The Department of Veterans Affairs (VA) pays service-connected disability compensation to veterans who are at least 10% disabled due to an injury or disease incurred or aggravated during active military service. The monthly amount is tax free and the amount paid depends on the degree, or percentage, of disability. The disability can be due to a physical or mental condition. The injury does not have to be due to a military exercise. For example, if you hurt your knee playing basketball while on active duty, any disability due to that injury counts. Generally, employment is not a bar to entitlement to service-connected disability compensation. Substantial gainful employment may be a bar, however, to some of the higher levels of compensation based on unemployability, such as total disability based on individual unemployability (known as TDIU) or a 100% rating based on a mental disorder.
If you are already receiving a monthly payment due to a service-connected disability and your condition gets worse you can pursue an enhanced rating. The higher the rating, the more money you receive per month.
If a veteran’s rating is 30% or more the veteran is entitled to receive an additional amount of monthly compensation based on the existence of qualifying family members.
Generally, a veteran is limited to a monthly monetary payment equal to the 100% rate. In cases where a veteran has suffered certain sever disabilities, however, the veteran may be entitled to special monthly compensation (SMC) which can provide compensation payments much greater than the 100% rate.
This is just a broad overview of just some of the benefits offered to veterans.