What a Promotion Is Really Worth: E-5 to E-6 in Dollars
Promotions pay twice: a bigger basic-pay number today, and a higher pay curve for the rest of your career — plus a quieter bump most people forget: BAH goes up with your grade too.
The immediate raise: E-5 → E-6 at 8 years
| Monthly item | E-5 (over 8) | E-6 (over 8) | Gain |
|---|---|---|---|
| Basic pay | $4,300 | $4,612 | +$312 |
| BAH (San Diego, w/ dependents) | $3,987 | $4,395 | +$408 (tax-free) |
| Total monthly gain | +$720 |
That's about $8,640/year — and because part of it is tax-free BAH, the take-home impact is bigger than a same-size civilian raise.
The career effect: the curve keeps climbing
E-5 basic pay stops growing at 12 years ($4,422); E-6 keeps stepping up to 20+ years ($5,268), and E-7 to 26+. Staying an E-5 from year 12 to year 20 forfeits roughly $74,640 in basic pay alone versus making E-6 — before counting BAH and the pension effect.
The retirement multiplier
Retired pay uses your highest 36 months of basic pay. Pinning on E-7 ($5,592 at 12 years, +$548 over E-6) in your final years raises the pension base for the rest of your life — see how retired pay is calculated.
Compare your current grade against the next one — same ZIP, same years.
Calculate my pay →Frequently asked questions
How much more does an E-6 make than an E-5?
At 8 years of service, $312/month more in basic pay — plus a higher BAH rate (+$408 in San Diego) since BAH rises with grade.
Does BAH increase when I get promoted?
Yes. BAH is set per pay grade, so a promotion raises your housing allowance as well as basic pay.
Why do promotions matter for retirement?
Retired pay is based on your highest 36 months of basic pay, so late-career promotions permanently raise your pension.