The 2023 SSDI payment amount and how it was set
In 2023, the average Social Security Disability Insurance (SSDI) payment was $1,349 per month. This was the amount most people received, though individual payments varied based on your work history and earnings record. The Social Security Administration (SSA) calculates each person's payment separately using the wages you earned while working.
Every year, Social Security adjusts all payments by a percentage called the Cost of Living Adjustment (COLA). In 2023, that adjustment was 8.7 percent — one of the largest increases in decades. This meant that if you received SSDI in 2022, your payment went up by that percentage starting in January 2023. The adjustment happens automatically; you do not have to request it.
The payment you receive depends on how much you earned during your working years, not on how disabled you are or what your expenses are. Two people with the same disability can receive very different amounts if their work histories differ. Social Security uses your highest 35 years of earnings to calculate your benefit amount.
Key Takeaways
- The average SSDI payment in 2023 was $1,349 per month, though your individual payment depends on your earnings record, not your disability.
- Social Security increased all SSDI payments by 8.7 percent in January 2023 through the annual Cost of Living Adjustment.
- Your payment amount is based on your highest 35 years of work earnings, calculated by Social Security using your Social Security record.
- The maximum SSDI payment in 2023 was $3,822 per month, though most people received less because it is based on actual earnings history.
How Social Security calculates your individual payment
Social Security does not look at your current need or your disability. Instead, it looks backward at your work record. The agency pulls your 35 highest-earning years, removes the 5 lowest-earning years, and calculates an average monthly earnings figure. That figure becomes the basis for your payment.
If you worked fewer than 35 years, Social Security counts zeros for the missing years, which lowers your average. Someone who worked 25 years will have 10 zeros in the calculation, bringing down their average compared to someone with 35 working years. This is why people who left the workforce early or took time out for caregiving often receive smaller payments.
Social Security then applies a formula to that average to arrive at your Primary Insurance Amount (PIA) — the official name for your monthly payment. The formula is progressive, meaning it replaces a higher percentage of earnings for lower-income workers and a lower percentage for higher-income workers. This is why the maximum payment ($3,822 in 2023) is much higher than the average, but most people do not reach it.
Why 2023 payments were higher than 2022
The 8.7 percent increase in 2023 was driven by inflation. When prices for food, housing, gas, and other goods rise, Social Security automatically raises all benefit payments to help people keep up. This adjustment is called the Cost of Living Adjustment, or COLA.
COLA is calculated each year by comparing the average price level in July, August, and September of the current year to the same three months in the previous year. If prices went up, benefits go up by that same percentage. If prices stayed flat or fell, benefits would stay the same (though this has not happened since 1975).
The 8.7 percent COLA for 2023 was notably large because inflation spiked in 2022. By comparison, the 2022 COLA was 5.9 percent, and the 2021 COLA was 1.3 percent. The size of the adjustment changes year to year based on what actually happened to prices in the economy.
The maximum payment and why most people receive less
The highest SSDI payment available in 2023 was $3,822 per month. However, this amount was rare. To receive the maximum, you would have needed to earn at or above the Social Security wage base (the highest amount of earnings that Social Security counts) for 35 years. In 2023, that wage base was $160,200.
Most people received far less than the maximum because their earnings history was lower. If you earned an average salary rather than a high income, or if you had years with no earnings, your payment would be proportionally lower. The average of $1,349 reflects what most workers actually earned over their careers.
There is no way to increase your SSDI payment by working more now — your payment is locked in based on your past earnings. However, if you return to work and earn more than you did in previous years, Social Security will recalculate your payment using your new earnings record. This recalculation only happens if you go back to work while receiving SSDI, and it is subject to work incentive rules.
How payments changed from year to year
To understand what 2023 payments meant, it helps to see how they compared to previous years. In 2022, the average SSDI payment was $1,239 per month. The 8.7 percent increase brought that to $1,349 in 2023. In 2021, the average was $1,223, so over two years the average payment grew by about $126 per month.
The maximum payment also increased with COLA. In 2022, the maximum was $3,822 — which stayed the same in 2023 because of how the formula rounds. In 2021, the maximum was $3,813. These numbers show that COLA adjustments compound over time, though the actual dollar increase depends on the size of the adjustment each year.
Future payments will continue to change based on annual COLA adjustments. If inflation remains high, adjustments will be larger. If inflation slows, adjustments will be smaller. Social Security publishes the new payment amounts each October for the following year, so you can see what to expect before January arrives.
What your 2023 payment meant for your budget
For many people, SSDI is the only income they have. The average payment of $1,349 per month is below the federal poverty line for an individual, which was $13,820 per year in 2023. This means most SSDI recipients lived below the poverty threshold, even with the COLA increase.
Some people received SSDI along with other benefits. If you were also receiving Supplemental Security Income (SSI), your total monthly income combined both payments. If you had a spouse or child who was also receiving a benefit based on your work record, their payments were separate from yours. Family members can receive up to 50 percent of your Primary Insurance Amount, but the total paid to your entire family cannot exceed a family maximum (usually around 150 to 180 percent of your own payment).
The 2023 payment amount was what you received each month, barring any changes to your case. If you returned to work and earned above the Substantial Gainful Activity (SGA) limit, your payments would have stopped. If you had a medical improvement review and Social Security found you were no longer disabled, your payments would have ended. Otherwise, your 2023 payment continued into 2024 and beyond until the next COLA adjustment.
Frequently Asked Questions
Is the 2023 SSDI payment amount still what I receive today?
No. Social Security adjusts all payments every January based on the previous year's inflation. Your 2023 payment was increased again in January 2024, and it will increase again in January 2025. To find your current payment, check your Social Security statement online or call Social Security at 1-800-772-1213.
Why is my SSDI payment different from the average of $1,349?
Your payment is based on your individual earnings history, not on the average. If you earned less than the average worker over your career, your payment will be lower. If you earned more, it will be higher. Social Security calculates each person's benefit separately using their own Social Security record.
Can I do anything to increase my SSDI payment from 2023?
Your payment amount is fixed based on your past earnings and cannot be increased by requesting a review. The only way your payment changes is through the annual COLA adjustment or if you return to work and earn more than you did in previous years, which triggers a recalculation.
What happens to my SSDI payment if I work while receiving benefits?
If you earn above the Substantial Gainful Activity limit (which changes yearly), Social Security will stop your payments for any month you exceed that amount. In 2023, the SGA limit was $1,470 per month. Work incentive programs exist to help you test work without when ready losing all benefits, so contact Social Security before you start working.
Does my SSDI payment include Medicare or Medicaid?
No. Your SSDI payment is cash only. However, after you receive SSDI for 24 months, you become may be able to access for Medicare automatically. Medicaid may be able to access depends on your state and income level. These are separate programs from SSDI, though they often go together.