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. 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. 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.
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