The 2023 SSDI raise was 8.7 percent

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

The actual dollar amount of your raise depended on what you were receiving before January 2023. Someone getting $1,000 per month would have received an $87 raise. Someone getting $1,500 would have received $130.50 more. Social Security sent notices in December 2022 showing the new payment amount starting in January.

This raise happened because of the Cost of Living Adjustment (COLA) formula, which ties SSDI payments to inflation. When prices rise faster than usual, COLA raises payments to help recipients keep up with the cost of food, housing, medicine, and other necessities.

Key Takeaways

  • The 2023 COLA raised SSDI payments by 8.7 percent for everyone on the program, with the increase taking effect in January 2023.
  • Your specific raise in dollars depended on your payment amount before the increase — a higher payment meant a larger dollar raise.
  • Social Security mailed notices in December 2022 showing your new payment amount, and you did not have to do anything to receive the raise.
  • COLA adjustments happen every year based on inflation data from the previous year, so the percentage changes year to year.

Why the 2023 raise was larger than usual

The 8.7 percent raise was unusual because inflation in 2022 was unusually high. COLA is calculated using the Consumer Price Index (CPI), which measures how much prices changed for everyday items over a 12-month period. In 2022, prices rose faster than they had in 40 years, so the COLA formula produced a much larger adjustment than the typical 1 to 3 percent.

The Social Security Administration does not choose the COLA percentage — it is set by law based on the CPI data. Social Security straightforward announces what the raise will be and applies it automatically to all SSDI payments in January.

How the 2023 raise affected your benefits

If you were receiving SSDI in January 2023, your payment increased automatically. You did not have to contact Social Security, submit paperwork, or take any action. The new amount appeared in your bank account or check starting with the January payment.

If you were receiving SSDI and also receiving Supplemental Security Income (SSI), both payments increased. If you were receiving SSDI as a family — meaning your children or spouse were also on your SSDI record — their payments increased by the same 8.7 percent as well.

The raise also affected the amount of money you could earn before your SSDI payments were reduced. Social Security adjusts the "substantial gainful activity" threshold each year, which is the income level that can trigger a work incentive review. In 2023, this threshold was higher than it had been in 2022, giving you more room to work without when ready affecting your benefits.

What happened if you started SSDI after 2023

If you began receiving SSDI after January 2023, your first payment was based on the new, higher payment amounts that resulted from the 8.7 percent raise. You did not receive the raise itself — you straightforward started at the post-raise level.

This matters because your SSDI payment amount is calculated based on your earnings history, not on a fixed dollar amount. The formula that determines your payment uses a "primary insurance amount," which is adjusted each year. The 2023 COLA raised that primary insurance amount for everyone, so new beneficiaries in 2023 and beyond started with higher payments than someone who began SSDI in 2022 would have.

How COLA works in years after 2023

The 2023 raise of 8.7 percent was specific to that year. Each January, Social Security announces a new COLA percentage based on inflation data from the previous year. In 2024, the COLA was 3.2 percent. In 2025, it was 2.5 percent. These percentages change year to year depending on how much prices rose.

If inflation is low, COLA can be very small — sometimes less than 1 percent. If inflation is high again, COLA can be larger. Social Security publishes the upcoming year's COLA in October, so you know what your raise will be before January arrives.

Frequently Asked Questions

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

No. The raise was automatic. Social Security applied the 8.7 percent increase to everyone on SSDI starting in January 2023. You received a notice in December 2022 showing your new payment amount, but you did not have to contact Social Security or submit any forms.

What if I thought my 2023 payment was wrong?

You could contact Social Security to ask them to review your payment. Call 1-800-772-1213 or visit your local Social Security office with the notice you received in December 2022. They can explain how your specific amount was calculated and correct any errors.

Does the 2023 raise affect how much I can earn before my benefits are reduced?

Yes. Social Security adjusts the earnings threshold each year, and the 2023 threshold was higher than 2022. However, the exact threshold depends on whether you are under or over full retirement age and whether you are still working. Contact Social Security to learn your specific threshold.

If I was in prison during 2023, did I still get the raise?

SSDI payments are suspended while you are in prison. If your benefits were suspended in 2023, they would not have increased. When you are released and your benefits resume, they will be at the current payment level, which includes all COLA raises that happened while you were incarcerated.