What changed in 2023

In 2023, Social Security Disability Insurance (SSDI) payments increased by 8.7 percent. This was the largest increase in four decades. The increase took effect in January 2023 and applied to everyone receiving SSDI benefits that month.

This increase is called a Cost of Living Adjustment, or COLA. Social Security calculates it each year based on inflation — how much prices for everyday things like food, housing, and medicine have risen. When inflation goes up, your benefit goes up too.

The 8.7 percent jump in 2023 reflected the high inflation the country experienced in 2022. In other years, the COLA is smaller or sometimes zero if inflation is very low.

Key Takeaways

  • The 2023 COLA of 8.7 percent was the largest increase since 1981 and affected all SSDI recipients starting in January 2023.
  • Your exact dollar increase depends on what you were receiving before January 2023 — there is no single amount that applies to everyone.
  • Social Security calculates COLA each October based on inflation data from the previous months, so the 2024 COLA will be different from 2023.
  • If you receive SSDI, you do not need to do anything to get the increase — it happens automatically.

How much your payment went up

The 8.7 percent increase means that if you were receiving $1,000 per month in December 2022, your January 2023 payment became $1,087. If you were receiving $1,500, it became $1,630.50.

Your actual increase in dollars depends entirely on what you were receiving before the adjustment. There is no single dollar amount — the percentage applies to whatever your benefit was. Social Security sent notices in December 2022 showing the new amount for each person.

If you did not receive a notice, you can check your current payment amount by logging into your my Social Security account online at ssa.gov, or by calling Social Security at 1-800-772-1213.

Why COLA changes year to year

The COLA is not set in advance. Social Security looks at inflation data from July, August, and September of each year and announces the next year's increase in October. The 2023 increase of 8.7 percent was announced in October 2022. The 2024 COLA, announced in October 2023, was 3.2 percent — much lower because inflation had cooled.

This means your benefit will go up by a different percentage each January, depending on what inflation was like in the months before. Some years the COLA is very small. In 2010, 2011, and 2016, there was no COLA at all because inflation was flat or negative.

You cannot predict what next year's COLA will be, but Social Security announces it every October, so you will know before January what your new payment will be.

What counts toward your benefit amount

Your SSDI payment is based on your Primary Insurance Amount, or PIA. This is calculated from your work history — specifically, your average earnings over your working years. The higher your earnings record, the higher your PIA, and the higher your COLA increase in dollars.

COLA is a percentage, so someone receiving $500 per month gets a smaller dollar increase than someone receiving $2,000 per month, even though the percentage is the same. This is why two people with SSDI do not receive the same increase amount in January.

If you have questions about how your specific benefit was calculated, you can request a Social Security Statement from your my Social Security account, which shows your earnings history and estimated benefit.

How the 2023 increase affected other benefits

If you receive Supplemental Security Income (SSI) in addition to SSDI, the SSI portion also increased in 2023, though SSI has its own separate maximum amounts that vary by state. Some states add extra money to the federal SSI amount, and those state supplements may have different COLA rules.

If you are receiving benefits as a family — for example, your children receive benefits based on your work record — each family member's benefit increased by the same 8.7 percent in 2023. Family benefits have a maximum total amount that can be paid to your household, so the increase applies within that limit.

What to expect going forward

Every January, your SSDI payment will be adjusted if there is a COLA for that year. Social Security announces the percentage in October of the previous year. You do not need to do anything — the increase happens automatically in your bank account or on your payment card.

The COLA protects your benefit from losing value as prices rise. Without it, the same monthly payment would buy less food, medicine, and housing each year. The 2023 increase was unusually large because inflation was unusually high, but the system works the same way every year.

Frequently Asked Questions

Do I have to do anything to get the 2023 increase?

No. If you were receiving SSDI in January 2023, the increase was automatic. It appeared in your payment that month. You do not need to contact Social Security or fill out any forms.

What if I started receiving SSDI after January 2023?

Your benefit is calculated based on your work history, not on when you start receiving it. The COLA that was in effect when your benefit begins is already included in your first payment. You will then receive future COLA increases like everyone else.

Will my benefit go up again in 2024?

Yes. Social Security announced a 3.2 percent COLA for 2024, which took effect in January 2024. Every year there is a new COLA based on that year's inflation. The percentage changes, but the increase happens automatically.

How do I find out what my new payment amount is?

Log into your my Social Security account at ssa.gov, or call 1-800-772-1213. Social Security also mails a notice each December showing your new payment amount for January. If you did not receive a notice, you can request one by phone or through your online account.

Does the COLA increase affect Medicare premiums?

Yes, but there is a rule called the Government Pension Offset that protects most SSDI recipients. In most years, your Medicare premium increase cannot be more than your COLA increase, so your take-home payment does not go down. This rule does not explore to everyone, so check your notice or call Social Security if you are unsure.