Starting next year, in 2025, disabled vets who are drawing VA disability payments will see an increase in the amount of money they receive on a monthly basis. As a result of the annual Cost of Living Adjustment, 100 percent disabled vets will get an additional $94 more per month on their total payments of $3,831.30. It is an automatic adjustment meant to help veterans to keep pace with inflation and escalating daily costs from groceries to doctors’ visits.
Whether you are a veteran yourself, a caregiver, or just asking questions about what this adjustment means, this handbook makes the ins and outs of the 2025 COLA increase understandable—who qualifies, how to qualify, and what to do if you see something amiss.
Overview
Here is a quick overview of the 2025 VA COLA update:
| Key Point | Details |
|---|---|
| Monthly Increase | $94 for 100% disability rating |
| New Payment Amount | $3,831.30 per month for 100% rating |
| Effective Date | May 2025 (payments start late Dec 2024) |
| Applies to | All veterans receiving VA disability compensation |
| Extra for Dependents | Additional increase for veterans with dependents |
| No Action Needed | COLA is automatic |
| Official Info | www.va.gov |
What Is COLA?
Cost-of-Living Adjustment (COLA) is the annual increase to VA disability benefits. It is linked to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), or inflation of most common items and services.
During 2025, the 2.5% COLA increase will leave veterans’ benefits more valuable with rising prices. Without COLA, their actual purchasing power diminishes with passing time.
Consider an example of a veteran receiving a monthly compensation of $3,737.85 for a 100% disability in 2024. Now, he or she will be receiving $3,831.30 from May 2025.
Who is affected?
All of the veterans who are being paid VA disability compensation will be affected, regardless of whatever rating they may have. This is how it shall go:
- 100% Rating: $94 monthly adjustment
- Lower Ratings: Lower monthly adjustments depending on the rating
- With Dependents: Extra amounts based on family size and composition
Veterans with dependents, spouses, or parents who are dependent can anticipate a higher total adjustment. These extra amounts are calculated into your monthly compensation automatically.
How Will You Receive the Increase?
The good news? You don’t have to do anything. The VA automatically adjusts payments.
Step-by-Step Guide:
- Check Your Rating: Log in to your VA.gov account to see your disability rating.
- Check Your Statement: Starting December 2024, your new pay amount will appear on your benefits letter or your online account.
- Monitor Your Payments: The adjustment starts in May 2025 and will appear in your deposits each month.
- No Forms Are Needed: Simply keep your rating and dependent information current, and you’re done.
What Happens If You Notice an Issue?
Things do go awry. What to do if your payment appears to be in error:
- Call the VA: Dial 1-800-827-1000 and speak with an agent.
- Check Online: Check your VA.gov account for information.
- Submit a Notice of Disagreement: If you believe your payment was calculated incorrectly, appeal.
Special Considerations for Dependents
If you have dependents on your account—i.e., a spouse, children, or a dependent parent—you’ll receive a higher monthly amount. The VA increases these dependent allowances annually.
Keep your dependent data up to date. If a child has just turned 18 or a family status has changed (e.g., divorce or marriage), inform the VA at once to prevent error payments.
Other VA Benefits
The 2.5% COLA affects not just disability compensation. It also affects:
- Survivor Benefits: Dependency and Indemnity Compensation (DIC) benefits paid to survivors of veterans who died will rise.
- VA Pensions: Pension benefits paid to low-income veterans will also rise.
These rises are small but real, keeping veterans and their families financially secure as living costs rise.
Why the COLA Matters
This yearly boost isn’t just a number—it’s a cushion for veterans. It ensures their benefits continue to be enough to cover such essentials as shelter, groceries, medical expenses, and transportation.
In a booming economy where the price of goods and services just continues to rise, especially such essentials as health care and food, COLA adjustments keep veterans from getting left behind.
FAQs:
What is the VA disability adjustment for 2025?
2025 VA Disability Pay Rates to Rise by 2.5%
This raise comes on the heels of the most recent cost-of-living adjustment (COLA).
How do I add more to my VA claim?
You’ll have to download and complete a Decision Review Request: Supplemental Claim (VA Form 20-0995). If you’d like us to obtain medical records and information from your private health care provider, you’ll also have to complete VA Form 21-4142. You can mail this form in. Or you can download it and mail.
Can the VA take away 100% permanent and total disability?
If you hold a 100% Permanent and Total (P&T) rating, it is very unlikely you’ll be re-examined or have your rating taken away unless you’ve done something that’s caused a VA to review your case.
