2025 VA Benefits Increase for COLA : As a result of the Cost of Living Adjustment (COLA), millions of veterans will receive much-needed financial relief for 2025. Veterans and their families will benefit from this adjustment, similar to Social Security payments.
A 2.5% to 2.6% COLA is expected for 2025, slightly lower than recent years because inflationary pressures have eased. The official COLA will not be announced until mid-October 2024.
How Does COLA Impact VA Benefits?
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) changes annually determine the COLA. Inflation-adjusted benefits ensure veterans’ purchasing power is not eroded. VA benefits will increase by around 2.5% in 2025, including:
- Compensation for disabilities
- DIC (Dependency and Indemnity Compensation)
- Pensions from the VA
- SMC (Special Monthly Compensation)
- Amounts to cover clothing and automobile expenses
What is the increase in VA benefits?
You will receive an increase based on your disability rating and the type of benefits you receive. Based on current VA disability rates, here are projected increases:
| Disability Rating | 2024 Monthly Payment | 2025 Estimated Payment (with 2.5% increase) |
|---|---|---|
| 10% | $175.51 | $179.90 |
| 20% | $346.95 | $355.62 |
| 30% | $537.42 | $550.86 |
| 50% | $1,102.04 | $1,129.60 |
| 70% | $1,759.19 | $1,803.17 |
| 100% | $3,621.95 | $3,712.50 |
The increases reflect the projected 2.5% COLA adjustment for 2025. The final COLA may decrease slightly if inflationary trends continue to ease, as expected.
VA Payment Schedule for 2025
VA payments are typically deposited on the first business day of each month. In 2025, payments will be adjusted to account for holidays and weekends. What you need to know:
- In the first adjustment with the new COLA, the payment will be made on January 1, 2025.
- On weekends and holidays, payments are deposited on the previous business day.
VA Disability Compensation Factors
Your total benefit depends on several factors, including your disability rating and the number of dependents you have. Payments will be higher for veterans with a 100% disability rating and dependents. Additional compensation may be available to veterans with spouses, children, or parents who are dependent on them.
The reason for the lower COLA for 2025
2025 VA Benefits Increase for COLA : In 2023, the COLA was 8.7%, the largest increase in over 40 years. Compared to the last few years of high inflation, the 2025 increase reflects current inflation rates. To calculate the COLA, the Bureau of Labor Statistics (BLS) uses the average CPI-W from the third quarter.
How soon will the official 2025 COLA be announced?
Mid-October 2024 will mark the official announcement of the COLA for 2025. The percentage will be based on July, August, and September 2024 CPI-W data.
In conclusion
VA benefits will increase by a modest amount in 2025, due to a COLA adjustment.
In spite of the projected increase of 2.5% to 2.6%, veterans will still be able to maintain their purchasing power.
2025 VA Benefits Increase for COLA : On January 1, 2025, you will see your first adjusted payment after the official announcement in mid-October 2024.
