For disabled veterans, the annual Cost-of-Living Adjustment (COLA) is a crucial update that directly impacts their disability compensation rates. As we look ahead to 2026, here is what you need to know about the current projected COLA increase.

Projected 2026 COLA: Around 2.7%

Based on the latest economic data and advocacy group forecasts, the 2026 COLA is currently projected to be around 2.7%. This figure is slightly higher than earlier estimates and reflects recent inflation trends.

Important Note: This is a projection and not the final confirmed amount. The official 2026 COLA will be finalized and announced by the Social Security Administration (SSA) on October 24, 2025, after they review the third-quarter inflation numbers (July, August, and September).

How This Impacts Your VA Benefits

  • Direct Increase: If confirmed, this percentage will directly raise your 2026 VA disability compensation rates if you have a service-connected rating of 10% or higher.
  • Effective Date: The updated pay rates will be officially effective on December 1, 2025.
  • First Payment: You will see this increase reflected in your January 1, 2026, VA disability payment.
  • Dependents: Veterans with a combined disability rating of 30% or higher may also qualify for additional compensation for dependents (spouse, children, or dependent parents) based on the new, higher rates.
  • Other Benefits: The same COLA percentage is also applied to other benefits like Dependency and Indemnity Compensation (DIC) and VA Pension.

How COLA is Determined

The COLA for VA disability benefits is tied by law to the COLA announced by the Social Security Administration (SSA). The SSA determines this adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks changes in the prices of consumer goods and services.

What to Keep in Mind

  • Final Figure is Imminent: The official announcement from the SSA is expected on October 24, 2025, which will lock in the exact rate.
  • No Action Required: The COLA is an automatic increase. You do not need to file any paperwork or contact the VA to receive this raise.
  • No Cuts to Benefits: Despite ongoing legislative discussions, there have been no cuts enacted to VA disability benefits. Veterans’ benefits continue to enjoy strong bipartisan support.

Stay tuned for the official COLA announcement on October 24, 2025, for the definitive figure, and check back for the updated 2026 VA Disability Pay Charts!