Veterans to see largest compensation boost in decades

Beginning in January, veterans will see a 5.9% cost-of-living adjustment (COLA) increase in their monthly VA benefits—the highest jump in decades.

On Oct. 8, the president signed into law the Veterans’ Compensation Cost-of-Living Adjustment Act of 2021 (Public Law 117–45), which authorized the increase for all disability compensation, clothing allowance and Dependency and Indemnity Compensation (DIC) payments.

The Department of Veterans Affairs adjusts veterans’ monthly disability compensation amounts based on the yearly change in the cost of living as determined by the Social Security Administration. The recently announced 5.9% COLA boost increased the amount paid to veterans and their survivors effective December 2021 and will be reflected in January 2022 compensation payments.

“This COLA increase is absolutely critical for so many disabled veterans who rely on VA compensation to make ends meet,” said Washington Headquarters Executive Director Randy Reese. “But we cannot lose sight of the serious impacts that overall inflation will have on these individuals, especially given the economic difficulties of the past year and a half.”

In the past two years, COLA increases have consistently been less than 2%. The 2022 adjustment is the largest increase in nearly 40 years. VA benefits will increase by roughly $8.50 for a 10% disability rating with no dependents and $185 for veterans rated 100% with no dependents.


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