What the 2024 COLA increased SSDI payments by

The 2024 Cost of Living Adjustment (COLA) increased SSDI monthly payments by 3.2 percent. This was the adjustment announced in October 2023 and applied to all benefit payments starting in January 2024. The 3.2 percent increase was smaller than the 8.7 percent increase from 2023, which reflected lower inflation in 2023 compared to 2022.

The actual dollar amount of your increase depends on what you were receiving in December 2023. If you got $1,000 per month, your January 2024 payment became $1,032. If you got $1,500, it became $1,548. Social Security calculates the new amount by multiplying your December benefit by 1.032, then rounding down to the nearest dime.

You did not need to do anything to receive this increase. Social Security applied it automatically to all SSDI beneficiaries on the regular payment schedule. If you receive benefits as a family (your children or spouse also collect on your record), each person's payment increased by the same 3.2 percent.

Key Takeaways

  • The 2024 COLA raised all SSDI payments by 3.2 percent starting January 2024, with no action required on your part.
  • Your new payment amount was calculated by multiplying your December 2023 benefit by 1.032 and rounding down to the nearest dime.
  • COLA increases are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of one year to the third quarter of the next.
  • If you did not see the increase in your January 2024 payment, contact Social Security to report the discrepancy, as errors in explore COLA are rare but do occur.
  • The 2024 increase was lower than 2023 because inflation slowed during 2023 compared to the prior year.

How Social Security calculates the COLA percentage each year

The COLA percentage is not set by Social Security or Congress. Instead, it is determined by a specific measure of inflation called the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Social Security compares the CPI-W for the third quarter of one year (July, August, September) to the CPI-W for the third quarter of the previous year. The percentage change becomes that year's COLA.

For the 2024 COLA, Social Security compared the third quarter of 2022 to the third quarter of 2023. Because inflation had slowed by mid-2023, the increase was 3.2 percent rather than the much larger increases seen in 2021 and 2022. The CPI-W tracks prices for food, housing, transportation, medical care, and other goods and services that wage earners and clerical workers typically buy.

Congress does not vote on the COLA each year. The law that created SSDI (Title II of the Social Security Act) requires Social Security to calculate and explore the adjustment automatically. If inflation is zero or negative, there is no COLA — your payment stays the same. This has happened only three times since 1975.

When you receive the 2024 increase in your payment

The 2024 COLA took effect on January 1, 2024, and appeared in your first payment of that month. If you receive benefits by direct deposit, the money arrived on your regular payment date in January. If you receive a paper check, it was mailed according to your normal schedule. There was no delay or waiting period — the increase was applied to the January payment automatically.

Your payment date depends on your birth date. Social Security pays most beneficiaries on the second, third, or fourth Wednesday of each month. You can check your specific payment date by logging into your my Social Security account online or by calling Social Security at 1-800-772-1213.

If you did not see the 3.2 percent increase in your January 2024 payment, the first step is to verify your December 2023 benefit amount. You can find this on your Social Security statement, which you can view in your my Social Security account. Multiply that amount by 1.032 to see what your January payment should have been. If the actual payment is lower, contact Social Security to report the error.

How COLA affects your work incentives and trial work period

The COLA increase does not change the rules for the Trial Work Period (TWP) or other work incentives available to SSDI beneficiaries. The TWP still allows you to earn any amount in nine months (not necessarily consecutive) without losing benefits. The monthly earnings threshold that triggers a work report remains the same unless Congress changes the law.

However, the COLA does increase the Substantial Gainful Activity (SGA) threshold each year. The SGA threshold is the amount of monthly earnings that Social Security uses to decide whether you are working at a level that suggests you are no longer disabled. For 2024, the SGA threshold for non-blind beneficiaries is $1,550 per month (it varies slightly each year and is higher for blind beneficiaries). If you earn more than this amount in a month, Social Security may review your case to determine whether you can continue receiving benefits.

The COLA increase itself does not change how much you can earn. It only adjusts the SGA threshold upward to account for inflation. If you are working or planning to return to work, you should understand these thresholds before you start, because exceeding them can trigger a medical review.

Comparing the 2024 COLA to previous years

The 2024 COLA of 3.2 percent was significantly lower than the 2023 COLA of 8.7 percent, but higher than the 2022 COLA of 5.9 percent. The variation reflects how inflation changed year to year. In 2022, inflation was very high (reaching 9.1 percent at its peak), so the 2023 COLA was large. By 2023, inflation had cooled, so the 2024 COLA was smaller.

Looking further back, the 2021 COLA was 5.9 percent, the 2020 COLA was 1.3 percent, and the 2019 COLA was 2.8 percent. Before 2021, COLA increases had been modest for many years. The spike in 2022 and 2023 was unusual and reflected the unusual inflation environment of those years.

The COLA is not predictable year to year because it depends on inflation, which changes based on economic conditions. Social Security announces the next year's COLA in October, based on data through September. This means the 2025 COLA will be announced in October 2024 and will take effect in January 2025.

What to do if your payment did not increase or increased incorrectly

If your January 2024 payment was the same as your December 2023 payment, or if it increased by less than 3.2 percent, contact Social Security to report the issue. Errors in explore COLA are uncommon, but they do happen — usually because of a data entry mistake or a hold on your account that you were not aware of.

You can contact Social Security in three ways: call 1-800-772-1213 (TTY 1-800-325-0778), visit your local Social Security office in person, or use your my Social Security account to send a message. Have your Social Security number and your December 2023 benefit statement ready when you call. Explain that you did not receive the 3.2 percent COLA increase and ask them to review your account.

If Social Security finds an error, they will correct it and send you a back payment for the months you were underpaid. This can take several weeks to process. If the error was on their side, you should not have to repay anything — the correction is made at no cost to you.

How COLA affects your Medicare premiums and other deductions

The COLA increase may affect what you pay for Medicare Part B premiums and other deductions from your SSDI check. However, there is a rule called the hold-harmless provision that protects most beneficiaries. Under this rule, your Medicare Part B premium cannot increase by more than the amount of your COLA increase. This means the COLA raise you receive cannot be eaten up entirely by a higher Medicare premium.

In 2024, the hold-harmless provision protected most beneficiaries. However, if you are a higher-income beneficiary (earning above certain thresholds) or if you enrolled in Medicare Part B after you turned 65, you may not be protected by hold-harmless and could see a larger premium increase. You can see your Medicare premium on your Social Security payment statement or in your my Social Security account.

Other deductions from your SSDI check, such as overpayment repayment or child support withholding, are not affected by COLA. These continue at the rate Social Security set previously.

Frequently Asked Questions

Will there be a COLA increase in 2025?

Yes, there will be a 2025 COLA, but the percentage has not been announced yet. Social Security will announce the 2025 COLA in October 2024, based on inflation data through September 2024. The increase will take effect in January 2025. You can check the Social Security website in October 2024 for the official announcement.

Can I request a larger COLA increase or appeal the 3.2 percent?

No. The COLA percentage is set by law based on the CPI-W and is the same for all beneficiaries. You cannot request a different amount, and there is no appeal process for the COLA itself. If you believe your specific payment was calculated incorrectly, you can contact Social Security to have them review your account.

Does the COLA increase affect my Supplemental Security Income (SSI) payments?

The COLA does not directly increase SSI payments. SSI is a different program with different rules. However, SSI has its own annual adjustment called the Federal Benefit Rate increase, which is also tied to inflation. If you receive both SSDI and SSI, you will see increases from both programs, but they are calculated separately.

What if I was not receiving SSDI in December 2023 but started in 2024?

Your first payment will include the 2024 COLA adjustment. Social Security calculates your benefit amount based on your work record and age, then applies the current COLA to that amount. You do not receive a separate "back" COLA payment for months before you started receiving benefits.

How do I know if the 3.2 percent was applied correctly to my payment?

Multiply your December 2023 benefit amount by 1.032. Round down to the nearest dime. That is what your January 2024 payment should have been. You can find your December 2023 amount on your Social Security statement in your my Social Security account or by calling 1-800-772-1213.