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 O:

Anatomical Loss or Loss of Use of Multiple Extremities or Multiple Other SMC Ratings

(38 U.S.C. § 1114(o) & 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-O is currently an extra $2,858.51/mo over 100% pay (2025)

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

• SMC-O1(i)-Anatomical loss of both arms so near the shoulder as to prevent use of a prosthetic appliance.

• SMC-O1(ii)-Conditions entitling to two or more of the rates (no condition being considered twice) of SMC-L, SMC-M or SMC-N.

• SMC-O1(iii)-Bilateral deafness rated at 60% or more disabling (and the hearing impairment in either one or both ears is service connected) in combination with service-connected blindness with bilateral visual acuity 20/200 or less.

• SMC-O1(iv)-Service-connected total deafness in one ear or bilateral deafness rated at 40 percent or more disabling (and the hearing impairment in either one of both ears is service-connected) in combination with service-connected blindness of both eyes having only light perception or less.

• SMC-O2-(Paid at 100%) Paraplegia.  Paralysis of both lower extremities together with loss of anal and bladder sphincter control through the combination of loss of use of both legs and helplessness. The requirement of loss of anal and bladder sphincter control is met even though incontinence has been overcome under a strict regimen of rehabilitation of bowel and bladder training and other auxiliary measures.

NOTE: The combination of SMC-L for “being permanently bedridden” and SMC-L for regular aid and attendance without separate and distinct anatomical loss, or loss of use, of two extremities, or blindness, does not qualify for SMC-O unless these are for two separate and distinct entitling disabilities

NOTE: SMC-O as a result of including helplessness as one of the entitling multiple disabilities, is intended to cover, in addition to obvious losses and blindness, conditions such as the loss of use of two extremities with absolute deafness and nearly total blindness or with severe multiple injuries producing total disability outside the useless extremities, these conditions being construed as loss of use of two extremities and helplessness.