The 2024 SSDI benefit increase is 3.2 percent

Social Security Disability Insurance (SSDI) payments increased by 3.2 percent in January 2024. This means that if you received a monthly SSDI payment in December 2023, your January 2024 payment was 3.2 percent higher. The increase applied automatically to all SSDI beneficiaries — you did not have to do anything to receive it.

The 3.2 percent figure is the Cost of Living Adjustment (COLA), which Social Security calculates each year based on inflation. COLA is not a raise in the sense that your benefit rate changed; instead, it is an adjustment to keep your payment from losing purchasing power as prices rise. The adjustment is the same percentage for all SSDI beneficiaries, regardless of how much you receive.

If you are on SSDI and also receive Medicare, your Part B premium may have increased as well. Social Security holds harmless most beneficiaries who were on the rolls before 2005, meaning your benefit cannot decrease even if Part B premiums rise. Newer beneficiaries do not have this protection and may see a smaller net increase if premiums went up.

Key Takeaways

  • The 2024 COLA of 3.2 percent was applied to all SSDI payments in January 2024 with no action required on your part.
  • COLA is calculated annually based on inflation and protects your purchasing power, not a discretionary raise.
  • If you also pay Medicare Part B premiums, your net increase may be smaller because premiums can rise alongside COLA.
  • Beneficiaries on the rolls before 2005 are protected from losing money if Part B premiums rise; those added after 2005 are not.
  • Your actual dollar increase depends on your individual benefit amount, which is based on your work history and age at the time you began receiving SSDI.

How COLA is calculated each year

Social Security announces the COLA percentage in October for the following year. The 3.2 percent for 2024 was announced on October 12, 2023. The calculation is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across a broad basket of goods and services.

Specifically, Social Security compares the average CPI-W for the third quarter of the current year (July, August, September) to the average for the third quarter of the previous year. If there is an increase, that percentage becomes the COLA. If the index is flat or declines, COLA is zero — benefits do not decrease, but they also do not rise.

COLA has varied significantly in recent years. In 2023, the COLA was 8.7 percent because inflation spiked in 2022. In 2022, it was 5.9 percent. In 2021, it was 1.3 percent. The 3.2 percent for 2024 reflects a cooling in inflation compared to the prior two years but still represents a meaningful adjustment.

What your actual dollar increase looks like

Your individual dollar increase depends on your current monthly benefit amount. If you receive $1,000 per month, a 3.2 percent increase means your new payment is $1,032. If you receive $1,500 per month, your new payment is $1,548. The percentage is the same for everyone, but the dollar amount varies because it is calculated on your existing benefit.

Your benefit amount itself is determined by your Primary Insurance Amount (PIA), which is based on your lifetime earnings record and the age at which you began receiving SSDI. COLA does not change how your PIA is calculated — it straightforward adjusts the dollar amount you receive each month to account for inflation.

If you are receiving SSDI as a family (for example, as a spouse or child of a disabled worker), each family member's benefit is adjusted by the same 3.2 percent. Family benefits are capped at a maximum, so if your family's total would exceed that cap after the increase, Social Security recalculates to stay within the limit.

SSDI and Medicare Part B premiums in 2024

Many SSDI beneficiaries also receive Medicare, which begins automatically after you have been on SSDI for 24 months. Medicare Part B (medical insurance) has a monthly premium that is deducted from your Social Security payment. In 2024, the standard Part B premium is $164.90 per month, up from $164.90 in 2023 (no change from the prior year).

However, if you are subject to Income-Related Monthly Adjustment Amounts (IRMAA), your Part B premium may be higher. IRMAA applies if your income exceeds certain thresholds and is based on your Modified Adjusted Gross Income (MAGI) from two years prior. In 2024, IRMAA brackets were adjusted upward, which means fewer beneficiaries fell into the higher premium tiers than in 2023.

If you are held harmless under the pre-2005 rule, your net SSDI payment cannot decrease even if Part B premiums rise. This means you keep the full 3.2 percent increase. If you are not held harmless, your net increase is reduced by any premium increase, though your gross benefit (before premiums) still rises by 3.2 percent.

How to verify your 2024 payment amount

Your January 2024 SSDI payment should have reflected the 3.2 percent increase automatically. You can verify the amount by logging into your my Social Security account at ssa.gov. Once logged in, you can view your payment history and current monthly benefit amount.

If you do not have a my Social Security account, you can create one at ssa.gov/myaccount. You will need your Social Security number, email address, and a way to verify your identity (such as a driver's license or passport). Creating an account takes about 10 minutes and gives you access to your benefit information anytime.

You can also call Social Security's toll-free number at 1-800-772-1213 (TTY 1-800-325-0778) to ask about your current payment amount. Have your Social Security number ready. Wait times are typically shorter early in the morning or later in the afternoon.

COLA and your work incentives under SSDI

If you are working while on SSDI, the 3.2 percent COLA increase applies to your benefit just as it does to anyone else. Your work does not affect whether you receive the adjustment. However, your earnings may affect how much of your benefit you actually receive in a given month.

SSDI has a Trial Work Period (TWP) that lasts nine months, during which you can earn any amount without affecting your benefit. After the TWP, your benefit is reduced by $1 for every $2 you earn above the monthly earnings limit (called Substantial Gainful Activity, or SGA). The SGA limit for 2024 is $1,550 per month for non-blind individuals and $2,590 for blind individuals.

The COLA increase does not change how work incentives are calculated, but it does mean the dollar thresholds may shift in future years. Social Security publishes updated work incentive amounts each January, so check your my Social Security account or call Social Security if you are working and want to know your current limits.

Frequently Asked Questions

Do I have to do anything to get the 3.2 percent increase?

No. The COLA increase is applied automatically to all SSDI beneficiaries in January. You do not need to contact Social Security, file a form, or take any action. If you are receiving SSDI, your January payment already included the 3.2 percent adjustment.

Why is COLA based on inflation from the previous year?

Social Security uses the third quarter average (July through September) to smooth out month-to-month price swings. This gives a more stable picture of inflation than a single month would. The lag means the 2024 COLA reflects 2023 inflation, not current prices, which is why COLA sometimes feels out of step with what you see at the store.

Will my SSDI increase again in 2025?

Yes, there will be a 2025 COLA, but the percentage is not known until October 2024. COLA is announced each October for the following year. If inflation continues to moderate, the 2025 COLA may be lower than 3.2 percent; if inflation rises, it could be higher.

If I am on SSDI and also receive Supplemental Security Income (SSI), do I get two increases?

No. If you receive both SSDI and SSI, you receive one combined payment. The COLA applies to your SSDI portion only. SSI has a separate federal benefit rate that is adjusted annually, but the adjustment is not always the same percentage as COLA.

Can COLA ever be zero or negative?

COLA can be zero if inflation is flat or negative, but it cannot be negative. Your benefit will never decrease due to COLA. The last time COLA was zero was in 2010 and 2011. Since then, COLA has been positive every year, though the percentage has varied widely.