The Playbook › Step 7 of 7: Raise and protect your rating
Yes. For the great majority of veterans, working has no effect on VA disability compensation. You can hold a full-time job, earn any amount, and still receive every dollar of your monthly payment, including at a 100% schedular rating.
There is one real exception, TDIU, and one area that needs care, which is mental health ratings.
The short version
- VA disability compensation is not income-based. There is no earnings limit on schedular ratings.
- A veteran rated 100% schedular can work full time.
- TDIU is different. It is granted because you cannot work, so earnings above the poverty threshold put it at risk.
- Ratings are based on symptoms and function, not on your job title or salary.
- VA disability compensation is tax free and does not reduce your wages.
On this page
Why working does not affect a schedular rating
Compensation is meant to make up for the average loss of earning capacity a disability causes across the working population. It is not a measure of what you personally earn. A veteran with a 60% rating for a back condition is paid for that rating whether they are unemployed, working part time, or running a company.
VA does not ask schedular-rated veterans to report income, and getting a raise or a new job is not a reason to reduce a rating.
The exception: TDIU
TDIU pays at the 100% rate specifically because your service-connected conditions prevent substantially gainful employment. So employment matters.
| Situation on TDIU | Effect |
|---|---|
| Not working | No issue |
| Marginal employment: earnings below the federal poverty threshold for one person | Allowed |
| Work in a protected environment, such as a family business that makes special allowances | Can be treated as marginal even above the threshold |
| Substantially gainful employment sustained for 12 months or more | VA can propose to end TDIU |
| Brief attempt at work that fails | Generally does not end TDIU |
VA can check earnings through federal wage records. If you are on TDIU and start working, be straightforward with VA about it. If TDIU ends, your payment goes back to your underlying combined rating. It does not drop to zero.
The area that needs care: mental health ratings
Mental health conditions are rated on occupational and social impairment. The 100% criteria describe total occupational and social impairment. Holding steady full-time work does not automatically disqualify you from a high mental health rating, but it is evidence VA will weigh.
What matters is the full picture. A veteran may be employed and still be struggling badly: frequent absences, conflict with coworkers, working alone by accommodation, a supportive employer overlooking problems. If that is your situation, make sure your treatment records and statements say so. See PTSD ratings.
Common worries about working on VA disability
Will VA cut my rating if I get a job? Not for a schedular rating. Reductions are based on medical evidence of improvement, not employment. See rating reductions.
Will my employer find out? VA does not notify employers. Whether to disclose a disability is your decision.
Does my VA pay reduce my salary or the other way around? No.
What about Social Security Disability Insurance? SSDI has its own strict work rules. You can receive SSDI and VA disability compensation together, and VA compensation does not reduce SSDI.
What about VA pension? VA pension is a separate, needs-based benefit with income and net worth limits. Do not confuse it with VA disability compensation.
Federal jobs and hiring preference
A service-connected rating can help your career rather than hurt it:
- Veterans’ preference adds points in federal hiring. A rating of 10% or more gives a 10-point preference.
- Veterans rated 30% or more can be hired into federal jobs through a non-competitive authority.
- Many states offer their own hiring preferences.
Help getting back to work
Veteran Readiness and Employment, also known as VR&E or Chapter 31, helps veterans with service-connected disabilities train for and find suitable work. It can pay for education, provide a monthly subsistence allowance, and fund workplace accommodations. A rating of 10% or more with an employment barrier is generally the starting point for eligibility. Using it does not reduce your VA disability compensation. See our VR&E guide for who qualifies and how to apply.
If you are on TDIU and want to try working
- Understand the poverty threshold for the current year.
- Consider starting part time.
- Keep records of hours, earnings, and any accommodations.
- Talk to an accredited representative first. See who can help.
If your conditions have worsened to the point that you qualify for 100% on the schedule, that rating has no work limits at all. See filing for an increase.
Free printable checklist. Everything to gather before you file, what to bring to your C&P exam, and what to check in your decision, on two pages.
Last reviewed October 2026. This guide is general educational information, not legal or medical advice, and this site is not affiliated with the Department of Veterans Affairs. Rules and rates change. Confirm details on VA.gov or with an accredited representative. See our disclaimer and editorial policy.