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- Personal Finance. 60 VA disability Pay Increase: How much extra benefits you'll get with the next increase?
The annual cost-of-living adjustment (COLA) announcement from the Social Security istration (SSA) is always a critical update for veterans, as it directly impacts VA disability compensation rates. For 2025, veterans can expect a modest 2.5% increase in their VA disability payments, a smaller bump compared to previous years like 2023's significant 8.7% increase and the 2022 increase of 5.9%. Despite being on the smaller side, this year's increase ensures that benefits keep pace with inflation, even if just slightly, adding some extra dollars to monthly budgets for veterans across the country.
For veterans rated at 100% disability, the new rates bring about a meaningful, if modest, financial uplift. In 2024, veterans with a 100% disability rating received $3,737.85 monthly. With the 2.5% COLA for 2025, that rate will climb to $3,831.30, adding an additional $93.45 per month or about $1,121 for the year. Although this might not be a huge windfall, it's a boost aimed at helping veterans keep up with rising costs of living, which is especially helpful in an economy where prices for essentials, such as housing and healthcare, are consistently on the rise.
Veterans with lower disability ratings will also see incremental increases. For example, those with a 50% disability rating will go from $1,075.16 per month to $1,102.04, adding roughly $26.88 monthly. Similarly, veterans with a 10% disability rating, who received $171.23 in 2024, will see an increase to $175.51.
It's worth noting that these figures apply to single veterans with no dependents, so veterans with qualifying dependents may receive additional compensation, which scales based on the number and type of dependents, such as a spouse, children, or dependent parents.
New 2025 VA Disability pay rates for veterans
COLA's foundation lies in the Consumer Price Index for Urban Wage Earners and Clerical Workers (I-W), which tracks the average cost of goods and services. If the I-W increases, the COLA will rise accordingly. In other words, the adjustment directly correlates with inflation, ensuring that veterans' benefits maintain their purchasing power year to year.
For the 2025 adjustment, the SSA used data from the third quarter of 2024 (July, August, and September), which ultimately set the COLA at 2.5% for the year. This process ensures that any inflationary trends from the prior year are reflected in the next year's benefit increase, which then goes to Congress for final approval.
Veterans should see the new rates reflected in their monthly payments beginning on December 1, 2024, with the first adjusted payment arriving on December 30, 2024.