The Social Security Administration provides compensation to retired and disabled veterans and surviving spouses. Typically, the government raises the amount of compensation each year as a cost of living increase (COLA) to aid service members and their dependents. The new COLA for 2025 was announced during the previous year to account for inflation.  

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.

When prices of consumer goods and services increase, it can hit disabled veterans particularly hard if they’re living on a fixed income. The VA COLA increase for 2025 increases the amount of benefits veterans receive so they can keep up with rising costs of living.

What Is the VA Cost-of-Living Adjustment (COLA) for 2025?

The VA COLA increase for 2025 determines the benefit amount disabled veterans and military retirees will receive this year.

VA Disability Rates 2025

For 2025, those receiving monthly compensation benefits from the Department of Veterans Affairs (VA) will see an increase of 2.5% from last year. Disability compensation is based on a number of factors, such as your disability rating and whether you have dependents.

Any VA COLA increase is automatically reflected in your payments. You don’t need to take any action to receive the increased amount.

Impact of VA COLA Increase 2025 on Other Benefits

The VA COLA increase for 2025 will impact certain VA benefits like disability compensation, dependency and indemnity compensation (DIC) for children and spouses, special monthly compensation rates, and clothing allowance.

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 saw larger increases in their benefits. For example, in 2023, VA disability rates increased by 8.7%. As the CPI fluctuates, COLA rates adjust and may rise or decline each year. 

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.

What If the COLA Increase Isn't Enough?

Even with a COLA, some vets experience difficulties paying expenses and fall into debt. At TurboDebt®, we strive to help consumers affected by overwhelming debt, connecting you with the tools to reduce unsecured balances and work toward financial freedom.

Contact our team of experts to find out how much you can save and repay your debt faster. It only takes a few minutes to get started with a free consultation. We're grateful for the service of our veterans and want to help you find a trusted partner for debt relief!