Separately, the MOD has agreed with Her Majesty's Treasury to increase the Operational Allowance by £1.43 per day to £14.51 per day for a six-month deployment.
The Government has accepted the recommendations of the AFPRB in full, which are to be implemented from 1 April 2010. Individuals will therefore see the impact of the award in their April pay statements.
In addition to the 2.0 per cent pay increase, the AFPRB also recommended targeted measures, including the introduction of several new Financial Retention Incentives in specific ranks or trades.
Chief of the Defence Staff, Air Chief Marshal Sir Jock Stirrup, said:
"Our people carry a huge burden on behalf of the nation and it is crucial that they be justly rewarded for that.
"This pay rise is a welcome and appropriate acknowledgment of the work they do on behalf of the country, often in the most dangerous and demanding of circumstances."
Other measures include rates of Specialist Pay, including reserve bands, to increase by 2.0 per cent.
The Unpleasant Living Allowance will be extended to cover Service personnel living and operating in Forward Operating Bases and Patrol Bases in Afghanistan.
An increase in accommodation rental charges for Grade 1 Service Families Accommodation and Single Living Accommodation, with graduated increases below Grade 1, was also recommended and will therefore be adopted.
These increases will equate to between 4 pence and 32 pence per day for Service Families Accommodation and between one pence and seven pence per day for Single Living Accommodation.
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