Starting January 1, Disabled Veterans will see a 3.2% Cost of Living Adjustment, or COLA, increase in their monthly VA disability compensation.
Veterans with a current disability rating of 10% or higher will receive this 3.2% raise in their disability pay rate for the entire calendar year of 2024. The COLA increase is in line with the Social Security Administration’s announcement of a 3.2% COLA for 2024.
For example, a Veteran rated 100% with no dependents, receiving $3,621.95 in 2023, will see a monthly increase of $115.90, bringing the 2024 total to $3,737.85. Importantly, disability compensation, pension, and DIC benefits remain exempt from federal taxable income.
Over 5.4 million Veterans and nearly half a million surviving spouses and dependents will financially benefit from the 3.2% Cost of Living Adjustment in VA disability compensation for the year 2024.
Veterans are encouraged to refer to updated information on the VA website, utilizing charts to assess eligibility and anticipate new monthly payments based on the COLA adjustment. The Department of Veterans Affairs has updated information on its website here.
The 3.2% COLA year-over-year increase, confirmed on December 1, follows the Social Security Administration’s announcement on October 12. The COLA is intrinsically tied to the Consumer Price Index for Urban Wage Earnings and Clerical Workers. The COLA increase for 2023 was unusually high at 8.7%, marking the most substantial increase since 1981. For 2024, 3.2% is based on the CPI-W’s percentage increase. The Bureau of Labor Statistics calculates the CPI-W, and after Senate approval, the VA adjusts Veterans’ benefits, leading to an annual increase.
Veterans with a combined disability rating of 30% or higher and qualifying dependents are eligible for additional compensation. Qualifying dependents include: a spouse, a child under 18 or between 18 and 23 still in school, dependent parents, an additional child under 18, and an additional child between 18 and 23 who is in school.
Moreover, Veterans can enhance their VA rating by submitting a new VA disability claim for a separate condition or by pursuing a claim for an increased rating.
Author: Rikki Almanza
Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted connection to the military, a spouse who is a Navy veteran, a father who served in the Air Force for 25 years, and a grandfather who proudly served, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.