DOD Increases Two Hazard Pays for First Time in Nearly 25 Years

The Department of Defense (DOD) has raised two forms of combat-related pay for service members for the first time in roughly a quarter-century, doubling the monthly rate for hostile fire pay and also increasing imminent danger pay.

Hostile fire pay rose from $225 to $450 a month, and imminent danger pay increased from $225 to $275, under a memorandum signed in mid-July by Timothy Dill, the assistant secretary for manpower and reserve affairs. The new rates took effect Oct. 1, the first day of Fiscal Year 2027.

The pay increases mark the first increase in the two stipends since October 2002. Congress had already authorized those higher maximums under federal law.

What changed Oct. 1 was the department’s decision to raise the amounts paid to eligible troops, which had been held at $225 for 24 years, up to those existing ceilings.

“Those who face combat deserve higher compensation that reflects the risks that they willingly undertake on behalf of our nation,” said Anthony Tata, the undersecretary for personnel and readiness, in the department’s announcement.

He also said that “raising imminent danger and hostile fire pays for the first time in two decades is a step toward recognizing that sacrifice.”

What This Means Moving Forward

Hostile fire pay generally applies to service members exposed to hostile fire or a qualifying hostile event. Imminent danger pay applies to those serving in designated foreign areas with qualifying threats.

Both are authorized under the same section of federal law.

Imminent danger pay is prorated by the number of qualifying days a service member spends in a designated area, which the department said works out to about $9.16 per day under the new rate, up to the $275 monthly cap.

Hostile fire pay is paid at the full $450 when a commander authorizes it for that period. Service members cannot receive both forms of pay for the same period of service, and military branches are directed to coordinate with the Defense Finance and Accounting Service to prevent overlap.

Chief Pentagon spokesperson Sean Parnell said the approach aims to draw a clearer line between different levels of risk, according to the memo. If an area is designated for imminent danger pay and escalates into active combat, he said, commanders can immediately shift personnel to hostile fire pay.

What Has Changed Since July

The move follows earlier efforts in Congress to raise the stipends, including a bill introduced by an Arizona lawmaker as previously reported by Military.com that would have boosted monthly combat pay by $50.

It also comes amid ongoing U.S. military operations overseas. The war with Iran recently surpassed the seven-month mark.

The department encouraged service members and their families to consult their local finance offices or command financial specialists to understand how the changes will appear on their leave and earnings statements and to ask about individual eligibility.

Before the 2002 increase, hazard pay rates varied by the type of qualifying duty and a service member’s rank—typically ranging from $100 to $240 a month, according to DOD.

Officials said the new flat and tiered rates are intended to compensate troops more consistently for the varying levels of risk they face.