What it is: Total Disability based on Individual Unemployability — TDIU or just “IU” — lets the VA pay you at the full 100% compensation rate even when your combined schedular rating is less than 100%, as long as your service-connected conditions prevent you from holding down substantially gainful employment. The rule lives in 38 CFR §4.16.
In real dollars, that means a veteran rated 70% who cannot work because of service-connected PTSD, back injury, or similar conditions can be paid the same $3,938.58 per month (2026, single veteran) as a veteran rated 100% on the schedule. For many veterans, TDIU is the difference between a partial check and a full one.
The Rating Thresholds (§4.16(a))
- One 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.
Even If You Don’t Meet the Numbers (§4.16(b))
If your ratings fall short of those thresholds but your conditions still make you unemployable, the VA can grant extraschedular TDIU on referral to the Director of Compensation Service. The numbers are the front door — they are not the only door.