What will the VA COLA be for 2023?

Disabled veterans and military retirees will see their monthly checks get a boost in 2023. The Social Security Administration (SSA)announced the biggest cost-of-living adjustment (COLA) since 1981 after the September 2022 inflation report was released.

Military pensions and disability payments, like most other similar government payments, are required by law to use SSA calculation to keep benefits in line with rising prices. Starting in January 2023, an 8.7 percent increase will be applied to monthly payments surpassing last year’s 5.9 percent bump.

Also see:

  • Can I qualify for Social Security disability benefits if I get veterans’ benefits?
  • What is the maximum amount you can earn from Social Security in 2023?
  • Social Security calculator: how to estimate my benefits with COLA increase in 2023?
  • 2023 COLA gives Supplemental Security Income payments a boost

How will the 2023 COLA affect military pensions?

For military retirees that didn’t opt for the Career Status Bonus (CSB/Redux retirement plan), they will see an additional $87 per $1,000 that they receive from their pension. Those that enlisted after 31 July 1986 and took the $30,000 CSB/Redux bonus on their 15th year of active service will see a smaller COLA of $77 increase per $1,000. Those receiving Survivor Benefit Plan payments will also receive the COLA increase starting January 2023.

How much will veteran disability payments be in 2023?

While the official figures from Veteran Affairs won’t be out until 1 December 2022, disabled veterans will also benefit from the 2023 COLA boost to monthly payments. Using the 2022 VA disability pay chart, those with a 10 percent rating should see a raise of $13.28 per month next year increasing their monthly payments to $165.92.

Can you get both Social Security and Veterans Affairs benefits?

Since 1957, Social Security has covered all active duty military service and active duty training members, and was expanded in 1988 to include those on inactive duty service in the armed forces reserves.

As such, you can get both the standard military retirement payments from the VA and Social Security benefits. The two are independent programs, meaning that there is no reduction of your Social Security entitlement because of retirement benefits. The size of your Social Security benefits is based on your work history, earnings level and the age at which you chose to start claiming the payments.

STAR is a rehabilitation program for Special Operations Forces service members and Veterans. It facilitates recovery, function, reintegration, and transition.https://t.co/UkUOw4Bn6L

— Veterans Affairs (@DeptVetAffairs) October 12, 2022

What is the point of the COLA increase?

The COLA increase is designed to keep the monthly benefits in line with inflation as the cost of living rises year-on-year. The price of goods and services rises over time so benefits programs like Social Security must reflect that.

How is the COLA calculated?

The SSA calculates the annual cost-of-living adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Put together by the BLS, the CPI-W is a measure of how the cost of goods and services changes over time.

By comparing the CPI-W in the third quarters (July, August and September) of the current and previous year, the SSA determines how much benefits need to increase by in the coming 12 months to avoid falling behind the rate of inflation.


What will the VA COLA be for 2023?

Due to nationwide inflation, VA compensation rates will dramatically increase in 2023. The final VA disability COLA will be determined by the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 3rd quarter (July, August, and September 2022).

According to the U.S. Bureau of Labor Statistics (BLS), “The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in August on a seasonally adjusted basis after being unchanged in July, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 8.3% before seasonal adjustment.”

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

What will the VA COLA be for 2023?

A COLA is a change in the amount of compensation paid for your disability rating. This is usually based on changes to the national cost-of-living rate due to inflation.

According to the United States Social Security Administration (SSA), “Since 1975, Social Security’s general benefit increases have been based on increases in the cost of living, as measured by the Consumer Price Index. We call such increases Cost-Of-Living Adjustments, or COLAs. We determined a 5.9-percent COLA on October 13, 2021. We will announce the next COLA in October 2022.”.

Does COLA increase affect VA disability?

COLA does not increase your rated disability. It merely changes the monthly payment for that disability rating.

Once the BLS calculates the monthly CPI-W, this will then be used by the SSA after they pull the data from the third quarter of the previous fiscal year and this year’s third quarter (July, August, and September) to determine COLA for the upcoming year. The Department of Veterans Affairs (VA) will then adjust veterans’ monthly compensation to reflect the updated cost of living.

Will VA Disability Compensation Rates Increase in 2023?

The VA will provide a cost-of-living adjustment (COLA) for 2023 of between 9.3% to 11.4% based on recent projections. The decision should be available October 13, 2022. This is a very significant adjustment to address the overall inflation rate nationwide:

  • 2020 COLA 1.6%
  • 2021 COLA 1.3%
  • 2022 COLA 5.9%

Projected pay rates:

Combined VA Rating Estimated 2023 VA Compensation Rates (9.6% increase) 2022 VA Compensation Rates 2021 VA Compensation Rates
10% $167.29 $152.64 $144.14
20% $339.71 $301.74 $284.93
30% $512.26 $467.39 $441.35
40% $737.91 $673.28 $635.77
50% $1,050.45 $958.44 $905.04
60% $1,330.58 $1,214.03 $1,146.39
70% $1,676.83 $1,529.95 $1,444.71
80% $1,949.16 $1,778.43 $1,679.35
90% $2,190.38 $1,998.52 $1,887.18
100% $3,651.94 $3,332.06 $3,146.42

Is VA Disability Pay Tax-Free?

VA compensation is tax-free; however, additional sources of income may result in taxable income. Please consult your accountant or tax advisor.

How VA Disability Compensation is Determined

What will the VA COLA be for 2023?

VA disability compensation is determined by a rating schedule that requires that your condition meet certain medical criteria. The specific rating is based on the diagnostic code associated with your condition. The rating schedule is based on the VA’s assessment of how your condition is expected to affect your ability to work. In other words, it is based on a functional assessment of the impact of your condition on your ability to work. In some cases, the VA will assign a 0% rating if you have a service-connected condition that does not produce any symptoms or functional restrictions.

In some cases, you may qualify for a “non-schedular” rating if the effect of your condition is not adequately addressed by the schedular rating. For example, a skin condition that affects only 5% of your body surface may only produce a 10% rating under the schedule. However, if that 10% is limited to your hands and thereby precludes the use of your hands, the VA should assign an extra-schedular rating that accounts for your inability to use your hands for work activity.

How to Increase VA Disability Ratings

VA compensation ratings may always be increased if the condition has grown worse over time. There must be medical evidence to support an increased rating. A claim for an increased rating is a new claim. The effective date for an increased rating is the date the claim is made. Do not delay if your rated condition has gotten worse. If your claim for an increased rating is denied, seek legal assistance to determine whether an appeal is justified. Your lawyer can assist you with a medical opinion from a non-VA doctor to support your claim.

You should carefully consider whether any of your medical conditions may be related to service. If your condition pre-existed entry into service, was that condition aggravated by service? If your condition was not diagnosed while in service, did you exhibit symptoms of that condition while in service or within a year after discharge? Is your condition due to or made worse because of an existing service-connected condition? Current research reveals that conditions such as PTSD may cause sleep apnea. Presumptive service connection is available for a wide number of exposures, such as Agent Orange and Gulf War exposures from burn pits. Seek legal counsel to address these issues.

How Do I Apply for VA Disability Compensation Benefits?

What will the VA COLA be for 2023?

You can apply online through eBeneifts on the VA website (va.gov), by visiting any VA Regional Office, through the Florida or other state VA office, through veterans’ service organizations (American Legion, AmVets, VFW, etc.), or through a qualified attorney licensed to practice before the VA.

How to Appeal a VA Disability Claim

You have one year within which to appeal an initial denial of benefits.  Shortened time periods are involved if the VA has issued a subsequent decision upon a prior appeal. There are several types of appeal available. Your attorney can guide your decision to appeal and which appeal option is best for you. Don’t wait until the last minute to seek legal counsel. Your attorney needs time to review the evidence and consider the best option for you.

The Bottom Line

Claims for VA disability compensation can be complicated, complex, and time-consuming. Without a strong background in VA law and practice, you may be overwhelmed. Contact us online or call us at 727-321-4993 to get immediate legal assistance.