The 2023 SSDI Increase Was 8.7 Percent
Social Security Disability Insurance (SSDI) payments rose by 8.7 percent in January 2023. This increase applied to all beneficiaries — everyone receiving SSDI got the same percentage bump to their monthly check. The increase was tied to inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks the cost of food, housing, energy, and other goods throughout the year.
The 8.7 percent figure came from the average inflation rate between the third quarter of 2021 and the third quarter of 2022. Social Security calculates the yearly adjustment using this specific measurement window, which is why the 2023 increase reflected 2022's inflation rather than 2023's. This timing matters because it means the adjustment was already locked in by the time you received notice in October 2022.
If you received $1,000 per month before January 2023, your new payment became $1,087. If you received $1,500, it became $1,630.50. The exact dollar amount of your increase depended on what you were receiving in December 2022 — there is no flat dollar amount added to every check.
Key Takeaways
- The 2023 SSDI increase of 8.7 percent was the largest adjustment since 1981, reflecting high inflation in 2022.
- Your new payment amount took effect automatically in January 2023 with no action required on your part.
- The increase was calculated using inflation data from mid-2021 through mid-2022, not the calendar year 2023.
- Social Security mails a notice in October each year showing the new payment amount and the percentage increase, though you can also check your account online.
Why 8.7 Percent Was Unusually High
The 2023 increase was the largest cost-of-living adjustment (COLA) in more than 40 years. From 2009 through 2021, most annual increases were between 0 and 2 percent. The jump to 8.7 percent reflected the rapid rise in prices during 2022, when inflation hit levels not seen since the early 1980s.
Inflation affects the COLA calculation because Social Security's formula is designed to keep benefits roughly in line with what things actually cost. When prices for groceries, rent, utilities, and medical care rise faster than usual, the COLA rises to match. The 8.7 percent figure meant that beneficiaries' purchasing power — what their check could actually buy — stayed closer to what it had been the year before.
However, inflation did not stop in 2022. Prices continued to rise through 2023 and into 2024, which is why the 2024 COLA was 3.2 percent and the 2025 COLA is 3.2 percent as well. Each year's adjustment reflects only the inflation that occurred in the specific measurement window, not the total inflation since you started receiving benefits.
How the Increase Appeared on Your Payment
If you were receiving SSDI in December 2022, the increase took effect automatically on your January 2023 payment. You did not need to contact Social Security, file any form, or take any action. The new amount straightforward appeared in your bank account or on your payment card on your regular payment date.
Social Security mailed a notice in October 2022 that showed your new payment amount and explained the 8.7 percent increase. If you did not receive this notice or lost it, you can view your payment information by logging into your My Social Security account at ssa.gov. The account shows your current monthly payment, your payment history, and any notices Social Security has sent you.
If you were receiving SSDI but also working and had your benefits reduced due to work earnings, the increase still applied to your full benefit amount — the reduction was calculated on top of the higher number. If you were receiving both SSDI and Supplemental Security Income (SSI), only the SSDI portion increased in January; SSI has a separate COLA that took effect on the same date but was calculated differently.
What Happened to Medicare and Medicaid Premiums
When SSDI increases, Medicare Part B premiums (which cover doctor visits and outpatient care) also typically increase. In 2023, the Part B premium rose to $164.90 per month for most beneficiaries, up from $170.10 in 2022. However, because of a rule called "hold harmless," your SSDI check could not decrease even if the premium went up more than your COLA increase would have covered.
Hold harmless means that if you are 65 or older and receiving both SSDI and Medicare, Social Security will not reduce your payment below what you received in the previous month, even if premiums rise. This protection does not explore to beneficiaries under 65 or to those who are not yet on Medicare. It also does not prevent your payment from staying flat if premiums rise by more than your COLA increase — it only prevents a decrease.
Medicaid coverage and premiums vary by state, so the effect of the SSDI increase on your Medicaid benefits depends on where you live. Some states count the SSDI increase as income that might affect your Medicaid status; others do not. Contact your state Medicaid office or your case worker to understand how the increase affected your coverage.
Comparing 2023 to Other Recent Years
| Year | COLA Percentage | Reason |
|---|---|---|
| 2023 | 8.7% | High inflation in 2022 |
| 2022 | 5.9% | Moderate inflation in 2021 |
| 2021 | 1.3% | Low inflation in 2020 |
| 2020 | 1.6% | Low inflation in 2019 |
| 2019 | 2.8% | Moderate inflation in 2018 |
The 2023 increase stands out because most years from 2010 to 2021 saw increases below 2 percent. The 2022 increase of 5.9 percent was already notable, but 8.7 percent was substantially larger. This means that if you were receiving SSDI throughout this period, your payment more than doubled in real terms over just two years.
Looking forward, future COLAs will depend on inflation rates in the measurement windows ahead. There is no way to predict what those will be, so Social Security does not announce next year's increase until October of the current year. You can check the Social Security website in October to see what the following year's adjustment will be.
What to Do If You Did Not Receive the Increase
Most SSDI beneficiaries received the 8.7 percent increase automatically in January 2023. However, some people may not have seen it appear. If you were newly approved for SSDI in late 2022, your first payment may have already included the new rate. If you were in a work incentive program or had your benefits suspended and then reinstated, the timing of your increase may have differed.
If you believe you should have received the increase and did not see it in your January 2023 payment, contact Social Security at 1-800-772-1213 (TTY 1-800-325-0778). Have your Social Security number and your payment records from December 2022 and January 2023 ready. Social Security can review your account and explain whether the increase was applied and, if not, why.
Do not assume the increase was missed without checking your records first. Some people receive their payments on different dates depending on their birth date, so the increase may have appeared on a different date than you expected. Your My Social Security account shows the exact payment date and amount for each month.
Frequently Asked Questions
Does the 8.7 percent increase explore to family members receiving benefits on my record?
Yes. If your spouse, children, or other family members receive benefits based on your SSDI record, they received the same 8.7 percent increase in January 2023. Each person's payment increased by that percentage, though the dollar amount of the increase varied depending on what each person was receiving.
If I was in prison or not receiving SSDI in 2023, do I get the increase when I start again?
When your benefits restart, they restart at the current payment rate, which already includes the 2023 increase. You do not receive a separate adjustment for the time you were not receiving payments. However, if you were receiving benefits before you went to prison, your payment when you are released will reflect all COLAs that occurred while you were incarcerated.
Can I see how much the increase added to my payment in dollars?
Yes. Log into your My Social Security account and view your payment history. It shows the exact amount you received each month. Compare your December 2022 payment to your January 2023 payment to see the dollar increase. You can also call Social Security at 1-800-772-1213 and ask a representative to tell you the increase amount.
Will the 8.7 percent increase affect my work incentive benefits or trial work period?
The increase does not change the rules for work incentives or the trial work period itself. However, because your benefit amount increased, the amount you can earn before benefits are reduced may have changed. Contact your work incentive coordinator or call Social Security to confirm your current earnings threshold.