Veterans receiving monthly VA benefits will notice a modest increase in their September checks, reflecting the 2.5% cost-of-living adjustment (COLA) that took effect at the beginning of 2025. The adjustment is based on changes in the Consumer Price Index (CPI) and follows the same formula used for Social Security payments.
According to a report from Marca, this COLA applies across various VA programs, including disability compensation and Dependency and Indemnity Compensation (DIC). The increase aims to maintain benefit value amid ongoing price fluctuations. While the change does not represent a major shift, it ensures payments remain aligned with inflation trends.
September 2025 Payments Scheduled for October 1
Monthly VA benefits are typically issued on the first business day of the following month. For September 2025, the official payment date is Wednesday, October 1, unless affected by a holiday or weekend. This timing applies to all VA-administered programs, ensuring consistent support for eligible recipients.
Amount of Increase by Disability Rating
The 2.5% COLA increase translates into different monthly increases depending on a veteran’s disability rating and status:
- Veterans rated at 10% disability receive about $4.28 more per month
- Those with a 100% disability rating and no dependents see an increase of approximately $93.45
- For recipients of Dependency and Indemnity Compensation (DIC), VA pensions, or Special Monthly Compensation (SMC), the adjustment also results in proportional increases
These changes ensure that key VA benefits remain responsive to economic conditions, even if the adjustments appear modest on a monthly basis.
how this year’s adjustment compares historically
This year’s 2.5% increase is lower than the 3.2% COLA in 2024 and significantly below the 8.7% spike in 2022, which was the largest increase in four decades. The Department of Labor calculates these annual adjustments based on the Consumer Price Index (CPI), which tracks the average price of essential goods and services in the economy.
Although 2.5% may seem minor, the context reveals a longer-term trend of aligning benefits with changing consumer prices. Even small monthly gains can have a meaningful annual impact.
Cost-Of-Living Pressures Persist Despite Slowing Inflation
According to the Bureau of Labor Statistics, inflation has slowed in 2025, but costs remain elevated for essentials like rent and medical care. The COLA is intended to help maintain purchasing power as these expenses continue to outpace income growth for many.
Many veterans and their families rely on their VA benefits to help cover essential expenses like food, housing and utilities – said Randy Reese, DAV Washington Headquarters Executive Director, in an interview with Military.com.
The cost-of-living adjustment is intended to help counteract the impact inflation has on veterans benefits.
Why Small Increases Still Matter
A few dollars each month may not drastically change a veteran’s financial situation, but over a full year, the difference becomes more meaningful—especially for those on fixed incomes. The 2.5% adjustment helps stabilize budgeting for necessities and prevents erosion of value over time.
Veterans who rely on disability compensation, DIC, VA pensions, or SMC depend on predictable payments that reflect real-world costs. In this light, even modest adjustments serve as a safeguard against financial instability.
