Veterans and their families receiving VA disability compensation will see a significant financial adjustment in 2025. The Department of Veterans Affairs (VA) has confirmed a 2.5% Cost-of-Living Adjustment (COLA), ensuring benefits keep pace with inflation.
Here, we break down exactly how much more you’ll receive, clarify who’s eligible, and provide the exact payment dates for 2025.
Understanding the VA COLA Increase for 2025
The 2.5% COLA increase directly addresses the rising costs of living and maintains the purchasing power of veterans’ benefits.
The adjustment is automatically applied, meaning eligible veterans do not need to take any additional action to receive this increased compensation.
Updated VA Disability Rates for 2025
The following table details the new monthly payment amounts veterans will receive starting from December 2024 (payable at the end of December):
| Disability Rating | 2024 Monthly Rate | 2025 Monthly Rate | Monthly Increase |
|---|---|---|---|
| 10% | $171.23 | $175.51 | $4.28 |
| 20% | $338.49 | $346.95 | $8.46 |
| 30% | $524.31 | $537.42 | $13.11 |
| 40% | $755.28 | $774.16 | $18.88 |
| 50% | $1,075.16 | $1,102.04 | $26.88 |
| 60% | $1,361.88 | $1,395.93 | $34.05 |
| 70% | $1,716.27 | $1,759.19 | $42.92 |
| 80% | $1,995.01 | $2,044.89 | $49.88 |
| 90% | $2,241.91 | $2,297.96 | $56.05 |
| 100% | $3,737.85 | $3,831.30 | $93.45 |
Note: These amounts represent base rates for veterans without dependents. Those with eligible dependents may receive additional allowances.
Who is Eligible for the 2025 COLA Increase?
All veterans currently receiving monthly VA disability compensation payments are eligible for the 2025 COLA increase. Specifically, veterans must:
- Have a service-connected disability rating of 10% or higher.
- Already be receiving VA disability compensation.
- No new application or action is necessary; the increase is automatic.
2025 VA Payment Schedule
VA disability compensation payments occur monthly, usually on the first business day of the month. If the first business day falls on a weekend or federal holiday, payments are issued the prior business day. Below is the exact payment schedule for 2025:
| Month of Benefit | Payment Date |
|---|---|
| January | January 31, 2025 (Friday) |
| February | February 28, 2025 (Friday) |
| March | April 1, 2025 (Tuesday) |
| April | May 1, 2025 (Thursday) |
| May | May 30, 2025 (Friday) |
| June | July 1, 2025 (Tuesday) |
| July | August 1, 2025 (Friday) |
| August | August 29, 2025 (Friday) |
| September | October 1, 2025 (Wednesday) |
| October | October 31, 2025 (Friday) |
| November | December 1, 2025 (Monday) |
| December | December 31, 2025 (Wednesday) |
It is recommended that veterans set up direct deposit to ensure timely receipt of payments each month.
How the VA COLA is Calculated
The VA COLA increase percentage is determined annually based on the Consumer Price Index (CPI), which measures inflation and changes in living expenses, such as food, housing, healthcare, and other essentials.
The VA COLA increase of 2.5% for 2025 provides meaningful financial relief for veterans and their families, ensuring benefits stay aligned with rising living costs.
Veterans will see increased monthly payments starting from December 2024, automatically applied without requiring any additional steps. Staying informed about these changes can help veterans better manage their financial planning and stability.
FAQs
Do I need to apply to receive the VA COLA increase?
No. Eligible veterans will automatically receive the increased payments without applying.
When does the new COLA increase start in 2025?
The increase applies to payments starting December 2024, with the first adjusted payment disbursed on December 31, 2024.
Are VA disability payments taxable?
No. VA disability compensation is tax-free and does not need to be reported as income for federal tax purposes.