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 P:

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

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

• SMC-P1-The anatomical loss or loss of use of a leg at or below the knee along with the anatomical loss or loss of use of the other leg at a level above the knee.

• SMC-P1-The anatomical loss or loss of use of a leg below the knee along with the anatomical loss or loss of use of an arm above the elbow.

• SMC-P1-The anatomical loss or loss of use of one leg above the knee and the anatomical loss or loss of use of a hand.

• SMC-P2-Blindness in both eyes meeting the requirements outlined in SMC-L, SMC-M or SMC-N levels.

• SMC-P5-Three extremities.  Anatomical loss or loss of use, or a combination of anatomical loss and loss of use, of three extremities.

Additional independent 100% ratings.  In addition to the statutory rates payable under SMC-L through SMC-N and ½ step or next higher SMC rates, additional single permanent 100% independently ratable disability (not counting TDIU/individual unemployability) will afford entitlement to the next higher SMC rate. If already entitled to an intermediate ½ step rate, to the next higher intermediate rate, but not higher than the SMC-O rate. The single permanent disability independently ratable at 100 percent must be separate and distinct and involve different anatomical segments or bodily systems from the conditions establishing entitlement under SMC-L through SMC-N or the intermediate rate provisions outlined above.

NOTE: Where the multiple loss or loss of use entitlement to a statutory or intermediate rate between SMC-L and SMC-O is caused by the same etiological disease or injury, that disease or injury may not serve as the basis for the independent 50 percent or 100 percent unless it is rated without regard to the loss or loss of use.

NOTE: The graduated ratings for arrested tuberculosis will not be utilized in this connection, but the permanent residuals of tuberculosis may be utilized.

Loss of Use: A Veteran may qualify as having lost use of a hand if he or she is no longer able to grasp and pick up small items with that hand or if he is not able to manipulate them. For example, they may not be able to pick up and write with a pen or may not be able to fasten buttons. In the same way, if the Veteran cannot bend the elbow, he or she may be considered to have lost the use of that arm.

Similarly, where a Veteran is not able to balance on a foot or use it to move forward, he or she may qualify for loss of use of that foot. In addition, where a Veteran is unable to bend the knee and, therefore, unable to properly use the leg, he or she may qualify for loss of use of that leg.

STATUTORY SMC-P: In some cases, intermediate ½ step SMC codes may indicate SMC-P yet be paid at the intermediate rating level (SMC-L ½ , SMC M ½ , SMC N ½ ). Review the decision letter.