Your SSDI payment increases once a year, in January, based on a formula tied to inflation

Social Security Disability Insurance (SSDI) payments are not fixed. Every January, the Social Security Administration announces a Cost of Living Adjustment (COLA), and your monthly payment goes up by that percentage if you are receiving SSDI. The COLA is based on how much prices rose for everyday goods and services during the previous year. If inflation was high, your COLA is higher. If inflation was low or prices fell, your COLA might be very small or zero.

You do not need to do anything to receive this increase. It happens automatically. Your new payment amount appears in your January benefit, and the Social Security Administration sends you a notice in December telling you what the new amount will be.

The COLA affects all SSDI recipients the same way — there is no separate calculation for different people or conditions. A person receiving SSDI for a back injury and a person receiving SSDI for a mental health condition both receive the same percentage increase in January.

Key Takeaways

  • Your SSDI payment increases automatically every January by the COLA percentage announced by Social Security.
  • The COLA is based on inflation from the previous year and varies from year to year — it is not a fixed percentage.
  • You receive a notice in December showing your new payment amount starting in January.
  • Your payment may also increase if you return to work under the Ticket to Work program or if your medical condition worsens and you request a new review.

How the COLA is calculated and announced

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures how prices change for things people buy regularly — food, housing, transportation, medical care. The Social Security Administration compares prices from the third quarter of one year to the third quarter of the previous year. The percentage change becomes your COLA.

Social Security announces the COLA in October for the January increase that follows. For example, in October 2023, Social Security announced the 2024 COLA. You can find the announcement on the Social Security website, and news outlets report it widely. The COLA has ranged from 0% in some years to over 8% in recent years, depending on inflation.

What happens to your payment if you work

If you work while receiving SSDI, your payment may change based on your earnings, not the COLA. SSDI has an Earnings Test — if you earn above a certain amount per month, your benefits are reduced or stopped. The threshold changes each year, but it is separate from the COLA increase.

If you are part of the Ticket to Work program, you can work and keep your full SSDI payment for a longer period without the Earnings Test explore. Your payment still receives the annual COLA increase, but your work does not reduce it during the ticket period. Once the ticket period ends, the Earnings Test applies again.

Increases when your medical condition changes

The COLA is not the only reason your payment might increase. If your medical condition worsens and you request a new medical review, Social Security may determine that your condition is now more severe. If that happens, your payment can increase mid-year, not just in January.

You would need to contact Social Security and ask for a new review. You should have recent medical records showing the worsening condition. Social Security will schedule a review, which can take several months. If they approve the increase, it usually starts the month after they make the decision.

Increases if you reach full retirement age

If you are receiving SSDI and you reach your full retirement age, your SSDI payment converts to a retirement benefit. The amount usually stays the same or increases slightly, depending on your work history and the calculation Social Security uses for retirement benefits. This is not a COLA — it is a change in the type of benefit you receive.

Full retirement age depends on your birth year and ranges from 66 to 67 for people born in 1943 or later. Social Security will notify you before this happens and explain the change.

Increases if you have dependents

If you have a spouse or children who receive benefits based on your SSDI record, they each receive their own payment. Those payments also increase by the COLA in January. If a new dependent becomes may be able to access — for example, a child turns 16 and becomes may be able to access for a benefit — their payment is added to your household's total, but your own SSDI payment does not increase. Only the COLA affects your individual payment amount.

What to do if your payment does not increase as expected

If you receive your January benefit and the amount is not what the December notice said, contact Social Security when ready. Call 1-800-772-1213 (TTY 1-800-325-0778) or visit your local Social Security office. Have your notice from December ready so you can compare the amounts.

Errors can happen — a payment might be held for a debt, or a work report might have been processed incorrectly. Social Security can tell you why the amount changed and how to fix it if there is a mistake.

Frequently Asked Questions

Can I get an SSDI increase before January?

The annual COLA increase only happens in January. However, if your medical condition worsens significantly, you can request a new review that may result in a mid-year increase. This process takes time and is not may provide. Work-related changes can also affect your payment outside of January if the Earnings Test applies.

What if the COLA is 0%?

In years when inflation is very low or prices fall, Social Security may announce a COLA of 0%. Your payment stays the same in January. This has happened only a few times in recent decades, but it is possible. You still receive your regular payment amount.

Does the COLA increase explore to Supplemental Security Income (SSI)?

SSI recipients also receive a COLA increase in January, calculated the same way as SSDI. However, SSI is a different program with different rules about work and income. If you receive both SSDI and SSI, both payments increase by the same COLA percentage.

How do I know what my new payment will be?

Social Security sends a notice in December showing your new payment amount starting in January. You can also create a my Social Security account online at ssa.gov to view your payment information. If you do not receive a notice, contact Social Security to request one.

Will my COLA increase be the same as other people's?

Yes. Everyone receiving SSDI receives the same COLA percentage increase in January. The amount of the increase in dollars will be different for each person because it is based on their current payment, but the percentage is the same for all.