Social Security Disability Insurance (SSDI) payments increase once per year, tied to the cost of living

Yes, SSDI payments go up each year. The increase is called a Cost-of-Living Adjustment (COLA), and it is set by a formula based on inflation data, not by a vote or decision made each year. The Social Security Administration announces the new COLA amount in October, and the raise takes effect the following January.

The amount of the raise varies year to year. In some years it has been as low as 1.3 percent; in others it has exceeded 8 percent. The size depends on how much prices rose for everyday goods and services during the measurement period (July through June). If inflation was low, your raise is low. If inflation was high, your raise is higher.

The raise applies automatically. You do not have to ask for it, file a form, or contact Social Security. If you are receiving SSDI on January 1st, the new amount appears in your next payment.

Key Takeaways

  • SSDI payments increase once per year in January based on a formula tied to inflation, not on your individual circumstances or work history.
  • The Social Security Administration announces the COLA percentage in October for the raise that takes effect the following January.
  • You receive the raise automatically with no action required on your part.
  • The raise applies to your primary benefit amount and also increases the maximum family benefit and the earnings limit for work incentives.
  • If you are also receiving Supplemental Security Income (SSI), that program has a separate COLA that may differ from SSDI.

When the raise takes effect and how to find out the amount

The COLA announcement happens in mid-October each year. Social Security publishes the percentage on its website and sends a notice to all beneficiaries. You can also call 1-800-772-1213 or visit ssa.gov to find the current year's COLA.

The raise appears in your January payment. If you receive SSDI by direct deposit, the new amount will be in your account on the third day of the month (or the next business day if the 3rd falls on a weekend). If you receive a check, it arrives by mail according to your payment schedule.

You can see the new amount before January arrives. In December, Social Security mails a notice called the Social Security Benefit Statement showing your January payment amount. You can also log into your my Social Security account online to view the updated figure.

What the raise covers and what it does not

The COLA raises your primary benefit amount — the monthly payment you receive as a disabled worker. It also raises the maximum family benefit (the total amount all your family members can receive based on your record) and adjusts the earnings limit for work incentives like the Trial Work Period.

The raise does not change your medical condition status or your work capacity. It does not affect whether you remain on the SSDI rolls or whether you are subject to continuing disability reviews. It is purely a payment adjustment.

If you are receiving both SSDI and Supplemental Security Income (SSI), the two programs have separate COLAs. SSDI follows the formula described above. SSI has its own COLA tied to the same inflation measure, but SSI also has a federal benefit rate that can change independently. Some years the two raises differ slightly.

How the COLA is calculated

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published by the U.S. Bureau of Labor Statistics. Social Security compares the average CPI-W for July, August, and September of the current year to the average for the same three months of the previous year. The percentage increase becomes the COLA.

If there is no increase — that is, if prices stayed flat or fell — there is no COLA that year. This has happened only three times since automatic COLAs began in 1975: in 2010, 2011, and 2016.

You cannot control the COLA, and neither can Social Security. The formula is set by law. Social Security's role is to calculate it correctly and explore it to all beneficiaries.

What happens if you return to work or your circumstances change

The COLA still applies to you. If you are working and earning above the substantial gainful activity (SGA) level, your SSDI may be suspended, but when it resumes, the resumed amount includes all prior COLAs you would have received. You do not lose the raises.

If your benefit was reduced because of other income (such as workers' compensation or a government pension), the COLA is applied to your reduced amount, not to the original amount. The percentage increase is the same, but the dollar amount is smaller.

If you are in a work incentive program like Impairment Related Work Expenses (IRWE) or Plan to Achieve Self-Support (PASS), the COLA applies to your benefit, and the earnings thresholds in those programs also adjust upward.

How to plan for the COLA and what to do if the amount seems wrong

The COLA is predictable in timing (always January) but not in amount. If you budget your monthly expenses, plan for a raise in January but do not count on a specific dollar amount until October when Social Security announces it.

If you receive the December notice showing your January amount and it looks incorrect, contact Social Security before January to report the error. Call 1-800-772-1213, visit your local Social Security office, or log into my Social Security to send a message. Social Security can correct the amount before the January payment is issued.

Common reasons a COLA amount might look wrong: a recent change in your benefit (such as a suspension or reduction you forgot about), a recent overpayment that Social Security is withholding from, or a change in your family composition that affected your maximum family benefit. Social Security's notice should explain any reduction, but if it does not, ask.

Frequently Asked Questions

Can I get the COLA if I just started receiving SSDI in December?

Yes. If you are receiving SSDI on January 1st, you receive the COLA in your January payment, even if you have been on the rolls for only a few weeks. The COLA applies to all beneficiaries regardless of how long they have been receiving payments.

What if I disagree with the COLA amount Social Security announced?

The COLA is set by law and calculated by a fixed formula. You cannot dispute the percentage itself. However, you can verify that Social Security applied the correct COLA to your specific benefit amount. If the dollar amount in your January payment does not match the calculation (your December benefit times the COLA percentage), contact Social Security to report the discrepancy.

Does the COLA explore if I am working and my SSDI is suspended?

The COLA does not appear in your payment while your SSDI is suspended because you are not receiving a payment. However, when your SSDI resumes (because your earnings drop below the SGA level or your work incentive period ends), the resumed amount includes all the COLAs that occurred while you were suspended. You do not lose the raises.

If I am on SSI and SSDI, do I get two raises?

You receive one raise to your SSDI and a separate raise to your SSI. Both programs have COLAs, but they are calculated independently and may differ slightly. Your SSDI raise is based on the CPI-W formula. Your SSI raise is also based on inflation but is applied to the federal benefit rate, which can change for other reasons too.

What if the COLA is zero — do I get no raise that year?

Correct. If inflation was flat or negative during the measurement period, there is no COLA that year, and your January payment is the same as your December payment. This is rare but has occurred. You do not receive a make-up raise in later years; the zero year straightforward means no adjustment.