The cost of living adjustment (COLA) that happens every January does not just affect Social Security benefits, it is applied to every government benefits that Americans receive, including VA benefits. This means that those eligible for VA benefits have been receiving around 100$ more in their monthly checks. This was due to the 2.5% COLA increase and will continue until the end of the year when benefits are adjusted once more.
Unlike most Social Security benefits, like retirement which is the one most people are familiar with, VA benefits depend on a multitude of factors and can vary significantly depending on your disability rating and your household situation. After your claim is reviewed and your medical evaluation is done, the VA gives you a disability rating between 0% and 100% and that number basically measures how serious your service-connected condition is. The higher the rating, the more you get paid.
Another factor that can impact the amount of benefits you are awarded is the amount of dependents that you are supporting, like a spouse, kids, or even a dependent parent, as those with dependents will get a higher check. In practical terms this means that a veteran with a 100% rating who is married will see more money than a single veteran with the same rating. This is because oftentimes due to deployments and changes in station most spouses are not able to find consistent employment and end up depending on their partner’s military pay to make ends meet, leaving them with large gaps in employment history and an inability to return to the workforce in the same capacity once their military spouse is discharged.
Since the point of VA payments is to help cover the effects of injuries or conditions caused by military service and to make sure vets can still maintain a decent quality of life, the COLA is another tool in the arsenal to help with the increase in inflation costs. While inflation goes up and down during the year, the yearly increase helps keep families afloat especially considering how expensive basic stuff like rent, groceries, and medical care has gotten.
Since not every veteran makes the same, not all of them will be getting a $100 increase. Those who come the closest are vets with a 100% disability rating and no dependents, who, in 2024 were getting $3,737.85 a month. With the 2.5% their new payment would be $3,831.30. Some that are making more money will be getting more than $100 dollars and those who make less will be getting less, but the percentage remains the same.
Why are the VA payments increasing now
Although the COLA adjustment was made in January, the payments reflecting that change are not automatic (again, unlike Social Security, which adjusts automatically). The first check with the new amount reached bank accounts on May 1, covering April’s benefits. The next one, set to land on May 31, will reflect the full May benefit with the adjusted rate.
Since these benefits are key for many families, knowing when you get paid is crucial. Normally, payments go out on the first business day of the month and cover the previous month’s benefits, and just like with Social Security, if that day happens to be a weekend or holiday, you will receive your payment the business day before to ensure that you can meet all your financial obligations on time.
The calendar for the next VA payments in 2025 is the following:
- May: May 31, 2025
- June: July 1, 2025
- July: August 1, 2025
- August: August 30, 2025
- September: October 1, 2025
- October: November 1, 2025
- November: November 29, 2025
- December: December 31, 2025