VA compensation basics
What is the difference between a 100% schedular VA rating and TDIU?
A 100% schedular rating and Total Disability based on Individual Unemployability (TDIU) can pay at the 100% compensation rate, but they are different. A 100% schedular rating comes from VA's rating schedule and the combined evaluations assigned to service-connected disabilities. TDIU pays at the 100% rate when service-connected disabilities prevent substantially gainful employment even though the schedular rating is less than 100%.
Can you work with a 100% schedular VA rating?
A 100% schedular disability rating does not, by itself, create the same employment test used for TDIU. VA disability evaluations measure impairment under the rating schedule. A Veteran with a schedular 100% rating may still work unless another benefit or circumstance has its own separate rule.
Do not assume that Permanent and Total status, a 100% schedular rating, and TDIU are interchangeable labels. They describe different benefit facts.
How TDIU is different
VA describes Individual Unemployability as a benefit for Veterans who cannot maintain substantially gainful employment because of service-connected disability. If VA grants TDIU, the underlying schedular disability rating does not become 100%; the monthly compensation is paid at the 100% rate.
VA lists schedular threshold rules for many TDIU cases and also recognizes that some cases may qualify at lower ratings. The actual eligibility decision belongs to VA.
What employment means for TDIU
VA states that marginal employment, such as odd jobs, does not count as substantially gainful employment for its TDIU eligibility description. Employment facts can be nuanced, including earnings, work setting, continuity, and whether the work is protected or marginal.
If a Veteran receiving TDIU begins working, the effect on benefits depends on the facts and applicable rules. VMC should not turn a job title or income entry into an automatic eligibility conclusion.