In 2025, veterans receiving disability compensation from the Department of Veterans Affairs will see an important update to their monthly benefits. Thanks to the annual Cost of Living Adjustment, or COLA, veterans with a 100 percent disability rating will receive an extra 94 dollars per month starting July 2025. This increase is intended to keep benefits in line with inflation and the rising cost of everyday living.
Whether you’re a veteran or someone who supports one, knowing how this change works and what it means is essential for managing financial planning and benefits.
Table of Contents
Overview
Let’s take a quick look at the key details of the 2025 VA COLA increase:
| Key Point | Details |
|---|---|
| COLA Increase for 2025 | $94 per month for 100% disabled veterans |
| New Monthly Payment | $3,831.30 per month |
| Effective Date | July 2025 (with increases applied from April) |
| Impact on Dependents | Higher amounts for veterans with spouses, children |
| Action Required | None; payments are updated automatically |
| Source | Official VA Website |
The COLA is automatic, meaning veterans will receive the increase without needing to apply or take extra steps.
COLA
The Cost of Living Adjustment is designed to keep VA disability compensation aligned with inflation. COLA rates are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. For 2025, the COLA increase is 2.5 percent.
For example, a veteran with a 100 percent disability rating who previously received $3,737.85 per month will now receive $3,831.30 per month starting July. This adjustment ensures that veterans’ purchasing power is preserved despite rising prices on essentials like groceries, housing, and healthcare.
Impact
Veterans across all disability ratings will benefit from this increase, but the exact amount will vary depending on their rating and family situation.
- Veterans with lower disability ratings will receive a smaller monthly increase.
- Those with dependents—spouses, children, or dependent parents—will see a higher monthly amount.
Here’s how the COLA could affect different groups:
| Rating | 2024 Monthly Amount | 2025 Monthly Amount | Increase |
|---|---|---|---|
| 100% Disability | $3,737.85 | $3,831.30 | +$94 |
| With Spouse & Child | Varies | Higher due to dependents | Varies |
| 50% Disability | Lower base amount | Increased by 2.5% | Less than $94 |
The change ensures all veterans keep pace with inflation, not just those at the highest ratings.
Benefits
The COLA increase doesn’t only affect disability compensation. Several other VA benefits are adjusted using the same percentage:
- Survivor Benefits (DIC): Dependents of deceased veterans receiving Dependency and Indemnity Compensation will also see a 2.5 percent increase.
- Pension Benefits: Low-income veterans receiving pensions may also benefit from the COLA, helping maintain their standard of living.
Claiming
The best part about the 2025 COLA increase is that you don’t need to file anything to receive it. It’s automatic.
Steps to Ensure You Receive the Full Benefit
- Confirm Your Disability Rating
You can find this in your VA award letter or by logging into your VA.gov account. - Check Payment Updates
Starting April 2025, compensation statements will begin showing the updated amounts. - Monitor Deposits
Expect the updated payments to show up at the end of July or early August. - Update Contact Info
Make sure your address, phone number, and direct deposit information are current with the VA.
If your information is accurate, you don’t need to take any further action.
Discrepancies
If you believe your updated compensation isn’t accurate, here’s what to do:
- Contact the VA at 1-800-827-1000 or visit the VA website.
- File an Appeal by submitting a Notice of Disagreement if you believe your increase is incorrect or not applied.
Always double-check your payment statements and dependent details.
Dependents
If you have dependents, such as a spouse, children, or dependent parents, your VA compensation is already higher than the base amount. The 2025 COLA increase applies to these dependent rates as well.
Make sure to:
- Notify the VA of any changes in your household.
- Update records if a child turns 18 or if your marital status changes.
Keeping your dependent info up to date ensures you receive the full amount you’re entitled to.
FAQs
When will the COLA increase take effect?
It starts in July 2025, with payments reflected by late July or August.
Do I need to apply for the COLA?
No, the increase is automatic based on your rating.
How much is the increase for 100% disability?
$94 more per month, bringing total compensation to $3,831.30.
Will dependents affect my payment?
Yes, veterans with dependents will receive a higher payment.
What if my new payment is wrong?
Call the VA or file a Notice of Disagreement to resolve it.
