2022 VA Disability Pay Chart and Compensation Rates: Cost-of-Living Adjustment
The cost-of-living adjustment (COLA) for 2022 is 5.9 percent, according to a recent announcement by the Social Security Administration. This will lead to a significant increase in next year’s VA disability rates and monthly compensation for veterans.
Continue reading to view the 2022 VA disability pay chart.
What is the Cost-of-Living Adjustment (COLA)?
Every fiscal year, the Social Security Administration (SSA) sets forth an updated cost-of-living adjustment (COLA), based on the percentage increase in the Consumer Price Index for Urban Wage Earnings and Clerical Workers (CPI-W). The CPI-W measures the change in prices of goods and services over time.
After the U.S. Bureau of Labor Statistics (BLS) calculates the monthly CPI-W, the SSA pulls data from the third quarter (i.e., July, August, and September) of the previous fiscal year to the third quarter of the current year to determine the COLA for the upcoming year.
In the fall, the Senate passes new legislation to allow a cost-of-living increase for veterans’ benefits. Then, on December 1, the Department of Veterans Affairs (VA) will adjust veterans’ monthly compensation amounts to reflect the updated cost of living. Veterans can expect to collect their newly adjusted benefits starting December 31.
COLA and VA Disability Rates Over Time
The 2020 1.6 percent COLA increase led to a small jump in veterans’ benefits. The 2020 VA compensation rates went into effect on December 1, 2019 and veterans received their newly adjusted benefits on December 31 of the same year.
In 2021, the COLA increase was 1.3 percent, slightly less than the previous year. This lower rate was due, in part, to the impact of the COVID-19 pandemic on economies worldwide. Veterans still saw a boost in their VA disability benefits starting December 1, 2020. Veterans will continue to receive 2021 VA benefits until 2022 COLA rates take effect this December.
2022 Cost-of-Living Adjustment (COLA) and VA Compensation
Prior to the announcement of the official increase, several reliable sources estimated that the 2022 COLA rate would likely fall between 4.5 percent and 5.3 percent. The nonpartisan group The Senior Citizens League projected over the summer that the 2022 COLA may be as high as 5.3 percent. This is significantly greater than the 4.7 percent they estimated just one month prior. Alternatively, the Kiplinger Letter, a weekly economic and business forecasting periodical, predicted a 4.5 percent COLA increase back in May.
More recently, BLS calculated a Consumer Price Index for All Urban Consumers (CPI-U) of 5 percent for the year ending in May 2021, with a 3.8 percent jump since January 2021. The CPI-U is the measure of the change in retail prices affecting all urban consumers, a more general index than the CPI-W. This offers a small glimpse into how quickly the prices of consumer goods and services have been rising over the past few months.
However, once the Bureau of Labor Statistics released the CPI-W for the second quarter (i.e., April, May, and June) of 2021, the SSA determined the official COLA of 5.9 percent. This is the biggest boost COLA has experienced since the 5.8 percent adjustment in 2009.
Will Disabled Veterans Get a Raise in 2022?
When VA applies the 2022 COLA to disability benefits, veterans will see a significant increase reflected in their monthly compensation come December, especially when compared to the 2021 adjustment of 1.3 percent.
As the COLA rate has increased to 5.9 percent, veterans with a 100 percent disability rating and no dependents will receive an extra $185.64, yielding a total of $3,332.06 a month.
What Will VA Disability Pay Be in 2022?
The 2021 compensation rates can be used as a baseline to calculate estimates for VA disability payments in 2022. Take the 2022 COLA of 5.9 percent, multiply it by the 2021 compensation rate, and then add that number to the rate. This adjusted figure is your 2022 VA monthly payment.
The figure below reflects the changes in compensation rates over the years based on a single veteran with no dependents.
|Combined VA Rating||2022 VA Compensation Rates (5.9% increase)||2021 VA Compensation Rates||2020 VA Compensation Rates|
Additional Compensation for Qualifying Dependents
Veterans with a combined disability rating of 30 percent or higher and one or more qualifying dependents are eligible for additional monthly compensation. Qualifying dependents include:
- A spouse
- Dependent parents
- Children under the age of 18
- Children between the age of 18 and 23 who are in school
2022 VA Disability Pay Chart
To determine your 2022 rates, please reference the VA disability pay chart below. The amounts displayed in each box represent a veteran’s monthly compensation based on their combined VA disability rating and dependency status.
When Will Veterans Recieve Updated VA Disability Pay Rates?
These benefits take effect as of December 1, 2021. Veterans can see which dates they will be paid using CCK’s VA Disability Payment Schedule for 2022.
Do You Need Assistance Appealing Your VA Claim?
The experienced, accredited VA disability attorneys and advocates at Chisholm Chisholm & Kilpatrick LTD have decades of demonstrated success representing disabled veterans and their families before VA and the Court of Appeals for Veterans Claims. For a free consultation, contact us at 800-544-9144.
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