British military personnel will receive a 2% salary increase, it has been confirmed.
Members of the Armed Forces will receive the increase in their September pay packets, backdated to 1 April 2018.
A one-off 0.9% payment will also be made to bring salaries in line with the Armed Forces’ Pay Review Body's (AFPRB) 2018-19 recommendation of 2.9%.
Currently inflation is at 2.4%, meaning that the annual pay rise for the armed forces is still below this rate.
Confirming the salary increase, the Defence Secretary said: "The Government is committed to world-class public services and ensuring that public sector workers are fairly paid for the vitally important work that they do.
"It is thanks to our balanced approach to public finances - getting debt falling as a share of our economy, while investing in our vital services and keeping taxes low - that we are today able to announce a fair and deserved pay rise for the Armed Forces, their biggest increase since 2010."
Gavin Williamson went on to say the pay award "will deliver an annual increase to starting salaries of £520 for an officer and £370 for a newly trained solider, sailor or airman or woman".
This is in addition to non-contributory pensions and access to incremental pay progression.
The Chair of the All-Party Parliamentary Group (APPG) on the Armed Forces Covenant, Ruth Smeeth, told Forces News she is "delighted" at the salary increase:
"They're going to start paying people properly.
"There is always a question though - where's the money coming from?
"We have to be realistic about how much it costs to keep our country safe, about how much defence really costs the country and how important it is to us.
"That means funding it properly and paying for the people who every day are doing things that we ask of them to keep us safe."
In May, Defence Minister Tobias Ellwood said Britain's armed forces needed a pay rise in order to protect recruitment.
The Government's pay restraint policy has seen a two-year freeze after the Conservative-led coalition came to power in 2010, followed by a 1% annual limit from 2013.
''Where's the Money Coming From?" - Ruth Smeeth, Chair of the All-Party Parliamentary Group (APPG) on the Armed Forces Covenant
Unions and the Labour party have repeated calls for the cap to be lifted, with Jeremy Corbyn urging the Government to "see sense" on the issue last September.
Then, Mrs May confirmed a lifting of the 1% cap would happen in the future, with Number 10 announcing police would get a 1% hike in basic pay along with a 1% "non-consolidated" one-year lump sum.
What The 2% Salary Increase Means In Your Service
Ignoring the non-consolidated one-off payment of 0.9%, here is what the 2% annual pay rise will mean to your salary.
The pay award will deliver an annual increase to starting salaries of £520 for an officer and £370 for a newly trained solider, sailor or airman or woman.
A Royal Navy rating earns around £18,000 a year before tax, an extra 2% would see them earn an extra £360 a year.
A Lieutenant in the Royal Navy earns around £39,629 a year before tax, an extra 2% would see them earn an extra £793 a year.
A private soldier in the Army earns around £18,488 a year, an extra 2% would be £370 a year.
An Army Major earns about £50,417 per annum – 2% more is £1,008 a year.
Royal Air Force
An Aircraft Technician in the RAF who has just finished training earns around £18,489 a year, an extra 2% would be £370 a year.
A pilot who has finished initial training earns around £30,616 – an extra 2% is £612.