President Joe Biden signed the Veterans Compensation Cost-of-Living Adjustment (COLA) Act of 2023 into law on June 14, 2023. The law directs the Department of Veterans Affairs (VA) to apply the same cost-of-living adjustments as Social Security benefits to veterans benefits.

The legislation passed with bipartisan support is an important procedure because it ensures that veterans receive a cost-of-living adjustment that keeps up with inflation. Read on to learn more about the VA COLA increase in 2024 and how much you can expect to receive in veteran benefits.

What Is a VA COLA Increase?

A cost-of-living adjustment (COLA) is an increase made to Social Security and Supplemental Security Income (SSI) to counteract the effects of inflation. A VA COLA is an increase made to veteran benefits specifically.

The consumer price index is used to measure inflation, and COLAs are usually equal to the increase in the consumer price index for wage earners and clerical workers (CIP-W).

When prices of consumer goods and services increase, it hits veterans particularly hard because they’re on a fixed income. The VA COLA increase for 2024 will help increase the number of benefits veterans receive so they can keep up with these rising costs of living.

What Is the VA Cost-of-Living Adjustment (COLA) for 2024?

The VA COLA increase for 2024 determines the benefit amount disabled veterans and military retirees will receive this year.

VA Disability Rates 2024

For 2024, those receiving monthly compensation benefits from the Department of Veterans Affairs (VA) will see an increase of 3.2% from last year. Disability compensation is based on a number of factors, such as your disability rating and whether you have dependents.

For example, a veteran with a 60% disability rating and no dependents will receive $1,361.88. In 2023, the same veteran received $1,319.65. The VA COLA increase for 2024 took effect in December 2023 and was automatically reflected in end-of-month payments starting January 2024. You don’t need to take any action to receive the increased payments.

Impact of VA COLA Increase 2024 on Other Benefits

The VA COLA increase for 2024 will impact certain VA benefits like disability compensation, dependency and indemnity compensation (DIC) for children and spouses, special monthly compensation rates, and clothing allowance.

The DIC compensation for 2024 is $1,612.74, which reflects the general cost-of-living adjustment of 3.2% applicable to VA benefits. Special monthly compensation rates also increased by 3.2% in 2024.

How Is the COLA Increase Calculated?

Each year, the Social Security Administration (SSA) announces a cost-of-living adjustment (COLA) based on the Consumer Price Index (CPI), which measures the increased cost of living. This same COLA now applies to VA benefits.

With high inflation in 2022 and 2023, veterans had seen larger increases in their benefits for those years. For example, in 2023, VA disability rates increased by 8.7%. With inflation now slowing, the increase in 2024 has been lower.

Changes in VA Disability Rates for Conditions

VA disability rates and eligibility depend on your disability rating, which is expressed in percentages. Here’s a closer look at changes in VA disability rates due to the COLA increase for different disability ratings.

VA Disability Percentages for Conditions

Here are the increased monthly VA disability compensation rates for veterans alone.

VA Disability Percentages for Conditions

VA Disability Rates 2024 with Spouse and Children

If you have a disability rating of 10% to 20%, you won’t receive an increased rate even if you have a dependent parent, child, or spouse. Here are the increased monthly compensation for veterans with spouses and children in 2024.

VA Disability Rates 2024 with Spouse and Children

You’ll Receive a 3.2% VA COLA Increase if You Have a 30% Disability or More 

The 2024 VA disability pay rates have increased by 3.2%, effective December 2023, based on the VA COLA increase announced by the Social Security Administration. The official increase was finalized on December 1, 2023.

Use the charts we’ve provided in this guide to determine your expected monthly benefit payout based on your disability rating and whether you have eligible children, dependent parents, or other family members. You’ll receive the increased payout automatically and don’t need to take any action. You can find more information about veteran benefits, including healthcare, housing, education, and VA disability claims, on VA.gov.