retirement checks for over 2 million military retirees and survivors. According to the Department of Defense Office of the Actuary, the 2025 COLA increase was set at 2.5%, which took effect with the December 2024 payment issued in January 2025.
Many retirees struggle to understand how this adjustment flows through their specific pay grade and years of service, often leaving money on the table by misreading the charts.
This guide breaks down exactly how the 2025 pay chart works, where to find your personalized rate, how disability offsets and CRDP interact with it, and the most common mistakes to avoid when projecting your income for the year.
How the 2025 COLA Affects Your Retired Pay
Every year, military retired pay adjusts based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration announced a 2.5% COLA for 2025, and the same percentage applies to military retired pay under current law. This means a retiree receiving $2,500 per month in 2024 now receives $2,562.50.
The adjustment is automatic. You don't need to apply or file anything. The Defense Finance and Accounting Service (DFAS) applies the increase to your account and updates the military retired pay chart 2025 accordingly.
The timing matters: the COLA shows up in your January 2025 payment, but because military pay is issued on the first business day of the following month, the increase actually reflects December 2024 entitlement. Your December 31, 2024 Leave and Earnings Statement (LES) will show the new rate.
Many retirees use the military retired pay chart 2025 to verify that their January statement matches the published figures for their grade and years of service.
How to apply this: Log into your myPay account in early January and verify your net pay reflects at least a 2.5% gross increase over the prior month.
Reading the Military Retired Pay Chart 2025 by Pay Grade
The military retired pay chart 2025 organizes monthly payments by final pay grade (E-1 through O-10) and years of creditable service. DFAS publishes these charts on its official website, and they are also available through the Veterans Benefits Administration for those with service-connected disabilities.
Most retirees fall under one of three retirement systems: Final Pay, High-36, or the Blended Retirement System (BRS). Each system uses a different multiplier against base pay. High-36, the most common for retirees who entered service between 1980 and 2017, multiplies 2.5% of the average of your highest 36 months of base pay by years served.
A retiree at E-7 with 20 years under High-36 receives 50% of their high-36 average. At 24 years, that rises to 60%. The chart simply displays those percentages converted to dollar amounts based on the 2025 pay tables.
When reviewing the military retired pay chart 2025, be sure you are looking at the correct retirement system column, because Final Pay and BRS amounts differ meaningfully at the same grade and years of service.
How to apply this: Pull your most recent Retiree Account Statement from myPay and locate your high-36 base amount, then cross-reference it against the published chart for your grade.
Disability Pay, CRDP, and How They Interact
Many military retirees also receive VA disability compensation. By law, you cannot receive both full military retired pay and full VA disability pay unless you qualify for Concurrent Retirement and Disability Pay (CRDP). Without CRDP, your retired pay is reduced dollar-for-dollar by the amount of your VA disability.
The military retired pay chart 2025 does not automatically reflect VA offsets. This creates confusion when a retiree compares their expected chart amount with what actually lands in their bank account. The difference is often the VA waiver.
CRDP eligibility generally requires a VA disability rating of 50% or higher and at least 20 years of qualifying service. When eligible, DFAS restores your retired pay gradually under a phase-in schedule that was fully implemented by 2014. The result: you receive both payments.
Checking the military retired pay chart 2025 against your actual deposit is the fastest way to spot whether a VA waiver is still being applied to your account incorrectly.
How to apply this: Check your DFAS Retiree Account Statement for the "VA Waiver" and "CRDP" line items to confirm whether your chart amount was reduced or restored.
Taxes and the Military Retired Pay Chart 2025
Your gross retired pay from the chart is not what you take home. Federal income tax withholding applies unless you live in a state that exempts military retirement income. States with full exemptions include Florida, Texas, Nevada, and more than a dozen others. The IRS treats military retired pay as ordinary income.
The Internal Revenue Service confirms that military retirement pay is fully taxable at the federal level unless contributed to under a Roth option in BRS. This means your chart amount minus federal withholding, state tax (if applicable), Survivor Benefit Plan premiums, and any allotments equals your net deposit.
The military retired pay chart 2025 shows gross entitlement only, so always work backward from that figure when budgeting your actual take-home pay.
Survivor Benefit Plan (SBP) premiums reduce your taxable retired pay because they are paid with pre-tax dollars. This is a detail many retirees miss when reconciling their chart figure with their bank statement.
How to apply this: Use your December LES to estimate your 2025 net pay, and adjust your W-4 through myPay if your withholding no longer matches your tax situation.
Where to Find Your Personalized 2025 Amount
The most accurate source for your individual rate is your Retiree Account Statement in myPay, maintained by DFAS. The published military retired pay chart 2025 gives you the baseline, but your personalized statement accounts for SBP, VA offset, CRDP, taxes, and any garnishments.
A second source is the annual COLA letter DFAS mails or posts each December. It states your new gross monthly entitlement effective January 1. Keep this letter alongside the military retired pay chart 2025 for your grade so you can spot any mismatch between the general chart and your personalized rate.
You can also estimate your own amount using the DoD retirement calculators available through the Department of Defense portal, which allow you to input your grade, years, and retirement system to generate a projected figure.
How to apply this: Save a PDF of your January 2025 Retiree Account Statement and compare it against the published chart for your grade and years to identify any discrepancy worth reporting to DFAS.
Comparison: What Your Chart Amount Actually Includes
| Item | What it is | Action to take |
|---|---|---|
| Gross retired pay | Base chart amount for your grade and years | Verify against DFAS chart |
| VA waiver | Reduction if receiving VA disability without CRDP | Check your VA rating and CRDP eligibility |
| SBP premium | Monthly deduction for survivor coverage | Confirm election matches your intent |
| Federal withholding | IRS income tax deducted at source | Adjust W-4 if needed |
| Allotments | Voluntary deductions you set up | Review annually for accuracy |
Frequently Asked Questions About military retired pay chart 2025
When will the 2025 COLA appear in my bank account?
The 2.5% increase appears in your January 2025 payment, which is issued on the first business day of January for December 2024 entitlement. If you have direct deposit, the funds typically arrive on January 2 or 3 depending on your bank's posting schedule.
Your December LES, published in late December, will show the new gross rate even before the deposit hits. Checking the military retired pay chart 2025 against that LES is a smart habit to catch errors early.
Does the military retired pay chart 2025 differ for reservists?
Yes. Reserve retirees under age 60 receive "retired pay awaiting age 60" status and do not draw from the standard chart until they reach that threshold. Their eventual pay is calculated using the same grade and years of service formulas but based on the pay tables in effect when they turn 60, not 2025.
Gray area retirees should focus on projected 2030 or later charts rather than the military retired pay chart 2025.
What if my 2025 payment is lower than the chart shows?
A lower-than-expected payment almost always traces to a VA waiver, SBP premium, or a debt garnishment. DFAS sends a debt notification letter before any offset. If no letter arrived, call DFAS at 1-800-321-1080 and request a line-item breakdown of your military retired pay chart 2025 reconciliation.
Can I use the 2025 chart to calculate my Survivor Benefit Plan amount?
Not directly. SBP is calculated as 55% of your elected base amount, not 55% of your full retired pay. Your base amount is chosen at retirement and may be less than the full chart figure. The 2025 COLA applies to SBP annuities as well, so surviving spouses also see the 2.5% increase.
The military retired pay chart 2025 can still serve as a reference point for estimating your elected base amount before applying the 55% multiplier.
Does the chart include combat-related special compensation?
No. CRSC is paid separately by the VA and never appears on your DFAS retired pay statement or the standard military retired pay chart 2025. CRSC is tax-free and requires a separate application through your branch of service. If you qualify for both CRSC and CRDP, you must choose one each year during open season.
Conclusion
Understanding the military retired pay chart 2025 comes down to a few key actions you can take right now.
- Verify the 2.5% COLA increase appears on your January 2025 Retiree Account Statement in myPay.
- Cross-check your gross amount against the published DFAS chart for your pay grade and years of service.
- Review your VA waiver, CRDP status, SBP premium, and tax withholding for accuracy.
- Save your December 2024 and January 2025 statements for year-over-year comparison.
Your retired pay is one of your most valuable financial assets. Take 15 minutes this month to log into myPay, confirm the military retired pay chart 2025 numbers match your statement, and flag any discrepancy with DFAS before it compounds over the year.
