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The numbers are in: The VA COLA increase 2025 is official!
But how will it impact your wallet?
Find out exactly how much more you’ll get in your 2025 monthly benefits—and when those extra dollars will hit your account.
Let’s get to it!
Related Guides & Tools:
2025 VA Disability Pay Rates & Chart
2025 VA Special Monthly Compensation (SMC)
2025 VA Disability Payment Schedule
2025 VA Disability Rating Calculator
Table of Contents
Summary of Key Points
- The official VA COLA increase 2025 is 2.5%, effective January 2025: Starting in January 2025, veterans will see a 2.5% increase in their monthly VA disability compensation benefits.
- How the COLA increase is determined: The Cost-of-Living Adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks changes in the cost of goods and services that Americans typically buy.
- VA benefits impacted by the COLA increase: In addition to VA disability compensation, the 2.5% increase will also apply to other key benefits, including VA Pension, VA Special Monthly Compensation (SMC), and the VA Survivors Pension.
What is the COLA Increase for VA Disability in 2025?
The VA COLA 2025 increase is set at 2.5% for military retirees and disabled veterans.
While the 2025 VA COLA increase is lower than last year (3.2%), it’s still in line with the average for the past ten years.
This increase, effective from January 2025, reflects the rate of inflation as determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). It was finalized after being signed into law in November 2024.
Refer to our guide 2025 VA Disability Pay Rates & Charts to determine your estimated monthly payout.
Veteran Cost of Living Adjustment—Explained
The Veteran Cost of Living Adjustment (COLA) is an annual increase in benefits to help veterans and their families keep up with rising living costs.
Approved by Congress and signed into law, the COLA usually takes effect at the start of each year.
It adjusts payments like disability and pension benefits to match inflation, based on the CPI. A COLA is applied only when the CPI increases; if the CPI does not increase, no COLA is issued, and monthly paychecks will have the same amount as before.
How to Calculate Your New Monthly VA Disability Compensation
To estimate how much your VA disability payments will increase in 2025, simply multiply your current monthly compensation amount by 0.025.
Pro Tip: Our VA rating calculator also does some behind-the-scenes math and spits out the dollar amount estimate you’ll receive from the VA. Use the 2025 VA Disability Calculator HERE.
Here’s a quick formula:
- To estimate your 2025 monthly compensation, simply multiply your 2024 monthly compensation by 1.025.
How it works:
The Breakdown:
- Current (2024) Monthly Compensation × 0.025 = Monthly Compensation Increase
- Current (2024) Monthly Compensation + Monthly Compensation Increase = New (2025) Monthly Compensation
For example, if you currently receive $2,000 per month, your increase would be:
- $2,000 × 0.025 = $50
- $2,000 + $50 = $2,050
This calculation works for VA disability ratings, DIC payments, and other VA benefits affected by the COLA.
Note: To confirm the new amount, you can check your VA payment history online through your VA.gov accounts or review your bank statements after the January payment. Use the 2025 VA Disability Calculator HERE.
Other VA Disability Benefits Impacted by the 2025 VA COLA Increase
These VA benefits for disabled veterans will also experience a 2025 VA COLA increase of 2.5%:
(Video) What is the Official VA COLA Increase 2025?
(FAQs) Frequently Asked Questions
Who is eligible for the VA COLA increase?
Disabled veterans and military retirees qualify for the 2025 VA COLA increase of 2.5%. If you retired from the military in 2024, your COLA will be prorated based on which quarter you retired.
For retirees who retired between January 1st and September 30th, the first COLA is prorated, and the amount will be calculated based on the retirement pay start date.
Do I need to apply for the 2025 COLA increase?
No, the COLA increase is automatic. Eligible veterans will see the adjustment reflected in their monthly payments starting January 2025.
How is COLA different from other benefit adjustments?
The COLA is specifically tied to inflation, ensuring benefits keep pace with rising living costs. Other adjustments, like those for new disability ratings, are based on individual circumstances.
Where can I find more information about my VA benefits?
Visit VA.gov or contact your local VA office to assist you with detailed information about your benefits and payment amounts.
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Kelly Olone
Kelly Olone is a military spouse who earned her degree in Psychology from Florida International University. After working in the non-profit sector for several years, she turned to her passion for writing. She aims to contribute to a better understanding of the valuable benefits that veterans deserve. As a mom, Kelly navigates the delicate balance between deadlines and bedtime stories with finesse.
