2025 VA Disability Pay Rates and Cost of Living Adjustment
Starting in 1975, the Social Security Administration (SSA) has announced an annual cost-of-living adjustment, or COLA. COLA also affects VA disability compensation. In 2025, COLA will increase VA disability payments by 2.5 percent.
Highlights of this article include:
- The updated 2025 VA disability compensation rates
- How this year’s COLA compares to past years
- How COLA is calculated each year
How Is Cost-of-Living Adjustment Calculated Each Year?
Each year, the Social Security Administration (SSA) sets an updated cost-of-living adjustment, or COLA. This is 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. Importantly, COLA will not increase unless there is a CPI-W increase too. Therefore, COLA is intrinsically tied to the annual CPI-W increase.
Once the Bureau of Labor Statistics (BLS) calculates the monthly CPI-W, the SSA will pull data from the third quarter (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.
Then the Senate passes new legislation to apply COLA to veterans’ benefits. The Department of Veterans Affairs (VA) will adjust veterans’ monthly compensation accordingly, typically leading to an increase in veterans’ disability benefit payments.
The 2025 Cost-of-Living Adjustment (COLA)
2025 Pay Rates Video When Available
Following the release of the CPI-W for the second quarter (i.e., April, May, and June) of 2024, the SSA set an official 2025 COLA of +2.5 percent.
How Does the 2025 Increase Compare to Previous Years?
2022 COLA
The 2022 5.9 percent COLA increase led to a substantial boost in benefits beginning on December 1, 2021.
2023 COLA
The 2023 COLA increase was significantly high at 8.7 percent. This was the biggest increase since 1981.
2024 COLA
The 2024 COLA was 3.2 percent.
This means that the 2025 COLA is one of the smallest in years.
2025 VA Disability Compensation
A COLA of 2.5 percent means that veterans should get a small raise in monthly disability benefits in 2025. Veterans will see the 2.5 percent increase reflected in their monthly compensation starting December 1, 2024.
For the charts below, CCK has used the 2024 compensation rates and estimated 2025 COLA percentage to estimate VA disability payments in 2025.
2025 VA COLA Increase for a Single Veteran With No Dependents
The pay rates in this chart—including the changes in compensation over the years, for comparison—are for a single veteran with no dependents.
| Combined VA Rating | 2025 VA Disability Pay Rates | 2024 VA Compensation Rates | 2023 Compensation Rates |
| 10% | $175.51 | $171.23 | $165.92 |
| 20% | $346.95 | $338.49 | $327.99 |
| 30% | $537.42 | $524.31 | $508.05 |
| 40% | $774.16 | $755.28 | $731.86 |
| 50% | $1,102.04 | $1,075.16 | $1,041.82 |
| 60% | $1,395.93 | $1,361.88 | $1,319.65 |
| 70% | $1,759.19 | $1,716.27 | $1,663.06 |
| 80% | $2,044.89 | $1,995.01 | $1,933.15 |
| 90% | $2,297.96 | $2,241.91 | $2,172.39 |
| 100% | $3,831.30 | $3,737.85 | $3,621.95 |
Learn when you will receive the updated pay rate by reading the VA disability payment schedule.
2025 VA COLA Increase for a Veteran with Qualifying Dependents
Veterans with a combined disability rating of 30 percent or higher and one or more qualifying dependents are eligible for additional compensation. Veterans’ disability compensation rates vary based on the type and number of dependents they have.
Qualifying dependents include:
- A spouse
- Dependent parents
- A child under the age of 18 or a child between 18 and 23 who is still in school
- An additional child under the age of 18
- An additional child between the age of 18 and 23 who are in school
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When Will Veterans Begin Receiving Updated VA Pay Rates?
After VA adjusts disability rates accordingly, veterans should begin receiving their updated benefits on December 1, 2024. These changes will be reflected in veterans’ monthly payments at the end of the month (i.e., December 30, 2024).
Veterans can see which dates they will be paid using CCK’s VA Disability Payment Schedule for 2025.
Do You Need Help Appealing Your VA Claim?
If you have a service-related condition but VA denied or underrated your claim, then Chisholm & Kilpatrick LTD may be able to help. The VA appeals processes can be difficult but the experienced 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 free case evaluation, reach out to CCK today by calling 888-857-8863.
