The cost-of-living adjustment (COLA) for VA disability compensation in 2025 is a crucial measure that directly impacts the financial well-being of veterans with service-related disabilities. It is an annual adjustment intended to keep pace with rising living costs and ensure that veterans’ benefits retain their purchasing power over time.
The COLA increase for VA disability benefits is determined by the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from September of the previous year to September of the current year. The CPI-W measures the average change in prices for goods and services purchased by urban wage earners and clerical workers. If the CPI-W increases, the COLA will also increase, providing veterans with a higher level of compensation to offset the rising cost of living.