Can You Get Drill Pay and VA Disability at the Same Time?

Last updated: September 2026

Here's the clear version. Yes, you can serve in the Guard or Reserve and receive VA disability compensation. But you can't be paid by both for the same day. For every day you get military pay, you have to give up either that day's VA compensation or that day's military pay. This post explains how that works, how to decide which pay to keep, and how to avoid a surprise debt.

The Short Answer: One Pay Per Day

The rule comes from federal law. 38 U.S.C. § 5304(c) says VA can't pay you compensation for any period in which you receive active service pay. Active service pay includes drill pay and annual training pay. A separate law, 10 U.S.C. § 12316, gives reservists the right to choose which payment to keep for each duty day.

The old version of this post said the answer might depend on whether your current duties matched the service that caused your disability. That isn't true. The rule applies to every paid duty day, no matter what you do on it. There's also no "Military Pay Act" behind any of this. The law is the two sections linked above.

The day count is where people get confused. VA's own waiver form explains that the Guard and Reserve report one full day of duty pay for each four-hour drill period. That means a normal two-day drill weekend counts as four days. The form also notes that most members are paid for about 63 training days a year: 48 drill periods plus 15 days of annual training. If you drilled a normal year, expect about 63 days to show up on your VA letter.

How the Annual Waiver Process Works

The process runs on the federal fiscal year, which ends September 30. According to a 2020 VA Inspector General report, after each fiscal year the Department of Defense tells VA which veterans received both VA benefits and military pay during that year.

VA then mails you VA Form 21-8951, the Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances. The form lists the number of days you were paid for training and asks you to choose which payment to give up for those days.

You have 60 days to respond. If you don't respond, VA assumes you want to keep your military pay and waive your VA compensation for the listed days. VA then takes the waived amount back by withholding it from your future VA payments. For someone who drilled a full year, that can mean one or more months with a smaller VA payment, or none at all.

That same Inspector General report found that veterans received inaccurate VA payments after drill pay adjustments, so don't assume the numbers on your letter are right. When your letter arrives, take these steps:

1. Check the day count. Compare it with your own records, like your LES, points statement, or drill schedule. Remember that each four-hour drill period counts as one day.

2. Run the numbers using the table in the next section to decide which pay to keep.

3. Sign and return the form within 60 days. Keep a copy and note the date you sent it.

4. Watch your next several VA payments. Make sure the amount withheld matches the number of days and your daily rate.

If your count doesn't match, say so on the form. The form also has space for your unit commander to confirm corrections.

Which Pay Should You Keep?

For most people, keeping drill pay and waiving VA pay puts more money in your pocket. The VA form itself says as much. But that's not true for everyone, especially junior enlisted members with high ratings. The math is simple once you know your two daily rates.

One drill period pays one-thirtieth of your monthly base pay. VA figures your daily compensation rate the same way, as one-thirtieth of your monthly payment. Here's how the two compare using VA's current rates (effective December 1, 2025, for a veteran with no dependents) and the 2026 drill pay charts.

VA rating (veteran alone)	Monthly VA pay	VA daily rate (÷30)
30%	$552.47	$18.42
50%	$1,132.90	$37.76
70%	$1,808.45	$60.28
90%	$2,362.30	$78.74
100%	$3,938.58	$131.29

Pay grade (2026)	Approx. pay per drill period
E-3, over 2 years	$100
E-4, over 4 years	$122
E-5, over 6 years	$137
E-6, over 8 years	$154

Drill pay figures are rounded; check your exact rate on the DFAS drill pay chart. Your VA daily rate is higher if you have dependents.

Say you're an E-5 with over six years of service and a 70% rating. You drill a full 63 days. If you keep drill pay, VA withholds about $3,798 (63 × $60.28), and your drill pay for those days is about $8,631. You come out well ahead by keeping drill pay.

Now say you're an E-4 with over four years and a 100% rating. VA would withhold about $8,271 for 63 days, while your drill pay for those days is about $7,686. In that case, waiving drill pay and keeping your VA pay comes out ahead.

Two more factors can tip a close call. First, VA disability pay is tax-free and drill pay is taxable, so compare what you'd actually take home. Second, before you waive military pay, ask your unit's pay or personnel office how the waiver affects your allowances, retirement points, and records. If you're close to the line either way, a VSO can help you run your exact numbers.

Active Duty Orders Work Differently

The annual waiver covers drill weekends and annual training. Longer orders work differently. If you mobilize, deploy, or go on extended active duty, VA says you can't keep receiving VA disability payments while you're getting active-duty pay.

The old version of this post claimed deployments and emergency duty often let you collect both in full. That's wrong. Federal orders are federal pay, and the same one-pay-per-day rule applies.

VA asks you to call 800-827-1000 as soon as you know you're going back on active duty so it can stop your payments. If you wait, VA keeps paying you, and you'll owe all of it back later.

State active duty is its own situation. If your governor activates you and the state pays you, that's not federal military pay, and the rules can be different. Don't assume anything either way. Check with your state's Guard finance office and with VA before you count on keeping both.

If You Get Hurt While Drilling

Injuries during drill or annual training can be service-connected, so report them. If you're injured during training, make sure your unit completes a line of duty (LOD) determination. That paperwork can make or break a future VA claim. My VA claim timeline guide explains what to expect once you file.

TDIU and Drilling

If you receive Individual Unemployability (TDIU), drilling raises a bigger question than the waiver. TDIU is based on VA's finding that you can't hold substantially gainful work. Drill pay is earned income, and serving at all can look inconsistent with that finding. Talk with an accredited VSO before you join or keep drilling while on TDIU. My TDIU eligibility guide explains how VA looks at work and income.

Later On: Retirement Pay, CRDP, and CRSC

The old version of this post presented Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC) as ways to keep drill pay and VA pay together. They aren't. Both programs deal with military retired pay, which most Guard and Reserve members don't start receiving until retirement age.

CRDP generally applies if you qualify for retired pay with 20 or more years of service and have a VA rating of 50% or higher. CRSC applies to combat-related disabilities, and you apply through your branch. You can't receive both at once, so eligible retirees pick the one that pays more.

Congress has also been debating the Major Richard Star Act, which would expand concurrent receipt for combat-injured veterans who medically retired with fewer than 20 years. Advocacy groups were still pushing for its passage in spring 2026. Until it passes, the current rules apply.

Already Got a Debt Letter?

If VA has already taken back drill days, or you owe money from active-duty orders, you have options. You can dispute a wrong day count, set up a payment plan, or ask VA to waive the debt if repaying it would cause hardship. Start by calling VA's Debt Management Center. My guide to VA disability overpayments walks through each option.

Conclusion

Navigating the regulations for receiving both military drill pay and VA disability benefits doesn't have to be overwhelming. The drill pay rule is simple once you see it: one pay per day. The trouble comes from surprise, not from the rule itself. Tell your unit about your VA rating when you join, and watch your mail after September 30 each year. Answer the waiver form within 60 days, and call VA before you go on long orders. Do those four things and you'll likely never get an overpayment letter.

Trying to make sense of your rating or your payments? Ratings math and VA rules can be confusing, even when you've read everything. Schedule a free consultation and we'll walk through it together.