In 2025, veterans receiving disability compensation from the Department of Veterans Affairs (VA) will get a helpful boost to their monthly payments. Thanks to the Cost of Living Adjustment (COLA), veterans with a 100% disability rating will receive an extra $94 per month. This change is part of an annual update to keep up with inflation and rising living costs.
If you’re a veteran or know someone who receives VA benefits, here’s everything you need to know about this increase, how it works, who benefits, and what steps—if any—you need to take.
Overview
Each year, the VA adjusts disability compensation based on inflation, using data from the Consumer Price Index (CPI-W). For 2025, the adjustment is 2.5%. This means a veteran with a 100% disability rating will now receive $3,831.30 per month, up from $3,737.85. Veterans with lower ratings or dependents will also see increases, though the amounts will vary.
| Key Point | Details |
|---|---|
| COLA Increase (100% rating) | $94 extra per month |
| New Monthly Payment | $3,831.30 starting April 2025 |
| Effective Date | Payments begin in late December 2024 |
| Action Needed | None – updates are automatic |
| Applies to | All VA disability ratings, dependents included |
Meaning
So, what is COLA and why does it matter? COLA stands for Cost of Living Adjustment, and it’s designed to keep your VA benefits in line with inflation. As prices go up for groceries, rent, healthcare, and more, this adjustment ensures your compensation doesn’t fall behind.
For 2025, COLA is set at 2.5%. That means veterans across all rating levels will see a bump in their monthly checks. For those at 100%, it’s a $94 monthly gain. For lower ratings, the increase is smaller but still helpful.
Impact
The 2025 COLA increase helps veterans maintain their standard of living in the face of rising costs. Whether you’re paying for rent, medical expenses, or supporting a family, this adjustment can help reduce financial stress.
Here’s what it looks like for different situations:
- A single veteran with a 100% rating now receives $3,831.30 monthly
- A veteran with dependents may see more, based on their family size
- A veteran at 50% disability will also get a bump, just not as large
These increases apply automatically and show up in payments starting in late December 2024 and continue through 2025.
Benefits
It’s not just disability pay that’s affected by COLA. Other VA benefits will see increases too:
- Dependency and Indemnity Compensation (DIC): For spouses or dependents of deceased veterans
- VA Pensions: Low-income veterans will get a slight raise to help cover essentials
The adjustment helps protect veterans from inflation, ensuring they don’t lose buying power over time.
Claiming
Wondering what you need to do to get the increase? The answer is simple—nothing.
The VA will automatically apply the updated rates to your existing payments. As long as your records (like disability rating and dependent info) are up to date, the new rate should be reflected in your January 2025 statement.
Steps
To make sure everything is in order, follow this quick checklist:
- Confirm your disability rating: Log in to VA.gov or check your award letter
- Review your December 2024 statement: This should show the new payment amount
- Watch for the updated payments: These will begin around January 1, 2025
- Keep your info current: Especially if you’ve had life changes (marriage, divorce, new children)
- No forms required: The VA handles the adjustment on their end
Dependents
If you have dependents—such as a spouse, children, or dependent parents—you’ll likely see a higher monthly payment than a single veteran. The VA adjusts these amounts every year as part of the COLA process.
Make sure your dependent information is accurate and submitted to the VA. If a child turns 18, or if there’s a change in marital status, it could affect your total monthly payment.
Problems
If something doesn’t look right on your January statement, don’t panic. Here’s what to do:
- Call the VA: Their main number is 1-800-827-1000
- File a Notice of Disagreement (NOD): If your payment amount was calculated incorrectly
- Check VA.gov: For any updates on system delays or processing issues
Staying proactive helps ensure you receive every dollar you’re entitled to.
FAQs
How much is the 2025 VA COLA increase?
$94 per month for veterans with 100% disability rating.
When will I see the increase?
Starting in December 2024, applied in January 2025.
Do I need to apply for the COLA?
No, the VA applies the increase automatically.
Does this affect other VA benefits?
Yes, DIC and pension benefits will also increase.
What if my payment is wrong?
Call the VA or file a Notice of Disagreement (NOD).
