Editor’s note: This article by Amanda Miller originally appeared on Military.com, a leading source of news for the military and veteran community.

President Joe Biden signed the annual defense authorization bill into law Friday afternoon, confirming the largest raise in military basic pay in decades.

The 2024 National Defense Authorization Act, or NDAA, was approved by Congress this month. It backed the increase for active-duty service members and reservists.

[RELATED: Largest Pay Raise in 2 Decades Part of Final Defense Authorization Bill]

Current troops get a big bump in basic pay for the second year in a row starting in January, while veterans will receive an above-average increase as well. Common allowances are also going up.

2024 Basic Pay Raise

Active-duty troops and drilling Guard and reserve members will receive a 5.2% pay raise in January, the largest increase since getting a 6.9% raise in 2002.

Set according to an established formula, the 5.2% raise was part of Biden’s fiscal 2024 budget request to Congress and was included in the House, Senate and conference versions of the National Defense Authorization Act, or NDAA, before receiving the president’s signature.

The 5.2% raise increases the monthly basic pay for an enlisted E-1 with less than two years of service by nearly $100 to $2,017. For an officer with the paygrade of O-4 with more than six years of service, the raise amounts to about $380 a month for a total of about $7,681. The Defense Finance and Accounting Service will release exact amounts within a dollar of these estimates in January.

[RELATED: Could the All-Volunteer Force Withstand a Full Year Without a Budget?]

2024 BAS and BAH Rates

While the raises in basic pay are accelerating in 2024, the year’s relative increases in the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS) are comparatively modest.

The Basic Allowance for Subsistence, an allotment received by active-duty troops who live outside the barracks, is going up only 1.7% for both officers and enlisted members. In 2023, by comparison, BAS went up 11.2%. In 2024, the monthly BAS payment will be $316.98 for officers, up from $311.68, while enlisted members’ BAS will increase from $452.56 to $460.25.

The 5.4% increase in the BAH coming in 2024 is similar to the increase in basic pay but can’t match 2023’s 12.1% rise. BAH is set at 95% of housing costs in a given area. The nearly one million troops who receive BAH will absorb $84 to $194 of their calculated housing costs monthly in 2024.

[RELATED: Average Housing Allowance Will Rise in 2024, But Still Won’t Cover Full Costs]

2024 Military Veteran Pay Raise

The 5.2% raise in basic pay for active-duty, Guard and reserve members in 2024 joins a 3.2% cost of living adjustment (COLA) given to military retirees and to veterans who receive disability checks from the Department of Veterans Affairs.

[UPDATED MONTHLY: MOAA's COLA Watch]

While 3.2% may look low compared to the 2022 (5.9%) and 2023 (8.7%) adjustments, it's still above the average of 2.6% for the prior 20 years.

That increase means that, for 2024, retired military members and veterans who receive disability payments will receive a $32 increase for each $1,000 of military retirement pay they receive each month. Survivor Benefit Plan payments will increase by the same amount.