The Department of Veterans Affairs provides financial benefits to former servicemembers who developed a medical condition or disability due to qualifying military service. However, benefit payments typically increase annually to ensure that benefit rates keep up with inflation. By law, the VA must match the cost-of-living adjustments made to Social Security benefits for VA disability benefits. How much will VA disability benefits increase for 2025?
Understanding the 2025 COLA Increase
Late last year, the Social Security Administration announced that Social Security benefits will increase by 2.5 percent in 2025. VA disability benefits will also increase by 2.5 percent. In 2025, we will see a lower COLA than in recent years. For example, the Social Security Administration announced a 3.2 percent COLA for 2023, an 8.7 percent COLA for 2022, and a 5.9 percent COLA for 5.9. However, 2025’s COLA tracks close to the decade average of 2.5 percent.
Effect on VA Disability Compensation Rates
The 2.5 percent COLA for 2025 will mean slight increases in VA disability checks. For example, veterans with a 10 percent disability rating will see a $4.28 increase in monthly payments. A veteran with no dependents and a 30 percent disability rating will see a $13.11 increase in monthly benefits. Veterans without dependents with a 100 percent disability rating will see a $93.45 increase in monthly benefits.
Veterans with a 100 percent disability rating and a dependent spouse, one dependent child, and two dependent parents will see a $110.84 increase in monthly payment, plus an increase of $2.59 per month for each additional dependent child.
Factors that Affect COLA
The Social Security Administration calculates annual COLAs by using the Consumer Price Index for Urban Wage Earners and Clerical Workers, as set by the U.S. Department of Labor’s Bureau of Labor Statistics. The CPI measures the average change in prices paid by urban consumers for various consumer goods and services, such as:
- Food and beverages
- Housing
- Apparel
- Transportation
- Medical care
- Energy
- Education
- Communication
Inflation and increasing prices for various consumer goods and services affect CPI and, in turn, the COLA set by the Social Security Administration. Higher inflation and prices typically lead to a larger annual COLA.
Other Benefits Affected by COLA
Cost-of-living adjustments published by the Social Security Administration affect various government financial benefits. In addition to VA disability benefits, annual COLAs increase Social Security benefits (retirement, disability, and spousal benefits), Supplemental Security Income (SSI) benefits, and Old-Age, Survivors, and Disability Insurance benefits. COLAs also affect other VA benefits, such as Dependency and Indemnity Compensation benefits for the surviving spouses and dependents of qualifying deceased veterans, special monthly compensation (SMC) rates, and Medal of Honor pensions.
What Veterans Should Expect
Veterans receiving VA disability benefits should have begun receiving increased monthly benefits as the increased rates became effective on December 1, 2024. Disability benefits recipients should compare their 2025 benefits statements with their 2024 benefits statements to ensure they have received a 2.5 percent increase in their monthly benefits. If you believe you have not received the correct increase in your VA disability benefits, you can email or call the VA or visit a regional office to speak to a representative. Furthermore, veterans can speak to a VA disability benefits attorney to determine the correct benefits amount they should receive in 2025 for their disability rating and the number of their dependent family members.
Contact a VA Disability Benefits Lawyer to Learn More
If you’ve developed a service-connected impairment or disability, you may have the right to financial benefits from the Department of Veterans Affairs. Contact Veteran’s Legal Center today for an initial consultation to learn more about VA benefits and how annual cost-of-living adjustments can affect benefit rates.