Military Disability Pay Rates for 2021 – The Experts Guide (with 1.3% COLA Bump)

FOR THE VETERAN OF THE VETERAN SHARE OF THE DAY

Military disability pay rates for 2021 were released on October 13, 2020, with the implementation of the Social Security Administration’s announcement of a 1.3% Cost of Living Adjustment (COLA) for 2021.

On October 20, 2020, the President signed into law H.R. 6168, the Veterans’ Compensation Cost-of-Living Adjustment Act of 2020, which authorized a 1.3% COLA adjustment for Veterans receiving military disability pay, VA disability compensation, clothing allowance, and survivors receiving Dependency Indemnity Compensation (DIC) payments.

This bill became Public Law 116-178, and increases the amount paid to disabled military veterans and their survivors by 1.3% effective December 2020, and will be reflected in all January 2021 military disability pay.

The Department of Veterans Affairs (VA) adjusts veteran’s monthly disability compensation amounts based on the yearly change in the cost of living as determined by the Social Security Administration (final COLA adjustment of 1.3% in 2021 was based on the Bureau of Labor Statistics (BLS) report of September 2020 inflation data).

Now I’ve probably got you wondering, “Will military veteran’s get a military disability pay increase in 2021?”

Yes! Military veterans will get a 1.3% military disability pay rates increase for CY 2021.

The 1.3% COLA boost was lower than normal due to low inflation and the impact of the COVID-19 pandemic on the economy.

You might also be interested in the following high-value Blog posts:

VA Disability Pay Dates 2021
VA Special Monthly Compensation Pay Rates
Free VA Disability Calculator
5 Simple Ways to Increase Your VA Disability Rating

2021 COLA Increase is 1.3% for Disabled Military Veterans

The new 2021 military disability pay rates will be effective December 1, 2020, and disabled military veterans will see the new 1.3% COLA increase on their January 1, 2021 VA compensation payment.

Disabled military veterans with a current VA disability rating of 10% of higher will receive a 1.3% increase in their VA disability pay rate for calendar year 2021.

For example, if you were previously getting $1,000 per month tax-free, a 1.3% VA pay increase is $13, so a veteran’s military disability pay in 2021 will go up to $1,013 per month.

Did you know 80% of disability military veterans (8/10 of you reading this right now…) are being shorted nearly $1,000/month tax-free on your 2021 military disability pay rates?

But, I’ve got some good news, just click the link below to watch my FREE training to learn how to increase your VA disability rating (if deserved by law).

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