THE DIFFERENCE BETWEEN 100% FOR UNEMPLOYABILITY AND 100% DISABILITY RATING

In general, neither the 100% disability rating nor a total disability rating based on individual unemployability (TDIU), more commonly known as unemployability, is better than the other. The monthly compensation amount for unemployability is equivalent to a 100% disability rating. However, depending on a veteran’s circumstances, one option might be more beneficial to pursue.

What is the Difference?

The monthly compensation amount for unemployability is equal to that of a 100% disability rating. However, the qualifying criteria for unemployability are different than the requirements for a 100% rating.

An unemployability rating does not solely rely on the rating of a specific condition to grant benefits, it takes into account a veteran’s ability to work. Unemployability allows a veteran who is unable to work, to receive compensation at the 100% level even though their service-connected condition does not meet the 100% rating criteria. On the other hand, with a 100% disability rating, there are not the same restrictions on work activity as with unemployability. Therefore, if a veteran is rated 100% for their service-connected disability, and they are able to work, then they may do so.

Criteria To Qualify For A 100% VA Disability Rating:

There are two ways a veteran may be assigned a 100% disability rating:

1. The veteran must have one service-connected condition that meets the 100% rating criteria specified for that condition; or
2. The veteran must have multiple service-connected disabilities whose individual ratings combine to 100%.

Criteria To Qualify For Unemployability:

For veterans who do not have a 100% disability rating, but are disabled to the point that they are unable to obtain and maintain employment, unemployability provides another option to receive compensation.

To qualify for unemployability, a veteran must be unable to maintain substantially gainful employment as a result of their service-connected condition. Substantially gainful employment is employment that: (1) is not marginal, and (2) earns an annual salary that is above the federal poverty level. Additionally, a veteran must have:

• One service-connected disability ratable at 60% or more; or
• Two or more service-connected disabilities, with at least one disability ratable at 40% or more, with a combined rating of 70% or more.

If a veteran does not meet the rating requirements above, the veteran may qualify for extraschedular unemployability.

Why Would A Veteran Want a 100% Rating Versus Unemployability?

The biggest difference between unemployability and a 100% disability rating comes down to the work restriction imposed by unemployability.

There is a myth that a veteran cannot hold any employment while receiving unemployability, and while that is not the case, there are restrictions on what employment a veteran can hold.

The VA may grant unemployability when a veteran is unable to secure or maintain a substantially gainful occupation due to their service-connected disabilities. The courts have determined that “substantially gainful occupation” means employment where a veteran earns more than what the current federal poverty level is for an individual. For a single individual in 2025, the federal poverty level is $15,650. This means that an employed veteran who earns $15,650 or less per year can still be eligible for unemployability even though they are employed.

There are no restrictions on a veteran’s ability to work with a 100% disability rating.

However, with unemployability, the VA can and will revoke unemployability if a veteran becomes employable again.

Can the VA Change a 100% Disability Rating or Unemployability?

Both a 100% disability rating and unemployability have the potential to be determined permanent and total.

To assign a permanent 100% rating the VA must classify your condition as permanent and total (P&T). The VA classifies disabilities as P&T when it is believed that there is little to no chance of recovering or improving your condition. P&T ratings are protected from being reduced and may entitle you or your family to additional VA benefits. The VA can classify someone as P&T whether their benefits are via a schedular rating or unemployability.

If you need assistance with VA disability claim, we are here to help. Call Veterans Help Group at 855-855-8992 or contact us here.

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