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Friday, December 9, 2016

2017 Rate Increase for VA Compensation

Every few years, Congress updates the rates given for VA Disability and Special Monthly Compensation based on the Cost of Living Adjustments (COLA) that reflect the rate of inflation throughout the nation.

The last COLA adjustment was 1.7% in December 2014. This year’s increase, however, is significantly lower at only 0.3%.

Over the last 10 years, the average COLA adjustment was 1.7% per year.  This average has decreased from the previous decade’s 2.6% per year, and is nowhere near the highest COLA average of 7.3% per year during the decade from 1975-1984. This shows that the country’s rate of inflation has significantly slowed over the past 40 years.

This year’s increased rates went into effect December 1, 2016. The new amounts can be found on our VA Disability Chart and Special Monthly Compensation Rates pages. 

The increases are automatic, and you should have already seen them in your December disability checks. If not, contact your local VA office.