The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for 2026. The increase, which is 0.3% higher than the previous year, is designed to ensure benefits keep pace with inflation.

The COLA is calculated annually by the Department of Labor using the Consumer Price Index, which measures changes in the cost of consumer goods and expenses.

Effective Jan. 1, the 2.8% boost will be reflected in monthly checks for eligible veterans, their families and their dependents. The increase applies to all Department of Veterans Affairs benefits, including disability compensation, clothing allowances, and Dependency and Indemnity Compensation.

“The financial strain from the rising cost of living in recent years has been significant,” said DAV Washington Headquarters Executive Director Jim Marszalek. “This COLA is a necessary measure to help curb how inflation has eroded the purchasing power of those earned veterans benefits.”

At 2.8%, the 2026 increase is higher than the previous year’s 2.5% but remains well below other recent high-inflation adjustments of 3.2% (2023), 8.7% (2022) and 5.9% (2021). Still, the new rate is above the average increase of approximately 2.6% over the last decade.

Veterans receiving disability compensation will see an increase this year. VA disability payments will go up about $4.91 per month for those with a 10% rating and $107.28 for those rated at 100% who don’t have dependents.

To calculate personalized compensation rates, visit our VA compensation calculator at dav.org/disability-calculator.