SSDI payments did increase in 2023, but the amount depended on when you started receiving benefits

Social Security Disability Insurance (SSDI) payments increased by 8.7 percent in 2023. This was a Cost of Living Adjustment (COLA), an annual change tied to inflation. The raise took effect in January 2023 for everyone already receiving SSDI, and it also applied to new beneficiaries whose first payment arrived that year.

The size of your raise depended on your individual benefit amount. If you were receiving $1,000 per month in December 2022, your January 2023 payment would have been $1,087. If you received $2,000 per month, your raise would have been $174. The percentage was the same for everyone, but the dollar amount reflected what you were already getting.

This raise was not something you had to request or report. Social Security applied it automatically to all active SSDI accounts. You would have seen the new amount on your January 2023 payment stub or in your online account.

Key Takeaways

  • SSDI payments increased 8.7 percent in January 2023 as a Cost of Living Adjustment, applied automatically to all beneficiaries.
  • The dollar amount of your raise depended on what you were receiving before the increase — a higher payment meant a larger raise in dollars.
  • COLA happens every year and is set by a formula based on inflation data from the third quarter of the previous year.
  • You did not need to do anything to receive the raise; Social Security applied it to your account without any action on your part.

How COLA is calculated each year

The Cost of Living Adjustment is not decided by Congress or by Social Security officials. Instead, it is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published by the Bureau of Labor Statistics. Social Security looks at the average CPI-W for July, August, and September of the year before the raise takes effect, then compares it to the same three months from the previous year.

If inflation went up during that period, beneficiaries get a raise. If inflation went down or stayed flat, there is no COLA that year — though this has happened only three times since COLA began in 1975. The percentage increase is applied to all SSDI payments uniformly, meaning everyone gets the same percentage bump regardless of how much they receive.

The 8.7 percent increase in 2023 reflected the high inflation of 2022. In 2024, the COLA was 3.2 percent because inflation had slowed. The amount changes year to year based on economic conditions, not on changes to the SSDI program itself.

What the 2023 raise meant for your monthly payment

The January 2023 COLA affected your payment in two ways. First, your regular monthly SSDI check increased by 8.7 percent. Second, if you were also receiving benefits as a family member on someone else's SSDI record — for example, as a spouse or child — that payment also increased by 8.7 percent.

If you were receiving Supplemental Security Income (SSI) in addition to SSDI, the SSI payment also went up. SSI is a separate program for people with low income, and it receives its own COLA each year, though the percentage may differ slightly from SSDI's because SSI uses a different inflation measure.

The raise appeared automatically on your payment stub. You did not receive a separate notice or letter explaining the change, though Social Security's website and your online account both showed the new payment amount. If you receive your payment by direct deposit, the new amount straightforward appeared in your bank account in January.

When COLA takes effect and how to verify your new amount

COLA always takes effect on the first day of the month following the announcement. In 2023, Social Security announced the 8.7 percent increase in October 2022, and it went into effect on January 1, 2023. You would have received your first increased payment in mid-January, depending on your payment schedule.

Social Security assigns beneficiaries to different payment dates based on birth date. If you were born between the 1st and 10th of the month, you typically receive payment on the second Wednesday of each month. If born between the 11th and 20th, you get the third Wednesday. If born between the 21st and 31st, you get the fourth Wednesday. The COLA increase applied to whichever date you normally receive payment.

To verify your new payment amount, log into your my Social Security account online or call Social Security's toll-free number at 1-800-772-1213. Your payment stub or bank deposit record will also show the new amount. If the increase did not appear in your January 2023 payment, contact Social Security to report the discrepancy.

COLA and your work incentives if you return to work

If you are receiving SSDI and considering returning to work, the COLA increase does not change how your work incentives function. You still have access to the same programs: the Trial Work Period (nine months where you can earn any amount without losing benefits), the Extended may be able to access Period (36 months where you can still receive benefits even if your earnings are high), and the Expedited Reinstatement (the ability to restart benefits quickly if you stop working within five years).

The COLA increase does affect one threshold: the Substantial Gainful Activity (SGA) level, which is the monthly earnings amount that Social Security uses to determine whether you are working at a level that would end your benefits. In 2023, the SGA level was $1,470 per month for non-blind beneficiaries and $2,310 for blind beneficiaries. These amounts increase each year along with inflation, though not necessarily by the same percentage as COLA.

Differences between SSDI COLA and SSI COLA

If you receive both SSDI and SSI, you may notice that the two programs sometimes have different COLA percentages. SSDI uses the CPI-W, while SSI uses the Consumer Price Index for All Urban Consumers (CPI-U), a broader inflation measure. In most years the percentages are close, but they can differ slightly.

For example, in 2023 SSDI received an 8.7 percent increase while SSI received the same 8.7 percent. However, in other years the gap has been larger. Both increases happen on the same date — January 1 — but they are calculated separately. If you receive both programs, your SSDI payment and your SSI payment each increase by their respective COLA percentages.

Frequently Asked Questions

Do I have to do anything to get the COLA increase?

No. Social Security applies COLA automatically to all active SSDI accounts. You do not need to contact Social Security, file any form, or take any action. The increase appears in your payment automatically in January.

What if I started receiving SSDI after January 2023?

Your first SSDI payment will already include the 2023 COLA. Social Security calculates your benefit amount using the current payment formula, which reflects the COLA that has already taken effect. You do not receive the increase twice or get a separate adjustment.

Can the COLA increase be taken away?

No. Once COLA is applied to your benefit amount, it becomes part of your ongoing payment. Future COLA increases are added on top of it. The only way your payment would decrease is if your circumstances change — for example, if you earn too much from work or if your medical condition improves and you are no longer found to have a disability.

Does COLA affect my Medicare or Medicaid?

COLA does not directly change your Medicare coverage or premiums. However, if your SSDI payment increases enough to affect your income level, it could theoretically impact Medicaid in some states. Contact your state Medicaid office if you are concerned about how a payment increase might affect your coverage.

How do I know what my new payment amount is?

Check your payment stub, your bank deposit record, or log into your my Social Security account online. You can also call Social Security at 1-800-772-1213 to confirm your current payment amount. Social Security does not send a separate letter announcing COLA changes.