Individual Unemployability (IU)

Individual Unemployability (IU) 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.

Eligibility:

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.

To apply, Servicemember needs to:

• Fill out and Submit VA Form 21-8940, “Veteran’s Application for Increased Compensation Based on Unemployability”
• Send application to your nearest VA Regional Office.