The Veterans Affairs (VA) disability pay rates typically increase each year to adjust to the cost of living. The newest rate change will be an increase of 2.5% for 2025, which reflects the Social Security Administration’s Cost of Living Adjustment (COLA).

Veterans keeping track of their annual changes may notice that the 2025 adjustment is less than the 2023 increase, which was 8.7%. Despite a smaller increase, the VA disability compensation for veterans receiving disability benefits will still increase in 2025.

If you are concerned about the increase or have questions about how the adjustment may affect you and your family, contact the Law Office of Daniel Martin. Our VA disability lawyer is happy to answer any questions you may have, so contact us to schedule your free consultation.

Understanding a Cost-of-Living (COLA) Adjustment

The Social Security Administration (SSA) issues a COLA each year, and the change is based on data calculated by the Bureau of Labor Statistics. The Consumer Price Index for Urban Wage Earnings and Clerical Workers is the basis for the COLA, and the SSA uses this information to calculate what the cost-of-living adjustment should be. The Senate must approve the COLA, at which point the VA updates the monthly disability benefits.

Are disabled veterans set to receive a raise in 2025 VA disability pay rates? Yes, the 2025 increase has been set at 2.5%.

How Will the COLA Increase Impact Your 2025 VA Disability Payments?

The exact amount of the monthly increase varies depending on the veteran’s disability rating and dependents. Veterans with lower disability ratings and no dependents will see lower relative increases than those with higher ratings and more dependents. The examples of VA compensation benefits below include various scenarios and show what increase veterans in those categories might see in 2025.

2025 Veterans Compensation Benefits Rate Tables Explained

Veterans with 10 – 20% disability ratings and no dependents may receive $175.51 – $346.95 per month as of 2025. Other possible adjusted monthly VA disability payments for 2025 are as follows:

  • Veterans rated 40% with a spouse and one child = $922.18
  • Veterans rated 30% with no dependents = $537.43
  • Veterans rated 70% with no spouse and one child = $1,859.09

There are numerous scenarios that vary based on spouses, children, parents, and disability rating, but if you are interested in learning more about what your adjusted VA disability payment may be, contact the Law Office of Daniel Martin.

Different Types of Veterans Affairs Disability Compensation Benefits

There are numerous types of claims that apply to VA disability compensation benefits, including disability compensation, dependency and indemnity compensation, special circumstances, and special monthly compensation, all of which may be impacted by the 2025 COLA increase.

Disability compensation is a monthly benefit paid to veterans with service-connected disabilities. The benefits are tax-free and based on the disability rating assigned by the VA. This is the benefit that most people refer to when discussing VA disability benefits.

Dependency and indemnity compensation payments are made to surviving family members of veterans who died as a result of their service-connected disabilities or during active duty.

Special circumstances benefits are available in specific situations for veterans with disabilities who need additional funds for costs like home or vehicle modifications or special equipment to accommodate their disability.

Special monthly compensation provides added benefits to disabled veterans and their families to cover the cost of assisting with activities of daily living.

Exploring the Various Types of VA Disability Claims

Disability compensation applies to disabilities that veterans develop as a result of their military service, but that is not the only scenario in which veterans can receive disability benefits. The types of VA disability claims are:

  • Pre-discharge claims
  • Pre-service claims
  • In-service claims
  • Post-service claims

Pre-discharge disability claims refer to claims that veterans file less than 180 days after separation from active duty. This type of claim also applies to claims filed while on National Guard duty. Pre-service disabilities existed prior to entering military service but were exacerbated and made worse by serving.

In-service disability claims are based on disabilities that develop during active duty. There are some exceptions, such as drug-related conditions, but a Tennessee VA disability lawyer can guide you through the qualifying medical conditions. Post-service disability claims are service-related conditions that develop after leaving active-duty military service.

Veterans with disabilities that are related to their military service have multiple options for qualifying for VA disability benefits, which is why you shouldn’t feel discouraged if you aren’t sure whether or not you are eligible. Contact the Law Office of Daniel Martin to discuss your service and disability, and let us help you determine if you meet the VA’s qualifications. The upcoming pay rate increase will apply to new applicants, as well, so that anyone receiving VA benefits in 2025 will be paid at the increased rate.

An Experienced and Compassionate Advocate for VA Disability Applicants and Recipients

Whether you are already receiving VA benefits and have concerns about upcoming changes or you want to apply for the first time, our Tennessee VA disability lawyer can provide dedicated guidance and representation. Contact us today to schedule a free consultation.