The 2025 SSDI COLA is 2.5 percent

Social Security announced in October 2024 that the 2025 Cost of Living Adjustment (COLA) for SSDI is 2.5 percent. This means your monthly benefit payment will increase by 2.5 percent starting in January 2025. The exact dollar amount of your raise depends on what you received in December 2024.

For example, if you received $1,200 per month in December 2024, your January 2025 payment will be $1,230 (an increase of $30). If you received $1,500, your new payment will be $1,537.50 (an increase of $37.50). Social Security applies the same 2.5 percent to every SSDI beneficiary, regardless of how much you currently receive.

The 2.5 percent COLA is lower than the 2024 COLA of 3.2 percent, which reflected higher inflation in 2023. COLA amounts change each year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published by the Bureau of Labor Statistics.

Key Takeaways

  • Your SSDI payment will increase by 2.5 percent in January 2025, with the new amount appearing in your bank account or check on the third of the month.
  • The exact dollar increase depends on your current payment amount — a beneficiary receiving $1,000 per month will see a $25 raise, while someone receiving $2,000 will see a $50 raise.
  • COLA is automatic; you do not need to contact Social Security or take any action to receive the increase.
  • If you work and earn income, the 2.5 percent increase may affect your Substantial Gainful Activity (SGA) limit and work incentive calculations for 2025.
  • The 2025 COLA also applies to Supplemental Security Income (SSI) and to the family members of deceased workers who receive survivor benefits.

When the increase appears in your account

The 2025 COLA increase takes effect on January 1, 2025, but the timing of when you actually receive the money depends on your payment schedule. Most SSDI beneficiaries receive payments on the third, fourth, or fifth Wednesday of each month, or on the third of the month if you receive a check.

Your first payment with the 2.5 percent increase will arrive in early January 2025. Social Security does not send a separate notice for COLA increases — the new amount straightforward appears in your regular deposit or check. If you want to confirm the exact amount before January, you can log into your my Social Security account online at ssa.gov and view your payment history.

How the 2025 COLA affects your work incentives

If you work or plan to return to work, the 2.5 percent COLA affects two important thresholds for 2025: the Substantial Gainful Activity (SGA) limit and the Trial Work Period (TWP) monthly earnings amount.

The 2025 SGA limit for non-blind workers is $1,550 per month (up from $1,550 in 2024 — the SGA limit did not change because it is tied to a different inflation measure than COLA). However, the TWP monthly earnings threshold, which is tied to COLA, will increase. In 2024, you could earn up to $1,090 per month during your TWP without affecting your benefits; in 2025, that amount increases to $1,117 per month.

If you are in your Extended may be able to access Period (EEP) or using Impairment Related Work Expenses (IRWE), those calculations may also shift slightly based on your new benefit amount. Contact your local Social Security office or a work incentives planning and information (WIPA) project if you need help understanding how the 2025 COLA affects your specific situation.

COLA and your Medicare premiums

Most SSDI beneficiaries are automatically enrolled in Medicare Part A (hospital insurance) at age 65. If you are enrolled in Medicare Part B (medical insurance) or Part D (prescription drug coverage), your premiums may change in 2025, but the increase is separate from your COLA raise.

Medicare Part B premiums are set by the Centers for Medicare & Medicaid Services (CMS) and are announced in the fall. For 2025, the standard Part B premium is $174.70 per month (up from $164.90 in 2024). However, Social Security has a hold-harmless provision that protects most beneficiaries: if your Part B premium increase would reduce your net SSDI payment, Social Security holds your Part B premium at the 2024 level instead. This means your 2.5 percent COLA raise will not be eaten up by a larger Medicare premium.

If you are on Medicaid as well as Medicare, your state Medicaid program may have its own rules about how COLA affects your coverage or cost-sharing. Contact your state Medicaid office to confirm.

COLA and Supplemental Security Income (SSI)

If you receive SSI in addition to SSDI, or if you receive only SSI, the 2.5 percent COLA also applies to your SSI payment. The SSI federal benefit rate (FBR) for 2025 is $943 per month for an individual and $1,415 for a couple (up from $917 and $1,375 in 2024).

Some states add a state supplement to the federal SSI amount. If your state does, the state supplement may or may not increase with COLA — that depends on your state's law. Contact your state SSI office to learn whether your state supplement will increase in 2025.

How COLA is calculated each year

Social Security calculates COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) published by the Bureau of Labor Statistics. Specifically, Social Security compares the average CPI-W for the third quarter (July, August, September) of the current year to the average CPI-W for the third quarter of the previous year. If there is an increase, that percentage becomes the COLA for the following year.

For 2025, the CPI-W increased 2.5 percent from the third quarter of 2023 to the third quarter of 2024. This reflects inflation in housing, food, transportation, and other costs that workers actually pay. COLA is never negative — if inflation is flat or negative, COLA stays at zero and no one's benefit decreases.

Congress cannot change the COLA formula or the amount of the increase once it is announced. The calculation is automatic and set by law. However, Congress can and has changed the COLA formula itself in the past, though no change is currently proposed.

What to do if you do not see the increase

If your January 2025 payment does not include the 2.5 percent increase, contact Social Security when ready. Call the national SSDI customer service line at 1-800-772-1213 (TTY 1-800-325-0778) or visit your local Social Security office. Have your Social Security number and a recent payment statement ready.

Delays or errors in COLA payments are rare, but they can happen if your account has a hold, if you are in a work incentive period that suspends benefits, or if there is a clerical error in your file. Social Security can usually resolve the issue within a few business days.

Frequently Asked Questions

Will the 2.5 percent increase affect my Medicaid coverage?

It depends on your state. Some states use your SSDI payment amount to determine Medicaid may be able to access and cost-sharing. A 2.5 percent increase might push you slightly over an income limit in a few states, but most states have protections that prevent a COLA increase alone from ending Medicaid coverage. Contact your state Medicaid office to confirm how the increase affects you.

Do family members who receive benefits on my record also get the 2.5 percent increase?

Yes. If your spouse, children, or parents receive benefits based on your work record, they each receive a 2.5 percent increase to their own payment in January 2025. The increase is automatic and applies to all family beneficiaries.

What if I am receiving SSDI and also collecting unemployment or workers' compensation?

The 2.5 percent COLA increase to your SSDI payment is separate from any other benefits you receive. However, if you are receiving workers' compensation or public disability benefits, Social Security may reduce your SSDI payment under the Government Pension Offset or Windfall Elimination Provision. The 2.5 percent increase applies to your SSDI amount before any reduction is calculated.

Can I request a larger increase if 2.5 percent does not cover my actual living expenses?

No. COLA is set by law and applies uniformly to all beneficiaries. You cannot request a larger increase. However, if your living expenses have increased significantly, you may be able to work part-time using SSDI work incentives, or you may be able to access other information programs like SNAP, LIHEAP, or local emergency aid.

When will Social Security announce the 2026 COLA?

Social Security announces the COLA for the following year in October of each year. The 2026 COLA will be announced in October 2025 and will take effect in January 2026. The amount depends on inflation data collected through September 2025.