Well he doesn’t and neither does his outgoing defense secretary:
Just days before he leaves office, Defense Secretary Leon Panetta is recommending military pay be limited, effectively decreasing troop salaries next year.
Panetta will recommend to Congress that military salaries be limited to a 1% increase in 2014. The Pentagon has calculated that the Labor Department’s 2014 Employment Cost Index is expected to be above 1% but wants to still cut back on pay because of “budget uncertainties,” a department official told CNN. In 2013, a 1.7% increase was approved, based on the index, which has been the basis for military pay for the last several years.