The 2023 SSDI raise was 8.7 percent

In October 2022, the Social Security Administration announced that SSDI payments would increase by 8.7 percent starting in January 2023. This was the largest cost-of-living adjustment (COLA) in four decades. The raise applied to everyone receiving SSDI, as well as to people on Social Security retirement and Supplemental Security Income (SSI).

The 8.7 percent figure came from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across the economy. Social Security calculates COLA each year based on how much prices rose from the third quarter of one year to the third quarter of the next. In 2023, prices had risen sharply enough to trigger this substantial adjustment.

What this meant in dollars depended on your individual payment amount. Someone receiving $1,000 per month in December 2022 would receive $1,087 per month starting in January 2023. Someone receiving $1,500 would receive $1,630.50. The exact raise varied by person because it was a percentage, not a flat amount.

Key Takeaways

  • The 2023 COLA of 8.7 percent was the largest increase in four decades, driven by higher inflation throughout 2022.
  • Your new payment amount in January 2023 was your December 2022 amount multiplied by 1.087.
  • The raise applied automatically to all SSDI recipients—you did not have to do anything to receive it.
  • COLA amounts change every year based on inflation, so the 2024 raise was different from 2023, and future years will vary as well.

Why 2023 had such a large raise

Inflation spiked in 2022 after years of historically low price increases. The cost of food, energy, housing, and transportation all rose sharply. When the Social Security Administration measured inflation from July 2021 to July 2022, they found prices had climbed 8.2 percent in that single year—far above the typical annual increase.

COLA is designed to keep disability payments from losing purchasing power as prices rise. Without it, someone receiving $1,000 per month would be able to buy less and less each year. The 8.7 percent adjustment in 2023 was meant to restore what recipients had lost to inflation during 2022.

This was unusual. In most years, COLA is between 1 and 3 percent. From 2009 to 2020, there were several years with no COLA at all because inflation was so low. The 2023 raise stood out because inflation itself was unusually high.

How the raise appeared in your payment

If you were receiving SSDI in December 2022, your January 2023 payment was automatically higher. You did not need to contact Social Security, submit paperwork, or do anything else. The raise was built into the system.

Social Security mailed notices to all SSDI recipients in December 2022 showing the new payment amount. If you received direct deposit, the higher amount straightforward appeared in your account on your regular payment date in January. If you received a check, the check amount was higher.

The raise also affected any family members receiving benefits on your record. If your child or spouse was receiving benefits based on your SSDI, their payment increased by the same 8.7 percent.

What happened to Medicare and Medicaid

The SSDI raise did not directly change your Medicare or Medicaid coverage. If you were enrolled in Medicare Part B (medical insurance), your premium was deducted from your SSDI payment just as before. However, Social Security has a rule called the "hold harmless" provision that protects most beneficiaries: if your Medicare Part B premium increased, the increase could not reduce your net SSDI payment below what you received in the previous month.

Medicaid coverage continued based on your state's rules. Some states tie Medicaid to SSDI income limits, so a higher SSDI payment could theoretically affect your Medicaid status, but this was rare and depended entirely on your state's specific policies.

How COLA works in other years

The 2023 COLA of 8.7 percent was specific to that year. Each January, Social Security announces a new COLA based on inflation from the previous year. In 2024, the COLA was 3.2 percent. In 2025, it was 2.5 percent. These numbers change because inflation changes.

If inflation is very low or negative, COLA can be zero or close to it. This happened in 2010, 2011, and 2016, when beneficiaries received no raise at all. Conversely, if inflation spikes again, COLA could be large again—though there is no way to predict this in advance.

Social Security announces the new COLA in October each year, and it takes effect the following January. You can find the current year's COLA on the Social Security Administration website or in the notice they mail to you in December.

What the 2023 raise meant for your budget

An 8.7 percent raise sounds substantial, but whether it felt substantial depended on your expenses. If your rent, food, and utilities had all risen by 8.7 percent or more during 2022, the raise straightforward kept you even. If they had risen less, the raise gave you a small cushion.

For many SSDI recipients, the 2023 raise was meaningful because it was the first large adjustment in years. People who had received no COLA from 2009 to 2015 suddenly saw a significant increase. However, it did not reverse the cumulative effect of years of low or zero raises during the period when inflation was low.

If you were struggling with expenses, the raise alone was unlikely to solve budget problems. Many SSDI recipients also receive Supplemental Security Income (SSI), food information, housing vouchers, or other support. The COLA raise affected SSDI and SSI equally, but it did not change other programs.

Frequently Asked Questions

Did I have to do anything to get the 2023 raise?

No. The raise was automatic. Social Security applied it to all SSDI payments starting in January 2023. You received a notice in December 2022 showing your new amount, but you did not need to contact them or submit any forms.

What if I started receiving SSDI after January 2023?

Your first payment would already include the 2023 COLA. You would not receive a separate raise later. COLA is built into the payment amount Social Security calculates for you when your benefits begin.

Does COLA explore to SSI as well as SSDI?

Yes. Supplemental Security Income (SSI) recipients received the same 8.7 percent raise in January 2023. COLA applies to SSDI, SSI, and Social Security retirement benefits all at the same time.

Will there be another raise in 2024 or 2025?

Yes, but the amount varies each year. Social Security announces a new COLA every October for the following January. The 2024 COLA was 3.2 percent, and the 2025 COLA was 2.5 percent. Future years depend on inflation rates, which cannot be predicted in advance.

Can I find out what my payment was before the raise?

Yes. Your Social Security statement or your online account at ssa.gov shows your payment history month by month. You can see what you received in December 2022 and compare it to January 2023 to confirm the 8.7 percent increase was applied correctly.