Veterans' Compensation Amendments of 1988

Veterans' Compensation Amendments of 1988 - Increases the rates of compensation, dependency and indemnity compensation, and the clothing allowance payable to veterans with service-connected disabilities and their survivors.

Authorizes the Administrator of Veterans Affairs to administratively adjust the rates of disability compensation payable to persons who are not in receipt of compensation for service-connected disability or death.

Provides for the payment of benefits to the surviving spouse and to the children of a veteran who dies from causes other than the veteran's own willful misconduct, and who was in receipt of, entitled to receive, or but for the receipt of retired or retirement pay would have been entitled to receive, compensation at the time of death for a service-connected disability that was continuously rated totally disabling for: (1) ten years or more immediately preceding death; or (2) not less than five years from the date of such veteran's discharge or other release from active duty.

Prohibits the payment of benefits to a surviving spouse under this Act unless: (1) the marriage to the veteran occurred before the expiration of 15 years after the veteran's discharge or other release from active duty; (2) the surviving spouse was married to the veteran for one year or more; or (3) a child was born of the marriage or was born to them before the marriage.

Provides for a reduction of benefits to a surviving spouse or child receiving money or property pursuant to an award in a judicial proceeding based upon, or a settlement or compromise of, any cause of action for damages for the death of such veteran.

Revises provisions providing for vocational rehabilitation for pension recipients to qualify for an eligibility evaluation any veteran who was awarded a pension before the beginning of the program period, and to remove the limitation on the number of veterans who may be given evaluations each year. Extends the program period through January 31, 1992.

Provides for the continued operation of the Veterans Administration's regional office in the Philippines through September 30, 1991.