The annual Cost-of-Living Adjustment (COLA) is a crucial mechanism that ensures veterans’ benefits keep pace with inflation. For 2025, the Social Security Administration (SSA) has announced a 2.5% COLA, directly impacting Veterans Affairs (VA) disability compensation rates.
This adjustment is vital for veterans with a 90% disability rating, as it enhances their monthly benefits to better align with current economic conditions.
Understanding the 2.5% COLA Increase
The COLA is designed to counteract inflation by adjusting benefit amounts to reflect the increased cost of goods and services. For 2025, the 2.5% increase means that veterans will see a modest rise in their monthly disability payments, effective December 1, 2024, with the new rates reflected in the January 2025 payments.
Impact on 90% Disability Rating
Veterans with a 90% disability rating will experience the following changes in their monthly compensation:
| Dependent Status | 2024 Rate | 2025 Rate | Monthly Increase |
|---|---|---|---|
| Veteran Alone | $2,241.91 | $2,297.96 | $56.05 |
| Veteran with Spouse Only | $2,428.91 | $2,489.63 | $60.72 |
| Veteran with Spouse and One Parent | $2,578.91 | $2,643.38 | $64.47 |
| Veteran with Spouse and Two Parents | $2,728.91 | $2,797.13 | $68.22 |
| Veteran with One Parent | $2,391.91 | $2,451.71 | $59.80 |
| Veteran with Two Parents | $2,541.91 | $2,605.46 | $63.55 |
| Veteran with One Child (no spouse/parents) | $2,366.91 | $2,426.08 | $59.17 |
| Veteran with Spouse and One Child | $2,565.91 | $2,630.06 | $64.15 |
| Veteran with Spouse, One Parent, and One Child | $2,715.91 | $2,783.81 | $67.90 |
| Veteran with Spouse, Two Parents, and One Child | $2,865.91 | $2,937.56 | $71.65 |
| Veteran with One Parent and One Child | $2,516.91 | $2,579.83 | $62.92 |
| Veteran with Two Parents and One Child | $2,666.91 | $2,733.58 | $66.67 |
Note: Additional amounts for each dependent child under 18 increased from $93 to $95.33, and for each schoolchild over 18, from $301 to $308.53. The Aid and Attendance (A/A) benefit for spouses rose from $172 to $176.30.
Calculating Your New Benefit
To determine your exact monthly compensation:
- Identify Your Base Rate: Locate your dependent status in the table above to find your new 2025 rate.
- Add Dependent Benefits: Include additional amounts for each qualifying dependent child or parent.
- Include Aid and Attendance: If your spouse qualifies for Aid and Attendance, add the appropriate amount.
Example Calculation
A veteran with a 90% disability rating, a spouse receiving Aid and Attendance, and two children under 18 would calculate their monthly compensation as follows:
- Base Rate for Veteran with Spouse and Two Children: $2,630.06
- Additional for First Child Under 18: Included in base rate
- Additional for Second Child Under 18: $95.33
- Aid and Attendance for Spouse: $176.30
Total Monthly Compensation: $2,630.06 + $95.33 + $176.30 = $2,901.69
Staying Informed
It’s essential to stay updated on changes to VA compensation rates. Regularly review official VA communications and consult with VA representatives to ensure you receive the correct benefits.
When will the new rates take effect?
The new rates are effective December 1, 2024, and will be reflected in the January 2025 payments.
How is the COLA determined?
The COLA is determined annually by the SSA, based on changes in the Consumer Price Index to account for inflation.
Do I need to apply for the increased rate?
No, the increase is automatic for eligible veterans receiving disability compensation.
