On Oct. 9, 2024, the Social Security Administration announced a 2.5% boost in the cost-of-living adjustment (COLA), the smallest in the last three years.

The Department of Labor determines the annual COLA by measuring the Consumer Price Index (CPI). The CPI is based on a broad sampling of the costs of consumer goods and expenses.

Veterans, families and dependents eligible for VA benefits saw the new amount reflected in their monthly checks effective Jan. 1. The increase affects everything from Department of Veterans Affairs disability compensation to clothing allowances to Dependency and Indemnity Compensation and survivors benefits.

“Many veterans and their families rely on their VA benefits to help cover essential expenses like food, housing and utilities,” said DAV Washington Headquarters Executive Director Randy Reese. “The rising costs of consumer goods and other expenses the last several years have put a significant strain on veterans and their families, and the cost-of-living adjustment is intended to help counteract the impact inflation has on veterans benefits.”

The 2.5% increase for 2025 is well below the 3.2% in 2023, 8.7% in 2022 and 5.9% in 2021. However, this boost is still close to the average increase of about 2.6% for the past decade.

The 2025 adjustment means VA disability checks will go up about $4.28 per month for those with a 10% rating and $93.45 for those rated at 100% who don’t have dependents.

Learn more about VA disability ratings with our VA compensation calculator at dav.org/disability-calculator.