The Armed Forces is to be awarded a 2.6% pay rise from April, defence secretary Des Browne has announced.
It follows recommendations by the independent Armed Forces' Pay Review Body, and is bigger than the 1.9% rise imposed on other public sector workers.
Browne said the increase was consistent with the government's 2% Consumer Prices Index inflation target.
The salary rise will apply to all military personnel, as well as the longer separation allowance and specialist pay rates. It will see a boost in a private's starting salary from £15,677 to £16,227.
The pay increase is a relief for the Armed Forces, which has been plagued by a string of unsavoury incidents, including a faulty computer system which led to thousands of servicemen and women being underpaid, and a struggle to recruit staff.
Defence minister Derek Twigg said: "This pay award recognises the tremendous contribution all our Service personnel continue to make at home and overseas."