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If you have a physical ailment or mental health condition that developed during or after service, you may be eligible for disability compensation.īeneficiaries who receive Dependency and Indemnity Compensation (DIC) will also see an increase in their payment amounts. This increase affects VA disability compensation, which provides monthly tax-free payments to Veterans who got sick or injured while serving in the military or whose service made an existing condition worse. If you are receiving disability compensation benefits from VA, you can use VA disability compensation benefit rates tables to find your current monthly payment amount. When there is an increase, those receiving benefits see a boost in their monthly payments for the upcoming year. The Department of Labor takes a snapshot of the costs of a select group of goods and services and compares those costs to the previous year. Department of Labor, measures the average changes in cost for urban goods and services. The annual COLA increase is tied to the Social Security rate change and is based on the consumer price index (CPI). 1, 2023, Veterans and beneficiaries who receive VA compensation benefits will see an 8.7% increase in their monthly payments-the largest increase in over 30 years. VA is increasing compensation payment rates based on the latest cost-of-living adjustment (COLA) announcement.

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