As we wrap up 2022, brand-new ventures will take effect in 2023 for veterans receiving compensation benefits. Beginning on January 1, 2023, the monthly payments approved by Veterans Affairs will see an 8.7% increase. See Cost-of-Living Adjustment (COLA) Information for 2023 through this. See Cost-of-Living Adjustment (COLA) Information for 2023 through this link.
But what do the 2023 VA disability rates mean for you? If you’re a veteran—or supporting one—this blog is a helpful resource for understanding the latest updates. Just4Veterans is dedicated to coaching veterans through the VA claims process, offering tools like our VA rating calculator to help you estimate compensation based on the 2023 VA disability rates and compensation updates. But what specific benefits are impacted by this year’s increase?
Pay increase for Veterans in receiving VA compensation
The increase has an effect on the updated VA disability rating for veterans who were injured while serving in the military or by any other form of exposure that may have exacerbated the condition. It is a tax-free payment exclusive to veterans.
This increased VA disability pay is solely dependent on your VA disability rating. It is important to note that veterans with ratings of 10%–20% do not receive extra compensation for dependents.
Here is the official and final figure for veterans with no children:
VA Disability Rating of 30% – 60% without children
| Dependent Status | 30% | 40% | 50% | 60% |
| Veteran Alone | $508.05 | $731.86 | $1,041.82 | $1,319.65 |
| Veteran with Spouse Only | $568.05 | $811.86 | $1,141.83 | $1,440.65 |
| Veteran with Spouse & One Parent | $616.05 | $875.86 | $1,222.82 | $1,537.65 |
| Veteran with Spouse and Two Parents | $664.05 | $939.86 | $1,303.82 | $1,634.65 |
| Veteran with One Parent | $556.05 | $795.86 | $1,122.82 | $1,416.65 |
| Veteran with Two Parents | $604.05 | $859.86 | $1,203.82 | $1,513.65 |
| Additional for A/A spouse | $56.00 | $74.00 | $93.00 | $111.00 |
VA Disability Rating of 70% – 100% without children
| Dependent Status | 70% | 80% | 90% | 100% |
| Veteran Alone | $1,663.06 | $1,933.15 | $2,172.39 | $3,621.95 |
| Veteran with Spouse Only | $1,804.06 | $2,094.15 | $2,353.39 | $3,823.89 |
| Veteran with Spouse and One Parent | $1,917.06 | $2,223.15 | $2,498.39 | $3,985.96 |
| Veteran with Spouse and Two Parents | $2,030.06 | $2,353.15 | $2,643.39 | $4,148.03 |
| Veteran with One Parent | $1,776.06 | $2,062.15 | $2,317.39 | $3,784.02 |
| Veteran with Two Parents | $1,889.06 | $2,191.15 | $2,462.39 | $3,946.09 |
| Additional for A/A spouse | $130.00 | $148.00 | $167.00 | $185.21 |
Here is the official and final figure for veterans with children:
VA Disability Rating of 30% – 60% with children
| Dependent Status | 30% | 40% | 50% | 60% |
| Veteran with Child OnlyVeteran with Spouse and Child | $548.05 | $785.86 | $1,108.82 | $1,400.65 |
| Veteran with Spouse and Child | $612.05 | $870.86 | $1,215.82 | $1,528.65 |
| Veteran with Spouse, One Parent and Child | $660.05 | $934.86 | $1,296.82 | $1,625.65 |
| Veteran with Spouse, Two Parents and Child | $708.05 | $998.86 | $1,377.82 | $1,722.65 |
| Veteran with One Parent and Child | $596.05 | $849.86 | $1,189.82 | $1,497.65 |
| Veteran with Two Parents and Child | $644.05 | $913.86 | $1,270.82 | $1,594.65 |
| Add for Each Additional Child Under Age 18 | $30.00 | $40.00 | $50.00 | $60.00 |
| Each Additional Schoolchild Over Age 18 | $97.00 | $129.00 | $162.00 | $194.00 |
| Additional for A/A spouse | $56.00 | $74.00 | $93.00 | $111.00 |
VA Disability Rating of 70% – 100% with children
| Dependent Status | 70% | 80% | 90% | 100% |
| Veteran with one Child (no spouse and no parents) | $1,757.06 | $2,041.15 | $2,293.39 | $3,757.00 |
| Veteran with Spouse and Child (no parents) | $1,907.06 | $2,212.15 | $2,486.39 | $3,971.78 |
| Veteran with Spouse, One Parent and One Child | $2,020.06 | $2,341.15 | $2,631.39 | $4,133.85 |
| Veteran with Spouse, Two Parents and Child | $2,133.06 | $2,470.15 | $2,776.39 | $4,295.92 |
| Veteran with One Parent and Child | $1,870.06 | $2,170.15 | $2,438.39 | $3,919.07 |
| Veteran with Two Parents and Child | $1,983.06 | $2,299.15 | $2,583.39 | $4,081.14 |
| Add for Each Additional Child Under Age 18 | $70.00 | $80.00 | $90.00 | $100.34 |
| Each Additional Schoolchild Over Age 18 | $226.00 | $259.00 | $291.00 | $324.12 |
| Additional for A/A spouse | $130.00 | $148.00 | $167.00 | $185.21 |
Beneficiaries receiving Dependency and Indemnity Compensation (DIC) will also experience the increase. DICs are also tax-free for the surviving spouse, children, or parents of a service member who lost their life in the line of duty.
Benefit payments for recipients of special benefit allowances, such as automobile allowance, clothing allowance, and Medal of Honor pension, will be increased as well.
Eligibility for additional benefits for veterans is also possible if they have a large number of dependents, have lost a limb or suffered a severe injury, or have a disabled spouse.
It should be noted that this benefit is temporary and may be subject to change. On a broader scale, the VA reserves the right to change its rating schedule at any time. Still, it may also reexamine your individual claim to determine whether your disability has improved or worsened, affecting your benefit amount. In the latter case, you should initiate the review yourself to ensure they receive a higher benefit for a more severe disability.
SSA increases COLA adjustments
The increase in VA disability rates in 2023 is based on the Social Security Administration’s (SSA) Cost of Living Adjustment, rising inflation, and the increasing prices of goods, gas, and other commodities. SSA specifies a formula to finalize a decision for each COLA.
The COLA’s purpose is to protect Social Security and Supplemental Security Income purchasing power against inflation.
About COLA
A COLA increases a person’s Social Security retirement benefit by the product of the COLA and the amount of the benefit. The precise computation, however, is more challenging.
Each Social Security benefit is based on a “primary insurance amount,” or PIA, which is directly tied to the primary beneficiary’s earnings through the benefit formula.
COLAs are based on increases in the Consumer Price Index for urban wage earners and clerical employees (CPI-W). The Bureau of Labor Statistics then computes monthly CPI-Ws.
Getting help with Claims and Appeals
While veterans can seek assistance from an accredited attorney, claims agent, or Veterans Service Officer for claims or appeals, Just4Veterans provides educational support and coaching to help you navigate the claims process confidently.
You’ve served with honor—now let us help you understand the benefits you’ve earned. For more information, feel free to email us at [email protected] or book a strategy call with one of our veteran coaches.