What Is the VA Benefits COLA Increase for 2025?

U.S. military veterans who develop a disabling condition caused by their military service may qualify for various disability benefits from the Department of Veterans Affairs, including monthly disability benefits based on the severity of a veteran’s disabilities. However, the VA annually adjusts financial disability benefits through a cost-of-living adjustment to ensure that benefits keep up with inflation and the rising cost of goods and services that veterans use their disability benefits to pay for. 

Understanding Cost-of-Living Adjustments

The VA automatically increases disability benefit payments annually via a cost-of-living adjustment (COLA). COLAs maintain the purchasing power of a veteran’s disability benefit payments in response to inflation that increases the cost of goods and services. By law, the VA must adopt the same cost-of-living adjustments to Social Security benefits for VA disability benefits. COLAs increase benefit payments for VA disability benefits, Social Security disability benefits, Social Security retirement benefits, and Supplemental Security Income benefits. 

The Social Security Administration calculates annual COLAs that affect VA disability benefits. The SSA bases the annual COLA on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the prior year to the third quarter of the current year. The U.S. Department of Labor’s Bureau of Labor Statistics calculates the CPI-W based on the cost of various consumer goods and services in urban areas, including food, housing, clothing, transportation, and energy. 

The 2025 COLA Increase

Last year, the Social Security Administration announced a 2.5 percent COLA for 2025. The 2025 COLA went into effect for VA benefits starting December 1, 2024. 2025 saw a lower increase in benefits compared to the past few years. 2023 had a 3.2 percent COLA, while 2022 had an 8.7 percent COLA, and 2021 had a 5.9 percent COLA. However, 2025’s 2.5 percent COLA matches the current ten-year average of 2.6 percent. 

How the Increase Affects VA Benefits

Veterans receiving VA disability benefits will see a 2.5 percent increase in their benefits for 2025. For example, veterans with a 10 percent disability rating should see an increase of $4.28 in their monthly checks. Veterans with a 30 percent disability rating with no dependents will see a $13.11 increase in their monthly benefits. Veterans with a 100 percent disability rating with a spouse and a dependent child will see a $102.48 increase in benefits, plus $2.59 for each additional child under 18. 

The 2025 COLA will also increase other VA benefits provided to disabled veterans and their families, including:

• Special monthly compensation, which pays higher compensation to veterans with specific disabilities or who have specific personal needs
• Automobile allowances to help pay for a vehicle with disability accommodations so that a veteran can drive with a service-connected disability
• Clothing allowances to replace clothing damaged by a skin medicine, prosthetic, or orthopedic device required by a service-connected disability
• Medal of Honor pensions for disabled veterans who have earned the Medal of Honor
• Disability housing grants
• Aid and attendance benefits

Veterans should compare their most recent disability benefit payments with their 2024 payments to confirm they received the 2.5 percent COLA for 2025. Veterans who have not received the COLA for their benefits should contact the VA or a VA disability attorney for help getting the correct amount of benefits. 

Contact a VA Disability Attorney Today

If you receive VA disability benefits, an experienced VA disability lawyer can help you understand how COLA increases affect your benefit payments and ensure you receive the correct benefits. Contact Veteran Benefits Law Group today for an initial consultation to learn more about the 2025 COLA increase for VA disability benefits.