The cost-of-living adjustment (COLA) for veterans with service-connected disabilities is a yearly increase in compensation that is designed to help offset the rising cost of living. The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is a measure of the average change in prices for goods and services purchased by wage earners and clerical workers. The COLA is announced each year by the Department of Veterans Affairs (VA) and is effective as of December 1.
The COLA is an important benefit for veterans with service-connected disabilities because it helps to ensure that they can maintain their standard of living despite the rising cost of living. The COLA has also been shown to have a positive impact on the health and well-being of veterans with service-connected disabilities.