Defence Secretary Bob Ainsworth announced the changes to the armed forces compensation scheme to MPs.
Although the maximum amount that can be claimed will remain at £570,000, some one-off payouts will rise by 50%.
The announcement came as the National Audit Office said wounded soldiers were stretching hospital resources.
Mr Ainsworth told Parliament he would implement all of the compensation changes recommended in a review by the former chief of the defence staff, Admiral Lord Boyce.
The Ministry of Defence (MoD) had set up the review in the wake of growing public pressure to increase payouts given to soldiers injured in battle. Read more….