This Is the 2020 Veteran Disability Pay Raise

November 27, 2019

This article by Jim Absher first appeared on Military.com, the premier resource for the military and veteran community.

Standing by for that annual cost of living increase for your Department of Veterans Affairs disability pay? Wait no more. Officials have just announced exactly how much disabled veterans can expect those monthly disability payments to go up for 2020.

Disability compensation rates are going up 1.6% for 2020. So what does that mean for you? More cash.

Here’s Your Annual Veteran Disability Payment Increase

An increase of 1.6% does not seem like much, but it does add up over time. For example, a veteran who has a disability rated at 10% from the VA will see their monthly tax-free payment increase from $140.05 to $142.29, an increase of $26.88 annually.

On the other end of the spectrum, a veteran rated as 100% disabled with two dependents will see their payment go from $3,437.10 to $3,492.09, or a $659.88 annual change.

For the full listing of all disability compensation rates for 2020 check out our Disability Compensation Rates page.

How Is Veteran COLA Decided?

Disability compensation rate increases, like those related to most other federal benefits, are tied to the Consumer Price Index (CPI), which measures a broad sampling of the cost of consumer goods and expenses. That data is used to inform the annual Cost of Living Adjustment (COLA), helping to calculate compensation increases for veterans and others.

COLA changes affect about one in every five Americans, including Social Security recipients, disabled veterans, federal retirees and retired military members.