Veterans Disability Benefits to increase by 8.7% in 2023

What Is COLA?

COLA is an annual adjustment to benefits that account for increases in the cost of living as measured by the CPI-W. The CPI-W measures changes in prices for Urban Wage Earners and Clerical Workers and is calculated by the Bureau of Labor Statistics. The VA uses the CPI-W to determine how much to increase benefits each year. 

The COLA increase takes effect on December 1st each year and is based on the CPI-W for the third quarter of the previous year (July, August, and September). For example, the 2020 COLA increase was based on the CPI-W for July, August, and September 2019. 

How Does COLA Affect Veterans? 

The COLA increase affects all veterans receiving disability benefits from the VA, as well as survivors and dependents receiving Dependency and Indemnity Compensation (DIC) or Parents' Dependency and Indemnity Compensation (DE&I). 

The COLA increase applies to service-connected disabilities as well as nonservice-connected pension benefits. It also applies to all levels of disability rating, from 10% to 100%. 

Conclusion: 

Veterans who receive disability benefits from the VA will see a cost-of-living adjustment (COLA) of 8.7% in 2023. This is good news for disabled veterans, as their benefits will keep pace with inflation. The COLA increase takes effect on December 1st each year and is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). All veterans receiving disability benefits from the VA are affected by the COLA increase, as well as survivors and dependents receiving DIC or DE&I.