Projected 2023 VA Disability Pay Rates
October 10, 2022
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. 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%.
What Is the Cost-of-Living Adjustment (COLA)?
Every fiscal year, the Social Security Administration (SSA) sets an annual increase in benefits called a cost-of-living adjustment (COLA). 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). The CPI-W measures the average change in prices paid by urban consumers for a market basket of goods and services. The yearly COLA is effective as of December 1st and is the same percentage increase for VA disability pay rates.
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. Second, the COLA is used to determine the new pay rate for benefits. The new pay rate is effective on the first day of the month after the COLA is announced.
The COLA is an important part of ensuring that veterans’ disability benefits keep pace with the rising cost of living. It also helps to ensure that veterans can maintain their standard of living as prices increase.
VA Disability Pay Rates and COLA Rates Over Time
2020 COLA
In 2020, the 1.6% COLA increase led to a small jump in veterans’ disability benefits. The VA compensation rates for 2020 went into effect on December 1, 2019, and veterans received their adjusted benefits starting on December 31.
2021 COLA
In 2021, the COLA increase was 1.3%, slightly smaller than the previous year. This was due in large part to the COVID-19 pandemic and its impact on economies worldwide. However, veterans still saw a boost in their VA disability benefits starting on December 1, 2020.
2022 COLA
The 2022 COLA increase of 5.9% led to a substantial boost in benefits for veterans beginning on December 1, 2021. Veterans will continue to receive 2021 VA disability benefits until the 2022 COLA rates take effect in December.
Potential 2023 VA Disability Pay Rates
To calculate the estimate for 2023 VA disability payments, we must use the 2022 compensation rates as a baseline. However, since the Social Security Administration has not yet determined the 2023 cost-of-living adjustment (COLA), we can only determine tentative figures based on reliable projections.
The pay rates in the chart below reflect changes in the compensation over the years based on a single veteran with no dependents. Since the SSA has yet to release the 2023 COLA, the rates listed use the most recent COLA projection of 8.7%.
| Combined VA Rating | Estimated 2023 VA Disability Compensation Rates (8.7% Increase) | 2022 VA Disability Compensation Rates | 2021 VA Disability Compensation Rates |
| 10% | $165.91 | $152.64 | $144.14 |
| 20% | $327.99 | $301.74 | $284.93 |
| 30% | $508.05 | $467.39 | $441.35 |
| 40% | $731.86 | $673.28 | $635.77 |
| 50% | $1,041.82 | $958.44 | $905.04 |
| 60% | $1,319.65 | $1,214.03 | $1,146.39 |
| 70% | $1,663.06 | $1,529.95 | $1,444.71 |
| 80% | $1,933.15 | $1,778.43 | $1,679.35 |
| 90% | $2,172.39 | $1,998.52 | $1,887.18 |
| 100% | $3,621.95 | $3,332.06 | $3,146.42 |
To calculate the above rates, take the most recent 2023 COLA estimate of 9.6%, multiply it by each 2022 compensation rate, and add that number to the 2022 COLA rate. The adjusted figures are potential 2023 VA disability monthly payments.
Get Help Appealing Your VA Disability Claim!
If you’re a veteran or know of a veteran with a service-related condition or disability but have been denied compensation by Veterans Affairs, Legal Help For Veterans, PLLC is here to help. Our experienced and knowledgeable VA-Certified attorneys have decades of success representing veterans and their dependents before the Department of Veterans Affairs and the Court of Appeals for Veterans Claims (CAVC). Contact our office for a Free Claim Consultation at (800) 693-4800.
Claims Processing, Medical Issues / Disability, Uncategorized