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Employment Cost Index

How the Employment Cost Index is Used to Adjust Active Duty Military Pay

How Are Pay Adjustments Determined?

The Employment Cost Index (ECI) is used to adjust the basic pay of active duty military personnel for each calendar year. Published quarterly, the ECI measures changes in the price of labor, defined as compensation per employee per hour worked. The September ECI wage and salary change for private industry workers is the data point used to calculate the adjustment.

In November 2003, Congress passed a permanent law requiring that annual basic pay increases for active-duty military personnel be indexed to the annual increase in the ECI, for Fiscal Year 2007 and beyond. (See: Section 602 of the Fiscal Year 2004 National Defense Authorization Act; and P.L. 108-136, November 24, 2003; 117 Stat. 1498, amending 37 USC 1009.)


Why Your Organization’s Data Input is Important

We carefully design our survey samples through a scientific process to represent the people and businesses in the United States. We strive to make participation in our surveys as easy as possible. We design survey questions that are easy to understand, and we try to minimize the time it takes to answer them.

How We Protect Your Confidentiality

We understand that confidentiality is important to you. That is why the law and our own security policies strictly protect the confidentiality of participants in our surveys. Federal law prohibits us from releasing any information that could reveal the identity of you or your business without your consent. The information that you provide can only be used to produce statistics. In other words, it can only be used to describe or analyze the characteristics of groups, not individuals, households, or specific organizations.

We have multiple layers of protection for our computer systems and records. We also regularly train our staff about policies to protect your information. These laws and policies ensure that no one will be able to misuse your information or gain an unfair advantage by getting inside information about your business. For more information see the Confidentiality Pledge and Laws page.

To learn more visit and, call 1-202-691-6199, or follow BLS on Twitter @BLS_gov.


Last Modified Date: September 25, 2023