The 2023 SSDI payment increase
In 2023, the average SSDI payment was $1,349 per month, but your actual payment depends on your work history and earnings record, not on the average. The Social Security Administration (SSA) calculates your payment using a formula based on your highest 35 years of earnings. In October 2022, all SSDI payments increased by 8.7 percent — the largest cost-of-living adjustment (COLA) in 40 years — which is why 2023 payments were notably higher than 2022.
Your specific payment amount was set when SSA approved your claim and is based on the Primary Insurance Amount (PIA) calculated from your earnings record. If you worked steadily at higher wages, your payment is higher. If you had lower earnings or gaps in your work history, your payment is lower. SSA does not adjust your payment based on how much you need or what other income you have — only on what you earned while working.
Key Takeaways
- Your 2023 SSDI payment was determined by your earnings history, not by a fixed amount everyone receives.
- The 8.7 percent COLA increase in October 2022 raised all payments, but the increase was the same percentage for everyone, not the same dollar amount.
- SSA calculates your payment using your highest 35 years of earnings, adjusted for inflation up to age 60.
- Your payment amount does not change based on how much money you have or what other income you receive, only when SSA announces a new COLA.
How SSA calculates your individual payment
SSA uses your Social Security earnings record to calculate a number called your Primary Insurance Amount (PIA). This is the base payment SSA uses to determine what you receive each month. To find your PIA, SSA takes your highest 35 years of earnings, adjusts them for inflation using a formula called wage indexing, and then applies a bend-point formula that replaces a higher percentage of lower earnings than higher earnings.
The bend-point formula means that if you earned very little, SSA replaces a larger percentage of those earnings. If you earned a lot, SSA replaces a smaller percentage. For 2023, the bend points were $1,115 and $6,721 — meaning earnings up to $1,115 per month were replaced at 90 percent, earnings between $1,115 and $6,721 were replaced at 32 percent, and earnings above $6,721 were replaced at 15 percent. These bend points change each year.
If you did not work for 35 years, SSA counts the missing years as zero, which lowers your average. If you worked more than 35 years, SSA drops your lowest-earning years and uses only the highest 35. You can view your own earnings record by creating an account at ssa.gov and checking your Social Security Statement.
Why your 2023 payment might differ from what you expected
Many people assume SSDI payments are a fixed amount or that everyone receives the same payment. Neither is true. Your payment reflects your individual work history. Someone who worked 40 years at high wages will receive substantially more than someone who worked 20 years at lower wages, even if both are approved for SSDI in the same month.
If you received a notice from SSA showing your 2023 payment amount, that number is based on your specific earnings record as of the date SSA processed your claim. If you believe the amount is wrong — for example, if you think SSA missed some years of earnings or miscalculated your record — you can request a detailed earnings statement from SSA and ask them to review it. Errors do happen, especially if you worked under a different name or had unreported income.
Another reason your payment might seem low is if you began receiving SSDI before your full retirement age. If you were approved for SSDI and later switched to retirement benefits at full retirement age, your payment may have increased. Conversely, if you continued working while receiving SSDI, your payment may have been reduced under the earnings test (though this applies mainly to people under full retirement age).
The difference between SSDI and SSI payments in 2023
SSDI and Supplemental Security Income (SSI) are separate programs with different payment structures. SSDI is based on your work history; SSI is a needs-based program for people with low income and resources. In 2023, the maximum SSI payment was $914 per month for an individual, but most SSDI recipients received more than that because SSDI is not capped at a maximum amount.
Some people receive both SSDI and SSI — this is called concurrent receipt. If your SSDI payment is very low (because you had a short work history or low earnings), SSA may top it up with SSI to bring you to the SSI federal benefit rate. The rules for SSI include resource limits ($2,000 for an individual in 2023) and income limits, whereas SSDI has no resource limit and no income limit once you are approved.
How COLA adjustments work and when they take effect
Each year, SSA announces a cost-of-living adjustment (COLA) based on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The COLA is announced in October and takes effect the following January. In 2023, the COLA was 8.7 percent, meaning all SSDI payments increased by 8.7 percent starting in January 2023.
The COLA is the same percentage for everyone, but the dollar increase varies. If your 2022 payment was $1,000, an 8.7 percent increase meant you received $87 more per month in 2023. If your payment was $2,000, you received $174 more. SSA applies the COLA automatically — you do not need to request it or reapply.
In years when inflation is low, the COLA can be as small as 1 or 2 percent. In years when inflation is high, it can exceed 8 percent. There is no minimum COLA, but there is also no year with zero COLA — if inflation is negative (deflation), SSA still does not reduce payments below the prior year amount.
What your 2023 payment means for Medicare and Medicaid
Your SSDI payment amount affects what you pay for Medicare Part B and Part D premiums. In 2023, if your SSDI payment was above a certain threshold (called the Income-Related Monthly Adjustment Amount, or IRMAA threshold), you paid higher premiums. For 2023, the thresholds were based on your modified adjusted gross income from two years prior (2021 tax year), so your 2023 premiums reflected your 2021 income, not your 2023 SSDI payment.
For Medicaid, the rules vary by state. Some states use your SSDI payment amount to determine Medicaid may be able to access; others do not. If you receive both SSDI and Medicaid, your state's Medicaid program should have told you the income limit. Your SSDI payment does not affect your Medicaid may be able to access in most states, but it may affect what you pay for cost-sharing (copayments and deductibles).
Frequently Asked Questions
Is the 2023 SSDI payment amount the same for everyone?
No. Each person's payment is based on their individual earnings record. The average was $1,349 per month in 2023, but payments ranged from under $100 per month (for people with very limited work history) to over $3,800 per month (for people with high lifetime earnings). The 8.7 percent COLA increase applied to everyone, but the dollar amount of the increase depended on what you were already receiving.
Can I find out what my 2023 SSDI payment should have been?
Yes. Log into your Social Security account at ssa.gov, or call SSA at 1-800-772-1213 to request a detailed earnings statement and benefit calculation. SSA will show you the earnings record they used and the formula they applied. If you spot an error — such as missing years of earnings or a name change that was not recorded — you can ask SSA to correct it.
Why did my 2023 payment increase if I did not do anything?
The 8.7 percent COLA increase in January 2023 raised all SSDI payments automatically. You did not need to request it or reapply. SSA applies the COLA each January based on inflation from the prior year. If you also had a birthday in 2023 and reached full retirement age, your payment may have increased further if you were still receiving SSDI.
Does my SSDI payment count as income for taxes?
SSDI payments are not taxable income for federal tax purposes in most cases, but they may affect whether you have to file a tax return and whether other income you receive is taxable. If you have other income (such as wages from work or interest), you may owe taxes. The IRS has a worksheet to determine if your SSDI is taxable; SSA can also provide guidance.