This was due in large part to the COVID-19 pandemic and its impact on economies worldwide. In 2021, the COLA increase was 1.3%, slightly smaller than the previous year. The VA compensation rates for 2020 went into effect on December 1, 2019, and veterans received their adjusted benefits starting on December 31. In 2020, the 1.6% COLA increase led to a small jump in veterans’ disability benefits. VA Disability Pay Rates and COLA Rates Over Time 2020 COLA It also helps to ensure that veterans can maintain their standard of living as prices increase. The COLA is an important part of ensuring that veterans’ disability benefits keep pace with the rising cost of living. The new pay rate is effective on the first day of the month after the COLA is announced. Second, the COLA is used to determine the new pay rate for benefits. The COLA influences yearly pay rates for VA disability benefits in two ways: First, the COLA is used to determine the amount of the annual increase in benefits. The yearly COLA is effective as of December 1st and is the same percentage increase for VA disability pay rates. The CPI-W measures the average change in prices paid by urban consumers for a market basket of goods and services. This adjustment is based on the rise in cost-of-living as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). What Is the Cost-of-Living Adjustment (COLA)?Įvery fiscal year, the Social Security Administration (SSA) sets an annual increase in benefits called a cost-of-living adjustment (COLA). According to recent projections by The Senior Citizens League (the nation’s largest nonpartisan senior citizen group), the 2023 cost-of-living adjustment (COLA) will likely be around 8.7%. The total amount payable is $1,807.17.Veterans experiencing the effects of inflation are likely to see some relief next year with a potential record increase in 2023 VA Disability Pay Rates. Add $111.00, additional for A/A spouse, to the rate for a 70% veteran with dependency code 12, $1,696.17. For example, veteran has A/A spouse and 2 minor children and is 70% disabled.
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