SAN ANTONIO – A record pay increase could be coming for veterans in 2023.
The Department of Veterans Affairs has an annual cost-of-living pay adjustment, which is usually tied to the Social Security change rate, according to Military.com.
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Social Security rate adjustments are expected to be announced in October, with early estimates anticipating an 8.7% rise for next year based on inflation.
If that estimate stands, it would be the highest cost of living adjustment since 1981.
The 2022 cost-of-living adjustment was 5.9%.
“For a veteran receiving about $1,500 in monthly payouts, that level of increase would mean about $130 extra each month,” according to the Military Times.
Veteran benefits don’t automatically reflect increases based on Social Security percentages — it’s also tied to legislation.
However, the House passed legislation that would link the Social Security percentage increase to the cost-of-living increase for military veterans on Sept. 15. The Senate followed suit last week.
“We have a responsibility to ensure veterans’ benefits are keeping pace with a changing economy,” said Senate Veterans’ Affairs Committee Chairman Jon Tester. “That’s why I’m glad the Senate unanimously passed this bipartisan bill that’ll do just that—providing veterans and their families from every corner of the country with the support they need and earned.”
The cost-of-living adjustment for Social Security benefits is determined by the Social Security Administration.
Pay adjustments for veterans go into effect on Dec. 1.