Here is the 2025 salary increase for disabled veterans and military retirees

Military retirees and veterans will receive a 2.5% increase in their monthly paychecks thanks to the 2025 Annual Cost of Living Adjustment (COLA) tied to inflation.

While 2.5% may seem low compared to recent years' COLA adjustments of 3.2% (2024), 8.7% (2023), and 5.9% (2022), it is still close to average from about 2.6% of the last decade.

The Social Security Administration announced the COLA increase on Thursday. Most government disability and pension payments are required by law to increase by the same amount each year to reflect the rate of inflation.

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The Department of Labor determines the annual COLA by measuring the Consumer Price Index (CPI), a measure of a broad sample of the cost of consumer goods and spending. The CPI is compared to the previous year; if there is an increase, there is a COLA. If there is no increase, there is no COLA and the benefits remain the same – they do not decrease.

Military pensioners

For 2025, retired military members will receive a $25 increase for every $1,000 of military retirement benefits they receive each month.

For retirees who entered military service on or after August 1, 1986 and elected the Career Status Bonus (CSB/Redux Retirement Plan), all COLA increases will be reduced by one percentage point, giving them a smaller increase of $15 per $1,000 received in 2025.

Survivors who receive payments from the Survivor Benefit Plan will have their payments increased by the same amount as retirees.

Military members who retired in 2024 will receive a slightly reduced COLA in 2025. Their COLA is prorated based on the quarter they retired (January-March, April-June, etc.). The prorated amount may also be adjusted depending on when a member entered service and which retirement plan they chose.

War disabled people and survivors

War disabled people will also receive an increase in their benefit payments next year. VA disability checks will increase by approximately $4.28 per month for those with a 10% rating and by $93.45 per month for those with a 100% rating who have no dependents.

Here are the VA disability compensation rates for 2025.

Dependency and Compensation Compensation (DIC) benefits for surviving spouses of disabled veterans will also increase in 2025. Here are the VA dependency and compensation claims rates for 2025.

Other Federal Retirees and Beneficiaries

Military retirees and VA beneficiaries aren't the only ones benefiting from the COLA increase. Public sector retirees and Social Security recipients will also receive a 2.5% increase in their monthly checks.

For Social Security recipients, the increase means about $50 more per month for the average beneficiary, according to the administration.

Related: Here is the 2024 salary increase for vets and military retirees

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