The 2023 SSDI payment increase was 8.7 percent, the largest raise in four decades

In October 2022, the Social Security Administration announced that monthly SSDI payments would rise by 8.7 percent starting January 2023. This increase, called a Cost of Living Adjustment (COLA), meant that someone receiving $1,000 per month in December 2022 would receive $1,087 in January 2023. The raise applied to all SSDI beneficiaries automatically — you did not have to request it or submit any paperwork.

The 8.7 percent figure was set by a formula tied to inflation. When inflation rises, the government measures the change in the Consumer Price Index (the cost of everyday goods and services) and passes that percentage increase to Social Security recipients. The 2023 raise was unusually large because inflation had climbed significantly during 2022.

This was not a one-time event. COLA adjustments happen every year, though the percentage changes based on inflation that year. The 2024 COLA was 3.2 percent, and the 2025 COLA is 2.5 percent. Your payment amount will shift each January if a COLA is announced.

Key Takeaways

  • The 2023 COLA raised all SSDI payments by 8.7 percent automatically, with no action required from you.
  • COLA adjustments are calculated from inflation data and happen every January, though the percentage varies year to year.
  • Your new payment amount appears in your January 2023 bank account or check without a separate notice — you can confirm it on your Social Security account online.
  • If you were receiving SSDI in December 2022, you received the raise; if you started SSDI after January 2023, your first payment already included the 2023 raise.

How the 2023 raise affected your actual payment amount

The 8.7 percent increase applied to your full monthly benefit amount, whatever that was. If you received $800 per month, your new amount was $869. If you received $2,000 per month, your new amount was $2,174. The raise was proportional — everyone got the same percentage bump, not the same dollar amount.

If you were on a family benefit (meaning your spouse or children also received payments based on your SSDI record), each family member's payment rose by 8.7 percent as well. The total amount your household received from Social Security increased by 8.7 percent.

The raise also affected your Supplemental Security Income (SSI) payment if you received both SSDI and SSI. SSI has its own COLA, which was also 8.7 percent in 2023. If you received only SSI, not SSDI, the same 8.7 percent increase applied to your SSI payment.

When the raise took effect and how you received notice

The 2023 COLA took effect on January 1, 2023. Your first payment at the new amount arrived in early January (usually by the third week of the month, depending on your birth date and payment method). You did not receive a separate letter announcing the change — the Social Security Administration sends COLA notices to all beneficiaries, but the notice often arrives after your payment has already increased.

To confirm your new payment amount, you could log into your my Social Security account at ssa.gov and view your payment history. Your account shows the exact amount deposited each month. If you did not have an online account, you could call Social Security at 1-800-772-1213 to ask about your new payment amount.

If you received your payment by check rather than direct deposit, the check amount reflected the raise. Some beneficiaries did not notice the increase when ready because they were not expecting a change, but the money was there.

Why 2023 was different from other years

The 8.7 percent COLA in 2023 was historically large. For comparison, the 2022 COLA was 5.9 percent, the 2021 COLA was 1.3 percent, and the 2020 COLA was 1.6 percent. The reason 2023 was so much higher was that inflation spiked in 2022 — the prices of food, energy, housing, and other essentials climbed faster than they had in decades.

Social Security's COLA formula uses inflation data from the third quarter of the year (July, August, September) and announces the next year's adjustment in October. Because inflation was very high in mid-2022, the 2023 COLA was set at 8.7 percent. When inflation slowed in 2023 and 2024, the COLA percentages for those years dropped accordingly.

The 2023 raise meant that SSDI beneficiaries' purchasing power — what their money could actually buy — recovered somewhat from the inflation of 2022. However, because inflation had already eroded the value of their payments during 2022, the 8.7 percent raise did not fully restore what they had lost.

What happened if you started SSDI after the 2023 raise

If your SSDI began in January 2023 or later, your first payment already included the 2023 COLA. You did not receive a separate "base" amount and then a raise — the 8.7 percent was already built into your initial payment calculation. The Social Security Administration calculates your benefit based on your earnings record, and then applies the current COLA to that amount.

This means you did not miss out on the raise by starting SSDI after January 2023. The raise was part of how your benefit was calculated from the start.

How COLA affects your future payments

Every January, Social Security announces whether there will be a COLA for that year and what the percentage will be. This announcement happens in October of the previous year. Your payment amount will change on January 1 of each year that a COLA is announced, unless Congress passes a law to suspend it (which has happened only a few times in Social Security's history).

You cannot predict what future COLA percentages will be, because they depend on inflation data that has not yet occurred. Financial advisors sometimes estimate future COLA amounts based on inflation forecasts, but these are guesses, not guarantees. The actual percentage is set by the government's inflation measurement formula.

If you are planning your budget or expenses, you can check the Social Security Administration's website in October each year to see what the next year's COLA will be. This gives you a few months to adjust your plans before the new payment amount takes effect in January.

Frequently Asked Questions

Did I have to do anything to get the 2023 raise?

No. The COLA was automatic for all SSDI beneficiaries. You did not need to contact Social Security, submit paperwork, or take any action. If you were receiving SSDI in December 2022, your January 2023 payment was automatically 8.7 percent higher.

What if I did not see the raise in my bank account?

Check your payment history in your my Social Security account online, or call 1-800-772-1213 to confirm your current payment amount. If the raise was not applied, contact Social Security when ready — errors are rare but do happen. Have your Social Security number and recent payment stubs ready when you call.

Does the 2023 raise affect how much I can earn while on SSDI?

No. The amount you can earn without losing benefits (called the Substantial Gainful Activity limit) is set separately from COLA and changes only if Congress or the Social Security Administration updates it. Your SSDI payment went up, but your work limits stayed the same.

Will I get another raise in 2024 and beyond?

Yes, but the percentage will vary. The 2024 COLA was 3.2 percent and the 2025 COLA is 2.5 percent. Future COLA amounts depend on inflation and are announced each October for the following January.

If I appeal a denied SSDI claim, does the 2023 raise matter?

If your appeal is approved, your back pay (the money owed from when you should have started receiving benefits) will be calculated using the payment rates that were in effect during that period. The 2023 raise does not change how back pay is calculated for past months.