What is a Special Monthly Compensation? 

The Department of Veterans Affairs (VA) pays Special Monthly Compensation (SMC) to qualifying veterans with especially serious disabilities or combinations of disabilities. Certain disabilities and combinations of disabilities are more debilitating than regular disability compensation rates account for, so VA pays a higher rate of compensation.

The VA states there are over 70 possible combinations of SMC ratings. 

SPECIAL MONTHLY COMPENSATION LEVEL N:

Anatomical Loss or Loss of Use

(38 U.S.C. § 1114(n) & 38 CFR § 3.350):

The Department of Veterans Affairs (VA) pays Special Monthly Compensation (SMC) to qualifying veterans with especially serious disabilities or combinations of disabilities. Certain disabilities and combinations of disabilities are more debilitating than regular disability compensation rates account for, so VA pays a higher rate of compensation.

SMC-N is currently an extra $2,153.76/mo over 100% pay (2025)

Special Monthly Compensation under level N is based on a veteran with one or more of four criteria:

• SMC-N1-Anatomical loss or loss of use of both arms at a level or with complications, preventing natural elbow action with prosthesis in place.

• SMC-N2-Anatomical loss of both legs so near the hip as to prevent use of a prosthetic appliance.

• SMC-N3-Anatomical loss of one arm so near the shoulder as to prevent use of a prosthetic appliance with anatomical loss of one leg so near the hip as to prevent use of a prosthetic appliance.

• SMC-N4-Anatomical loss of both eyes or blindness without light perception in both eyes.

Natural elbow or knee action: In determining whether there is natural elbow or knee action with prosthesis in place, consideration will be based on whether use of the proper prosthetic appliance requires natural use of the joint, or whether necessary motion is otherwise controlled, so that the muscles affecting joint motion, if not already atrophied, will become so. If there is no movement in the joint, as in ankylosis or complete paralysis, use of prosthesis is not to be expected, and the determination will be as though there were one in place.

Amputation is a prerequisite except for loss of use of both arms and blindness without light perception in both eyes. If a prosthesis cannot be worn at the present level of amputation but could be applied if there were a re-amputation at a higher level, the requirements of this paragraph are not met; instead, consideration will be given to loss of natural elbow or knee action.