VA Cost-Of-Living Adjustment (COLA) and 2018 Compensation Rates
CCK Law: Our Vital Role in Veterans Law
VA adjusts monthly compensation amounts based on the yearly change in the cost of living as determined by Social Security.
What Are Cost-of-Living Adjustments (COLA)?
Cost-of-Living Adjustments (COLA) are periodic changes made to VA compensation rates that allow for VA benefit amounts to increase with the rate of inflation.
How Is COLA Determined?
VA COLA rates are based on the COLA rates set by the Social Security Administration. COLA is based off of the percentage increase in the Consumer Price Index for Urban Wage Earnings and Clerical Workers from the third quarter of the previous year to the third quarter of the current year.
The Consumer Price Index for Wage Earnings and Clerical Workers (CPI-W) is a statistical measure of change of the prices of goods and services over time in a “major expenditure group” such as clothing, food, housing, medical care and other entities that consumers typically purchase.
The Bureau of Labor Statistics calculates CPI-W on a monthly basis. Social Security compares the data from the third quarter of the previous year to the third quarter of the current year to accurately reflect the change in the cost of living in their compensation rates.
VA uses the COLA rate from Social Security to make adjustments to veterans’ monthly disability compensation. COLA rates must be passed by Congress, and the House Subcommittee on Disability Assistance and Military Affairs (DAMA) recently introduced the COLA Act of 2018.
When Does COLA Go Into Effect?
For 2018, VA rates went into effect on December 1, 2017, and were reflected in veterans’ benefit checks starting December 31, 2017. Disabled veterans and surviving family members of veterans will receive the COLA increase, along with recipients of VA pension and retired military veterans.
The 2018 VA compensation rates for veterans without dependents are below.
10% disability rate — $136.24
20% disability rate — $269.30
30% disability rate — $417.15
40% disability rate — $600.90
50% disability rate — $855.41
60% disability rate — $1,083.52
70% disability rate — $1,365.48
80% disability rate — $1,587.25
90% disability rate — $1,783.68
100% disability rate — $2,973.86
Veterans who receive VA disability compensation at the 30 percent rate are eligible for additional compensation for dependent spouses, children, or parents. Use our VA disability calculator to get an estimate of your disability rating.
