What Is Individual Unemployability?

Individual Unemployability is a part of VA’s disability compensation program that allows VA to pay certain veterans compensation at the 100% rate, even though VA has not rated their service-connected disabilities at the total level.

What Is the Eligibility Criteria for Individual Unemployability?

A veteran must be unable to maintain substantially gainful employment as a result of his/her service-connected disabilities. Additionally, a veteran must have:

• One service-connected disability ratable at 60 percent or more, OR

• Two or more service-connected disabilities, at least one disability ratable at 40 percent or more with a combined rating of 70 percent or more.

How Do I Apply?

Submit VA Form 21-8940, Veteran’s Application for Increased Compensation Based on Unemployability to your nearest VA Regional Office. You can also call 1-800-827-1000 and request the form be mailed to you.

Can I Work?

Veterans who are in receipt of Individual Unemployability benefits may work as long as it is not considered substantially gainful employment. The employment must be considered marginal employment.

• Substantially gainful employment is defined as employment at which non-disabled individuals earn their livelihood with earnings comparable to the particular occupation in the community where the veteran resides.

• Marginal employment is generally deemed to exist when a veteran's earned income does not exceed the amount established by the U.S. Census Bureau as the poverty level for the veteran only. See the U.S. Census Bureau's poverty thresholds.

What If I Don’t Meet the Percentage Criteria?

Special consideration will be given for veterans when the following criteria is met:

• The veteran is considered unemployable due to a service-connected disability(ies) but fails to meet the minimum percentage standards, OR

• There is evidence of exceptional or unusual circumstances to impairment of earning capacity due to disabilities (for example, interference with employment or frequent periods of hospitalization)

Note: Veterans may have to complete an employment questionnaire once a year in order for VA to determine continued eligibility to Individual Unemployability.