TDIU is how a veteran can be paid at the 100% rate — $3,938.58 a month in 2026 — without actually holding a 100% combined rating. If your service-connected disabilities keep you from working, this is one of the most valuable benefits to understand.
What TDIU means
TDIU stands for Total Disability based on Individual Unemployability. It recognizes that two veterans with the same rating can be affected very differently: one might work fine at 70%, while another can't hold a job at all. If your disabilities prevent substantially gainful employment, the VA can pay you as if you were 100% disabled even though your schedular rating is lower.
Who qualifies (38 CFR 4.16)
There are two routes. Most veterans qualify under the schedular rules in 38 CFR §4.16(a):
- One service-connected disability rated at 60% or higher; or
- Two or more disabilities with at least one rated 40% or higher and a combined rating of 70% or higher.
This second path is often called the "70/40 rule." Related disabilities — from the same body system or a single injury — can sometimes be combined to meet the 60% single-disability threshold.
If you don't meet those numbers, you can still apply for extraschedular TDIU under §4.16(b). Your case is referred for special review based on why your specific disabilities make you unemployable.
The work and income limits
TDIU is about whether you can hold "substantially gainful employment." That generally means a job that pays above the federal poverty threshold for one person. You can still do marginal employment — odd jobs, very part-time work, or a protected job in a sheltered setting — without losing TDIU. But earning above the poverty line in regular competitive work can disqualify you.
How to apply
You file VA Form 21-8940 (Application for Increased Compensation Based on Unemployability), usually with an employer statement (VA Form 21-4192) and medical evidence linking your service-connected conditions to your inability to work. TDIU can also be raised as part of an existing claim or appeal — you don't always have to file it separately.
Back pay and effective dates
When TDIU is granted, you receive back pay to its effective date — typically the date you filed, but it can reach back to the date your condition worsened if the issue was already before the VA. Because TDIU pays at the 100% rate, this back pay can be substantial.