Millions of veterans receiving disability compensation are in line for a 3.6 percent increase in their monthly benefits in 2027, following the latest cost-of-living adjustment (COLA) announcement yesterday.
The Social Security Administration (SSA) announced the 3.6 percent COLA on Wednesday. This is an increase from the 2.8 percent adjustment implemented for 2026 and the largest annual increase since 2023. The increase will apply to more than 6 million veterans nationwide who currently get Veterans Affairs (VA) disability compensation.
VA disability compensation adjustments are tied to Social Security's COLA, although the corresponding increase for veterans still requires congressional approval. The VA has also yet to publish its official 2027 payment tables.
Here is everything veterans need to know about the increase, including how much their benefits could rise and when the new rates are expected to take effect.
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What Is VA Disability Compensation?
VA disability compensation provides tax-free monthly payments to eligible veterans who have illnesses or injuries that are connected to their military service. Veterans qualify if they developed a physical or mental health condition during their service time; experienced an aggravation of an existing condition; or developed a condition after leaving the military that is linked to their service.
Qualifying conditions cover both physical and mental illnesses. These include chronic back pain, hearing loss, traumatic brain injuries, post-traumatic stress disorder (PTSD), respiratory illnesses and certain cancers associated with exposure to hazardous substances.
The amount a veteran can get depends on a disability rating assigned by the VA, ranging from 0 to 100 percent in increments of 10. A rating depends on the condition and its effect on overall health and ability to function, and is determined using medical evidence, examination results and other relevant records.
Veterans rated at 0 percent generally do not receive monthly disability compensation, although they may qualify for other VA benefits.
How Much Will VA Disability Benefits Increase in 2027?
The 3.6 percent COLA is expected to raise standard monthly VA disability payments across every compensable rating, from 10 percent to 100 percent.
For example, a veteran with a 50 percent disability rating and no dependents currently receives $1,132.90 per month. Applying the 2027 adjustment would increase that payment to approximately $1,173.68, an additional $40.78. Meanwhile, a veteran with a 100 percent disability rating and no dependents could see their monthly compensation rise from $3,938.58 to $4,080.37, an increase of $141.79, or approximately $1,701 over the year.
Veterans with dependents may receive higher payments. Those with disability ratings of at least 30 percent can qualify for additional compensation if they have a dependent spouse, children or parents. Veterans rated at 10 or 20 percent receive the same standard compensation regardless of their number of dependents.
Some veterans with severe disabilities may also qualify for Special Monthly Compensation, which can boost above the standard disability compensation rates.
How Is the VA COLA Calculated?
VA disability compensation increases follow the annual COLA determined by the Social Security Administration. The adjustment is intended to help federal benefits maintain their purchasing power as the prices of everyday goods and services rise.
To calculate the COLA, the SSA uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W); this is a measure of inflation published by the Bureau of Labor Statistics. The agency compares the average CPI-W reading from July, August and September, with the corresponding three-month average from the previous year.
For the 2027 adjustment, the SSA calculated that the average CPI-W increased from 317.265 in the third quarter of 2025 to 328.746 in the third quarter of 2026, producing a 3.6 percent COLA after rounding.
The boost is approved by Congress. The Veterans' Compensation Cost-of-Living Adjustment Act of 2026, introduced in Congress earlier this year, will authorize the corresponding adjustment to VA disability compensation and certain survivor benefits.
As of October 15, the legislation had not been enacted. This means the projected 2027 VA rates still remain subject to congressional approval.
What Happens Next
The proposed 2027 VA disability compensation increase is scheduled to take effect on December 1, 2026, provided Congress approves the adjustment.
VA disability compensation is ordinarily paid at the beginning of the following month. This means the higher amount for December would normally be paid at the beginning of January 2027.
Veterans already receiving disability compensation will not need to submit a new claim to receive the COLA. Therefore, once implemented, the increase will be applied automatically to eligible payments.
The VA is expected to publish its final 2027 compensation tables after the adjustment receives the necessary approval.
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.
Contact Newsweek editors on this story: Ben Kelly and James Debens