How the VA Calculates Back Pay for Disability Benefits

Due to the time it can take the VA to approve a veteran’s disability claim, veterans may become eligible to receive back pay to compensate them for the benefits they should have received. 

Understanding VA Disability Back Pay

VA disability back pay refers to benefits that a veteran with a service-connected disability should have received upon becoming eligible for VA disability benefits but did not promptly receive due to various circumstances. Back pay compensates veterans for the time they spend waiting for benefits after having already become eligible for such benefits. Under VA rules, the effective date for a veteran’s service-connected disability is the later of:

• The date the VA receives the veteran’s disability benefits claim
• The date the veteran first became disabled due to a service-connected condition

However, when a veteran files a disability benefits claim within one year of leaving military service, the VA can set the effective date of the veteran’s disability to the day after separating from the military. 

Veterans can receive back pay for the time between the effective date of their disability and the date the VA approves the veteran’s disability benefits claim. In some cases, a veteran may have a delayed approval when the VA denies their claim on initial review and the veteran successfully appeals that denial. 

Factors for Calculating VA Back Pay

Factors that may determine the amount of back pay a veteran may receive on their VA disability benefits claim include:

• The effective date of the veteran’s disability
• The veteran’s disability rating
• Whether the veteran successfully appeals for a higher disability rating
• Applicable disability benefits rates during the back pay period – the VA subjects disability benefits to annual cost-of-living adjustments

The Process of Determining Back Pay

The VA calculates a veteran’s entitlement to back pay by determining the effective date of their disability, which represents the date the veteran became entitled to disability benefits. Next, the VA will calculate the monthly benefit payment the veteran should have received for each month from their effective date to the present day, adding up each payment. Finally, the VA will deduct any benefit payments or overpayments the veteran may have received to calculate the veteran’s back pay amount. The VA typically pays back pay in a lump sum after approving a veteran’s claim for disability benefits. 

Issues That Can Affect Back Pay

Common issues that can affect a veteran’s right to back pay or the amount of back pay they receive include:

• Appeals of denied claims: A veteran may have an extended waiting period for VA disability benefits when the agency denies the veteran’s claim on initial review, forcing the veteran to appeal that determination through the VA’s administrative appeals process or by filing litigation in federal court.
• Retroactive increases: A veteran may appeal the VA’s initial disability rating and successfully obtain a higher rating on appeal that retroactively applies to the veteran’s effective date or another earlier date. 
• VA processing time: Backlogs in VA disability claims can increase the time the agency takes to process and approve claims.
• Dependents: Veterans may receive increased disability benefits and back pay if they have dependent spouses, children, or parents.

How Veterans Can Ensure They Receive Correct Back Pay

Veterans can protect their right to back pay by keeping detailed records of their VA disability benefits claim and reviewing decision letters to ensure they receive the correct effective date, disability rating, and benefit amount. A VA disability attorney can also help a veteran contact the VA when they receive less back pay than they should have under the circumstances of their case. 

Contact a VA Disability Lawyer Today

When you have an earlier effective date for your service-connected disability, you may become eligible for back pay for your VA disability benefits. Contact Veteran Benefits Law Group today for a free, no-obligation consultation with a VA disability lawyer to discuss your entitlement to benefits.