DFAS Pay Schedule 2025: Mark These Dates on Your Calendar

2025 DFAS Military Retirement Pay Schedule

The Defense Finance and Accounting Service (DFAS) pays military retirees on the first business day of each month. When the first falls on a weekend or federal holiday, payment is made on the last business day of the previous month. Here are the 2025 military retirement pay dates:

• January 2025: Thursday, January 2 (January 1 is New Year’s Day)
• February 2025: Monday, February 3 (February 1 is Saturday)
• March 2025: Monday, March 3 (March 1 is Saturday)
• April 2025: Tuesday, April 1
• May 2025: Thursday, May 1
• June 2025: Monday, June 2 (June 1 is Sunday)
• July 2025: Tuesday, July 1
• August 2025: Friday, August 1
• September 2025: Tuesday, September 2 (September 1 is Labor Day)
• October 2025: Wednesday, October 1
• November 2025: Monday, November 3 (November 1 is Saturday)
• December 2025: Monday, December 1

Direct Deposit Timing

DFAS sends payment files to financial institutions in advance of the payment date. Most banks make funds available at the start of the business day on the scheduled date. However, actual timing depends on your bank’s processing policies:

• Major banks (Chase, Bank of America, Wells Fargo): Typically available by 6:00 AM local time on payment date
• Credit unions (USAA, Navy Federal, PenFed): Often post deposits the evening before the official payment date
• Online banks: Usually available by midnight on payment date
• Regional banks: May vary; check with your specific institution

Military-focused financial institutions like USAA and Navy Federal Credit Union have a reputation for posting government deposits early. Many retirees report seeing their retirement pay posted the evening before the official payment date.

Your First Retirement Payment

If you’re newly retired, understanding when your first payment arrives is critical for financial planning. Your first retirement check typically arrives within 30 to 45 days after your retirement date, but the timing depends on several factors:

• Complete DD-2656 submission: Your retirement application must be fully processed before DFAS can begin payments
• Finalized pay records: Your service branch must close out your active duty records
• Election processing: SBP elections and tax withholding choices must be recorded
• Direct deposit setup: Bank account information must be verified

Many retirees experience a gap between their final active duty paycheck (mid-month or end-of-month, depending on branch) and their first retirement check (first of the month). Plan for this transition by saving 2-3 months of expenses before retirement.

Using the DFAS myPay Portal

myPay (mypay.dfas.mil) is your central hub for managing retirement pay. Through this portal, you can:

• View pay statements: Access current and historical Leave and Earnings Statements (LES)
• Update direct deposit: Change your bank account information
• Adjust tax withholding: Modify federal and state tax elections
• Download tax documents: Access 1099-R forms for tax filing
• Update contact information: Keep your address and email current
• Manage SBP: View Survivor Benefit Plan deductions

If you haven’t set up your myPay account, you’ll receive a temporary password in the mail after retirement. You can also call DFAS to request login credentials. Keep your account information current to avoid payment delays or miscommunications.

Troubleshooting Delayed Payments

If your retirement check doesn’t arrive on the expected date, take these steps:

1. Check myPay first: Log in to verify your payment was processed and direct deposit information is correct
2. Contact your bank: Confirm they haven’t placed a hold on the deposit or experienced processing issues
3. Wait one business day: Sometimes bank processing causes slight delays that resolve quickly
4. Call DFAS: If the deposit doesn’t appear within two business days of the scheduled date, contact DFAS at 800-321-1080

Common causes of delayed payments include:

• Incorrect or outdated bank account information
• Bank account closed or changed
• Name mismatch between DFAS records and bank account
• System processing errors requiring manual intervention
• Pending garnishments or debt collections

Mid-Month vs End-of-Month Pay

Unlike active duty pay which comes twice monthly (mid-month advance and end-of-month pay), military retirement is paid once per month on the first. This shift from two payments to one requires budget adjustment for many new retirees.

Tips for transitioning to monthly pay:

• Set up automatic bill payments to align with the first-of-month pay date
• Create a monthly spending plan rather than bi-weekly
• Build a small buffer for expenses that arise before your next payment
• Consider setting aside half your payment for mid-month expenses

COLA Adjustments and Timing

Cost of Living Adjustments (COLA) are applied to military retirement pay annually, typically effective December 1. The increase appears in your January payment. COLA is based on the Consumer Price Index and is announced in October each year.

For 2025, the COLA was 2.5%, applied to payments beginning January 2025. This means if your base retirement pay was $2,000 monthly in 2024, it increased to $2,050 in January 2025.

Key COLA facts:

• COLA applies to both military retirement and SBP annuities
• Under the Blended Retirement System (BRS), those who opted in receive the same COLA as legacy retirees
• COLA compounds over time, making it a valuable inflation protection
• Some states tax the full retirement amount including COLA increases

Keep your myPay account active and monitor announcements each fall for the upcoming year’s COLA percentage. DFAS posts updated pay schedules and COLA information on their website (dfas.mil) well in advance of each calendar year.

Related Articles

• Military Retirement Overview
• Retirement Calculator
• High-36 Calculation
• Survivor Benefits