Understanding Potential Pay Raises for Disabled Veterans: What You Need to Know

How Disabled Veterans Can Increase Their Monthly Compensation

For disabled veterans receiving monthly compensation from the Department of Veterans Affairs (VA), the question of whether a "pay raise" is possible is a common and important one. While the term "raise" might imply a performance-based increase, in the context of VA benefits, it refers to an increase in the monthly tax-free payment. The short answer is yes, it is possible for a disabled veteran's compensation to increase. This increase can happen in several distinct ways, each with its own process and requirements.

Understanding these pathways is crucial for veterans to ensure their compensation accurately reflects their current level of disability and financial needs. Let's explore the primary methods through which a veteran's disability pay can go up.

1. Annual Cost-of-Living Adjustments (COLA)

The most common and automatic way for nearly all disabled veterans to see a pay increase is through the annual Cost-of-Living Adjustment, or COLA. This is not something a veteran needs to apply for; it happens automatically. The COLA is designed to counteract the effects of inflation, ensuring that the purchasing power of VA benefits doesn't decrease over time. The percentage increase is tied directly to the same adjustment made for Social Security benefits.

Each year, the Social Security Administration calculates the COLA based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If inflation has caused the cost of goods and services to rise, a COLA is implemented. The VA then applies this same percentage increase to disability compensation rates, which typically takes effect on December 1st and is reflected in the payment received at the end of that month or the beginning of January. While this is an essential and welcome increase, it's important to view it as an adjustment for inflation rather than a raise in the traditional sense.

2. Filing for an Increased Rating on an Existing Condition

One of the most direct ways a veteran can actively pursue a pay increase is by filing for an increased rating for a service-connected condition that has worsened. The disability rating assigned by the VA is not necessarily permanent and is intended to reflect the current severity of a condition. If a veteran's back pain, PTSD, hearing loss, or any other service-connected disability has become more severe since the last rating decision, they have the right to file a new claim for an increase.

To be successful, this claim must be supported by new and relevant medical evidence. This can include doctor's visit notes, specialist reports, medical test results, and statements from the veteran (a "buddy statement") describing how the symptoms have intensified and impacted their daily life and ability to work. The VA will review this new evidence, often schedule a new Compensation and Pension (C&P) exam, and determine if the worsened condition warrants a higher disability rating, which would result in a higher monthly payment.

3. Filing a Claim for a New Disability (Primary Service Connection)

Veterans can develop new health conditions long after leaving military service. If a veteran believes a new physical or mental health issue is a direct result of their time in service, they can file a new claim for service connection. This could be a condition that wasn't present or diagnosed at the time of discharge but can be linked to a specific event, injury, or exposure during their service.

For example, a veteran who was exposed to burn pits might develop a respiratory condition years later. By providing evidence linking the condition to their in-service exposure, they could get it service-connected. If approved, the VA will assign a disability rating for this new condition, which is then combined with any existing ratings. This "combined rating" could increase, leading to a higher monthly compensation amount.

4. Filing a Claim for a Secondary Service Connection

Sometimes, a service-connected disability can cause or aggravate another, separate health condition. This new condition is known as a "secondary" disability. Veterans can receive compensation for these secondary conditions, and getting one approved is a common way to increase one's overall disability rating and pay.

A classic example is a veteran with a service-connected knee injury who develops arthritis in that same knee. Another example could be a veteran who develops depression as a result of living with chronic pain from a service-connected back injury. To win a claim for a secondary condition, the veteran must provide a medical "nexus" or link. This usually comes in the form of a doctor's opinion stating that the secondary condition is "at least as likely as not" caused or worsened by the primary service-connected disability. If approved, the rating for the secondary condition is combined with the primary ratings, potentially pushing the veteran into a higher pay bracket.

5. Total Disability Individual Unemployability (TDIU)

For veterans whose service-connected disabilities prevent them from securing and maintaining substantially gainful employment, Total Disability based on Individual Unemployability (TDIU) is a critical benefit. TDIU allows a veteran to be paid at the 100% disability rate, even if their combined rating is less than 100%.

To be eligible, a veteran must typically have at least one service-connected disability rated at 60% or more, or two or more service-connected disabilities with a combined rating of 70% or more (with one rated at least at 40%). The key is proving that the service-connected disabilities, not age or other factors, are the reason for unemployment. If granted, TDIU can result in a significant pay increase, moving a veteran from a 70% or 80% pay rate, for example, up to the maximum 100% rate.

6. Adding or Removing Dependents

Another factor that directly impacts monthly compensation is the number of eligible dependents. Veterans with a combined disability rating of 30% or higher are eligible for additional monthly compensation for a spouse, dependent children, and/or dependent parents. This is not a change in the disability rating itself, but it does increase the total amount of money received each month.

Veterans should be diligent about updating the VA with any life changes. Getting married, having a child, or having a parent become dependent on you for financial support are all events that could trigger an increase in your monthly payment. Conversely, it is also the veteran's responsibility to inform the VA when a dependent is no longer eligible (e.g., a child turning 18 or a divorce), as failing to do so can result in an overpayment that the veteran will have to pay back.