2023 VA Disability Pay Rates and Cost of Living Adjustment
The 2023 cost-of-living adjustment (COLA) will be 8.7 percent, according to the Social Security Administration (SSA). This will lead to a significant increase in 2023 VA disability rates and monthly compensation for veterans.
Continue reading to view the 2023 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 Bureau of Labor Statistics (BLS) calculates the monthly CPI-W, the SSA will pull 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.
Following this, the Senate will pass new legislation to allow a cost-of-living increase for veterans’ benefits. The Department of Veterans Affairs (VA) will then adjust veterans’ monthly compensation to reflect the updated cost of living. This typically leads to an increase in veterans’ benefits each year.
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 starting 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 beginning December 1, 2020.
The 2022 5.9 percent COLA increase led to a substantial boost in benefits beginning on December 1, 2021.
2023 Cost-of-Living Adjustment (COLA)
Following the release of the CPI-W for the second quarter (i.e., April, May, and June) of 2022, the SSA determined the official 2023 COLA of 8.7 percent. Come the new year, COLA will experience its biggest increase since 1981.
Prior to this announcement, predictions from reliable sources provided veterans with a frame of reference for the potential VA monthly disability benefits they would receive in 2023. For example, the nonpartisan group The Senior Citizens League projected that the 2023 COLA could be as high as 9.6 percent.
In addition, BLS previously calculated a Consumer Price Index for All Urban Consumers (CPI-U) of 8.5 percent for the year ending in July 2022. 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 offered a small glimpse into how quickly the prices of consumer goods and services have been rising over the past year.
Will Disabled Veterans Get a Raise in 2023?
Yes, veterans will get a significant raise in their monthly disability benefits in 2023. When VA applies the 2023 COLA to disability benefits, veterans will see the 8.7 percent increase reflected in their monthly compensation come December. Although the 2022 adjustment of 5.9 percent was already substantial, the 2023 adjustment is even higher.
With the 8.7 percent COLA increase, veterans with a 100 percent disability rating and no dependents will see an extra $289.89 added to their disability compensation, yielding $3,621.95 per month. In comparison, the current 2022 rate for 100 percent disabled veterans is $3,332.06.
2023 VA Disability Pay Rates
The 2022 compensation rates can be used as a baseline to calculate estimates for VA disability payments in 2023. Take the 2023 COLA of 8.7 percent, multiply it by the 2022 compensation rate, and then add that number to the rate. This adjusted figure is your 2023 VA monthly payment.
The pay rates in this chart reflect the changes in compensation over the years based on a single veteran with no dependents.
|Combined VA Rating||2023 VA Compensation Rates (8.7% increase)||2022 VA Compensation Rates||2021 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 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
2023 VA Disability Pay Chart
Veterans receive different pay rates depending on the type and number of dependents. To determine your 2023 rates, see the 2023 VA disability pay chart based on dependency status below.
The figures below are adjusted from 2022 VA disability pay chart using the 8.7 percent COLA. The amounts displayed in each box represent a veteran’s monthly compensation based on their combined VA disability rating and dependency status.
It is important to note that veterans rated under 30 percent do not receive additional compensation for dependents. Veterans rated at 10 percent will receive $165.92 per month, and those rated at 20 percent will receive $327.99 per month.
When Will Veterans Receive Updated VA Pay Rates?
After VA adjusts disability rates accordingly, veterans should begin receiving their updated benefits on December 1, 2022. These changes will be reflected in veterans’ monthly payments at the end of the month (i.e., December 30, 2022).
Veterans can see which dates they will be paid using CCK’s VA Disability Payment Schedule for 2023.
Do You Need Help Appealing Your VA Claim?
If you have a service-related condition but VA denied you disability compensation, Chisholm & Kilpatrick LTD may be able to help. The experienced and knowledgeable veterans’ advocates at CCK have decades of demonstrated success in representing veterans before VA and the Court of Appeals for Veterans Claims (CAVC). For a complimentary consultation, reach out to CCK today at 800-544-9144.
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