The 2025 Cost-of-Living Adjustment (COLA) has brought much-needed relief to VA benefit recipients. With inflation still taking a toll on everyday expenses, this year’s COLA update provides a modest but meaningful increase in monthly payments—especially for disabled veterans relying on this support.
Increase
For 2025, the Department of Veterans Affairs applied a 2.5% COLA to disability compensation rates. While this is the smallest bump in the last five years, it still represents a critical adjustment to help keep up with the cost of living.
Depending on your VA rating and family status, monthly increases range from about $5 to over $100.
For example, a veteran rated at 100% disability with no dependents will now receive $3,831.30 per month, up from $3,737.85 in 2024. That’s a $93.45 monthly increase, which adds up to over $1,100 more per year.
Calculation
VA disability benefits are calculated based on a veteran’s disability rating, which reflects the severity of their service-connected condition. Ratings range from 0% to 100%, and compensation increases with each 10% increment.
Family situation also matters. Veterans supporting a spouse, dependent parents, or children receive higher monthly payments than single veterans without dependents.
The COLA is tied to the Consumer Price Index (CPI), and is designed to protect beneficiaries from inflation’s impact by adjusting benefit amounts annually.
Timing
The 2025 COLA increase officially took effect in December 2024, but recipients saw the impact in their April payment—deposited on Thursday, May 1. Going forward, beneficiaries will receive the adjusted rates each month.
Here’s when you can expect the rest of your 2025 VA disability payments:
| Month Covered | Payment Date |
|---|---|
| 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 |
Payments are typically issued on the first business day of the following month. If that day falls on a weekend or federal holiday, benefits arrive on the last business day of the current month.
Impact
For many veterans and their families, these benefits are more than just financial assistance—they’re a critical source of stability. Whether it’s covering rent, groceries, medical expenses, or childcare, even a small increase like this year’s COLA can make a noticeable difference.
Reminder
If you’re receiving VA disability payments, make sure your bank details are up to date and watch for deposits on the listed dates. If you don’t see your payment, contact the VA or your bank to resolve any issues promptly.
While the 2025 COLA wasn’t the highest, it continues to provide necessary support to veterans across the country. The system is working to ensure that your benefits keep up with the real-world costs you’re facing.
FAQs
What was the 2025 COLA increase?
A 2.5% increase for VA disability compensation.
When did the COLA take effect?
It took effect in December 2024 and appeared in May 1 payments.
How much extra can I expect?
Increases range from $5 to over $100 per month, based on rating.
Who qualifies for higher payments?
Veterans with dependents receive more than single veterans.
When is the next VA payment?
The May benefit will be paid on May 31, 2025.
