Monetary benefits known as disability compensation are paid to veterans who are disabled by injury or disease incurred or aggravated during active military service. The service of the veteran must have been terminated through separation or discharged under conditions that were other than dishonorable.

Disability compensation varies with the number of dependents, and is paid monthly. The payment of military retirement pay and separation known as SSB and VSI (Special Separation Benefits and Voluntary Separation Incentives) also affects the amounts of VA compensation paid.