New Va Compensation Rates 2025. The 2025 va special monthly compensation (smc) rates have been officially updated with a 2.5% cost of living adjustment (cola), effective december 1, 2024, with payments starting on january 1, 2025. With the cola increase at 2.5%, the va has increased all 2025 disability pay rates by this amount, effective today, december 1 st, 2024.

All payments issued starting in january. Basic allowance for housing rates will increase by 5.4%, on average, in 2025, the defense department announced today.