Did you hear? VA benefits are set to increase next year. Here’s everything you need to know about the official VA Benefits Cost-of-Living Adjustment (COLA) for 2025, including what COLA is, how much benefits will increase, and when it will take effect.
How Much Will VA Benefits Increase in 2025?
The 2025 COLA increase is officially set at 2.5%. This means that starting in January 2025, veterans receiving disability benefits will see a 2.5% increase in their monthly payments. To estimate your updated benefits amount, multiply your current monthly payment by 1.025. For example, if you currently receive $1,000, the increase would add approximately $25 to your monthly benefits.
To give a clearer example:
- A veteran with a 10% disability rating will see an increase from $171.23 in 2024 to approximately $175.51 in 2025.
- At the higher end, a single veteran with a 100% disability rating will see their benefits increase from $3,737.85 in 2024 to about $3,831.29 in 2025.
This adjustment will be applied automatically in January 2025, and you should receive notification of the change via mail in December 2024.
Will VA Benefits Increase Every Year?
Since its establishment in 1975, the COLA has provided an annual cost-of-living adjustment for benefits programs to account for inflation. Based on third-quarter Consumer Price Index (CPI) data, COLA is automatically updated each year to reflect changes in the economy. This adjustment ensures that benefits maintain their value even in periods of inflation.
Unlike some government programs, the COLA isn’t affected by politics. Instead, it strictly follows economic data. However, COLA will not lower benefits during periods of deflation; instead, it changes to 0% instead of a negative adjustment, which has happened only three times since it went into effect.
Learn More: Does the VA Reduce Your Benefits if You Make Too Much?
Is This COLA Increase Exclusive to VA Benefits?
The COLA adjustment applies to several federal programs, including Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and Social Security Retirement benefits. Due to the passing of the Veterans Compensation Cost-of-Living Adjustment Act of 2023, the same COLA increase now applies to VA benefits as well. This ensures that veterans receive consistent COLA adjustments just as Social Security recipients do.
Need Help with Your VA Benefits Claim?
Navigating VA benefits can be challenging, and ensuring you receive the full benefits you deserve is important. If you need help with a VA benefits claim, Tabak Law is here to support you every step of the way. We offer free case reviews and operate on a no-fee-unless-we-win basis. Reach out to our legal team today to secure the benefits you’re entitled to!
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