President Joe Biden has signed the 2024 National Defense Authorization Act (NDAA) into law, guaranteeing the largest raise in military basic pay in decades. The annual defense authorization bill, approved by Congress this month, supports the pay raise for active-duty service members and reservists.

Starting in January, active-duty troops and drilling Guard and reserve members will see a substantial 5.2% increase in their basic pay, marking the largest raise since 2002. This raise was part of Biden's fiscal 2024 budget request to Congress and received the president's signature after being included in the NDAA.

The 5.2% raise translates to various monthly increases based on rank and years of service. For example, an enlisted E-1 with less than two years of service can expect a raise of nearly $100, bringing their monthly basic pay to $2,017. On the other hand, an officer with the paygrade of O-4 and over six years of service will receive a raise of approximately $380 per month, totaling about $7,681. The exact amounts will be released by the Defense Finance and Accounting Service in January.

In addition to the basic pay raise, common allowances such as the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS) will also see adjustments in 2024. The BAS, an allotment received by active-duty troops living off-base, will increase by 1.7% for both officers and enlisted members. Officers will receive a monthly BAS payment of $316.98, up from $311.68, while enlisted members' BAS will rise from $452.56 to $460.25.

The BAH, which covers 95% of housing costs in a given area, will experience a 5.4% increase. While this is similar to the raise in basic pay, it does not match the significant 12.1% rise seen in 2023. As a result, BAH recipients will bear a monthly load of $84 to $194 of their housing costs in 2024.

Military retirees and veterans who receive disability payments will also benefit from a 3.2% cost of living adjustment (COLA) in 2024. This increase is lower than the adjustments of 5.9% in 2022 and 8.7% in 2023, but remains above the average of 2.6% for the last 20 years. Retired military members, as well as veterans receiving disability payments and Survivor Benefit Plan payments, will witness a $32 increase for every $1,000 of military retirement pay they receive per month. However, those who opted for the Career Status Bonus (CSB/Redux retirement plan) will see a slightly reduced increase of $22 per $1,000 in 2024.

President Biden's signing of the NDAA ensures that military personnel will receive a substantial pay increase in 2024, with active-duty troops and reservists benefiting from higher basic pay, veterans seeing an above-average COLA, and adjustments to common allowances. These efforts aim to support and recognize the dedication and sacrifices made by the men and women serving in the United States military.