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2025 COLA Increase for VA Disability Benefits

Each year, the Social Security Administration, or SSA, issues a cost of living adjustment for federal benefit compensation, commonly known as a COLA increase. VA disability compensation is one of the federal benefits programs affected by this adjustment. Therefore, veterans with a VA disability rating usually see a slight increase in monthly compensation each year to offset inflation.

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The 2025 COLA benefits increase is 2.5 percent. Therefore, the maximum monthly disability payment—for a veteran with a dependent spouse, two dependent parents, and one dependent child—will increase from $4,433.39 to $4,544.22. The monthly payment you will receive in 2025 depends on your existing VA disability rating.

However, if you believe that you qualify for a higher disability rating because the Department of Veterans Affairs has incorrectly assessed the severity of your condition or you have developed a condition related to your service-connected disability, Veterans Guide can help. Our attorneys know the process of applying for VA benefits and benefits increases inside and out, and we’re ready to help you get the compensation that you deserve.

2025 COLA Increase

The upcoming 2025 COLA increase of 2.5 percent is lower than the 2024 increase of 3.2 percent and the 2023 increase of 8.7 percent. However, this year’s increase is significantly more in line with the average COLA increase of 2.6 percent. The inflation-fueled 8.7 percent COLA increase in 2023 was the largest in over 40 years. The 2025 COLA increase goes into effect on December 1, 2024, and will be effective until December 1, 2025.

The SSA calculates COLA to offset the impact of inflation on federal benefits. COLA calculations have occurred automatically every year since 1975, providing beneficiaries with modest increases in income based on the impact of inflation on the national economy. Before the introduction of annual COLA benefits increases, federal beneficiaries technically lost money each year as the spending power of their monthly compensation decreased. Regular COLA increases help stabilize your income and protect you from financial loss.

How The SSA Determines COLA Increases

The SSA determines COLA increases based on the annual percentage increase of the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The CPI-W percentage increase is measured from the previous year’s third quarter to the current year’s third quarter.

If there is no increase to the CPI-W, there is no COLA increase to federal benefits. However, years without COLA increases are highly uncommon. The SSA has issued COLA increases for federal benefits for 50 years as of 2025, and only three of those years have not seen a COLA increase: 2010, 2011, and 2016. Generally, you can reasonably expect an annual COLA benefits increase if you receive VA disability benefits.

How the COLA Increase Impacts Your VA Benefits

COLA increases apply to all federal benefit programs, including VA benefits. The 2025 COLA increase of 2.5 percent will increase the base compensation of a 100 percent disabled veteran without dependents from $3,737.85 to $3,831.30. 

Your monthly VA base compensation depends on factors such as the number of dependents you support, the nature of your disability, and the impact of your disability on your everyday life. Additional factors can also increase your benefits, such as if you suffered a serious disfigurement, the loss of an eye, or the amputation of a limb during your military service. In addition, you’ll receive more benefits if you are housebound or need care from another person or institution. 

Fortunately, getting a basic estimate of your monthly compensation after the COLA increase is easy. For more information on how the 2025 COLA increase will impact your VA disability benefits, you can use Veterans Guide’s online 2025 COLA Increase Disability Pay Chart.

Veteran Alone+No ChildrenVA Disability Rating
$175.5110%
$346.9520%
$537.4230%
$774.1640%
$1,102.0450%
$1,395.9360%
$1,759.1970%
$2,044.8980%
$2,297.9690%
$3,831.301000%

How Does the VA Determine Your Disability Rating?

The VA determines disability ratings on a scale from 0 to 100 percent disability, depending on the extent to which your service-connected condition impacts your daily social and professional functioning. Different service-connected conditions are eligible for different disability percentages. For example, veterans with PTSD can receive a rating of 0, 10, 30, 50, 70, or 100 percent, depending on the severity of their disability.

The amount of monthly compensation you qualify for depends on your rating and your number of dependents. If your disability rating exceeds 20 percent, your monthly compensation increases based on how many dependents you support, including spouses, children, and parents. For example, the current basic monthly compensation for a 60 percent disabled veteran is $1,361.88. With the addition of a spouse and one child, that number increases to $1,577.88. Therefore, in addition to increased compensation to more accurately reflect their disability, disabled veterans with 10 and 20 percent disability ratings have good reason to pursue a higher rating to meet their families’ needs. 

To estimate your VA disability benefits rating, try the 2025 VA Disability Calculator tool located on our website.

Do You Qualify for a Higher Disability Rating?

There are various reasons a person might qualify for a higher disability rating. These include combined disability rating eligibility, inaccurate denial of VA claims, and more.

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One way to increase your disability rating is to seek a combined rating for all your qualifying conditions. Veterans with multiple service-connected disabilities or a secondary condition stemming from a service-connected one may be eligible to receive a combined disability rating. A combined rating will entitle you to increased monthly compensation. The VA calculates combined disability ratings by adding your existing disability ratings together in order of severity and then finding the result on the Combined Ratings Table.

If you believe you may qualify for a higher VA disability rating, Veterans Guide can help. Our experienced veterans’ benefits attorneys regularly handle VA cases involving combined disability ratings, VA Board appeals, and other problems affecting veterans with service-connected disabilities. We fight hard to make a strong case for your benefits increase and help secure the compensation you deserve. We’re proud to serve those who have served our country.

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Matt is a VA-accredited attorney who co-founded NAVDA in 2023. Matt has helped veterans with the VA disability appeals process since he became accredited in 2021.