Cost of Living Adjustment Adds $94 for VA Beneficiaries in 2025 – How to Claim Your Increase

In 2025, veterans receiving disability compensation from the VA will see their monthly payments increase by up to $94 thanks to a new Cost of Living Adjustment (COLA). This yearly update ensures that veteran benefits stay in step with rising living costs, helping recipients maintain their financial stability in the face of inflation.

Whether you’re a veteran or a family member managing benefits, this guide will walk you through everything you need to know about the 2025 COLA increase, who it impacts, and how to make sure you’re receiving the full amount.

Overview

Here’s a snapshot of the 2025 VA COLA adjustment:

Meaning

The COLA increase is tied to inflation and is based on the Consumer Price Index (CPI-W). For 2025, the adjustment is 2.5%. That may not sound huge, but it makes a real difference for veterans relying on these funds for essential expenses like rent, groceries, and medical care.

Breakdown

A veteran receiving 100% disability currently gets $3,737.85 per month. With the COLA, they’ll now receive $3,831.30—a $94 boost. Those with lower ratings will see smaller increases, but everyone gets something.

Dependents make a big difference too. If you’re supporting a spouse or child, you’ll see a bigger overall payment. The VA adjusts these figures annually, so check your dependent info to ensure it’s up to date.

Impact

COLA is more than a routine adjustment—it’s a way to make sure veterans aren’t left behind as prices go up. Whether you’re paying rent, buying medication, or covering basic bills, this increase helps preserve your financial footing.

Benefits

The COLA doesn’t just affect disability pay. It also extends to:

• DIC (Dependency and Indemnity Compensation): Survivors of deceased veterans get an increase too.
• VA Pension Benefits: Those on income-based VA pensions will also see a raise.
• Aid & Attendance or Housebound Allowances: These supplemental benefits are adjusted along with base compensation.

Action

Here’s what to do—spoiler alert: not much.

1. Confirm Your Rating

Check your disability rating on your VA.gov account or your original VA award letter. This determines your base pay.

2. Review Your December 2024 Statement

That’s when the new rates will first show up. Look for the updated amount.

3. Monitor January’s Payment

Payments with the new COLA increase begin in January 2025. You should see the change by the end of that month.

4. No Action Needed

If all your details are current, you’ll get the increase automatically.

5. Keep Contact Info Updated

Log in to VA.gov and make sure your address, phone number, and bank info are all correct.

Issues

Not seeing the correct payment? Here’s how to fix it:

• Call the VA: 1-800-827-1000 for direct support
• File an Appeal: If your amount seems off, you can file a Notice of Disagreement (NOD)

Make sure your dependent info is also up to date. If a child turns 18 or you get married, that could affect your compensation.

Dependents

Veterans with family responsibilities will notice more of a boost due to added allowances for spouses, children, or dependent parents. These rates increase annually, so it’s crucial to keep that info accurate with the VA.

For example, a veteran with a 100% disability rating, a spouse, and two children may see a much higher increase than a single veteran due to the layered support provided for dependents.

The 2025 COLA increase isn’t just about numbers—it’s about stability and honoring the commitment made to those who served. With a 2.5% raise across the board, veterans and their families can breathe a bit easier knowing their compensation is keeping pace with inflation.

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