Annual military personnel costs such as pay raises will increase from $130 billion in 2013 to $158 billion in 2025, according to the Congressional Budget Office (CBO), the non-partisan government agency that provides economic analysis of pending legislation to Capitol Hill. The CBO’s conclusion is based on the assumptions that military pay raises will keep pace with the employment cost index (ECI), which measures all wages, and health care costs for service members, retirees and dependents will increase by 6.25 percent annually.