After VA makes a rating decision granting disability compensation, the authorization process determines how much you will be paid and when payments begin. The payment amount is based on your combined disability rating percentage and the number of eligible dependents you have claimed. VA uses a standard compensation rate table that is updated annually. Payments are generally made on the first of each month for the previous month. Your first payment may take additional time to process after the rating decision because the authorization unit must verify your information, set up your payment account, and calculate any retroactive pay you are owed. Retroactive pay covers the period from your effective date to the date payments begin and can be a substantial lump sum. Make sure your direct deposit information is current in the VA system to avoid delays. If your rating changes, your payment amount will be adjusted. Increases take effect on the first of the month following the date of the new rating decision. Decreases have additional protections and notice requirements. If you add or remove dependents, your payment amount changes as well. Report dependent changes promptly to avoid overpayments that VA will later recoup. You can check your payment status and history through your VA online account.
Note: This article references sections of the VA's M21-1 Adjudication Procedures Manual. The VA periodically reorganizes the M21-1 and section numbers may have changed since this article was written. For the most current section references, visit the VA's public M21-1 Web Automated Reference Material System (WARMS).