The 2023 SSDI payment increase was 8.7 percent

In October 2023, Social Security Disability Insurance (SSDI) payments rose by 8.7 percent. This was the largest increase in four decades. The raise took effect with the November 2023 payment, which arrived in most people's accounts on the third of the month.

The increase happened because of a Cost of Living Adjustment (COLA). Social Security calculates COLA each year based on inflation — how much prices for food, housing, medicine, and other necessities went up during the previous 12 months. When inflation is high, COLA is high. In 2023, inflation had been high enough that the adjustment was 8.7 percent instead of the smaller increases of recent years.

This means if you received $1,000 per month in October 2023, your November payment was about $1,087. The exact amount depends on what you were receiving before the increase.

Key Takeaways

  • The 2023 COLA increase of 8.7 percent was the largest in four decades, reflecting high inflation during 2022 and early 2023.
  • The increase took effect automatically in November 2023 — you did not need to do anything to receive it.
  • Your new payment amount appears on your Social Security statement and in your online account at ssa.gov.
  • COLA adjustments happen every year in October and take effect the following November, though the percentage changes based on inflation that year.

Why the 2023 increase was larger than usual

The 8.7 percent increase reflected inflation that occurred between September 2022 and September 2023. During that period, prices for groceries, gas, rent, and medical care rose sharply. Social Security's COLA formula measures this inflation using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks what people actually spend money on.

For comparison, the 2022 COLA was 5.9 percent, and the 2021 COLA was 1.3 percent. The 8.7 percent figure in 2023 was unusual because inflation itself was unusual. In most years, COLA adjustments are smaller — often between 2 and 3 percent.

The increase was automatic. Social Security does not ask you to request it or fill out forms. Everyone receiving SSDI on the benefit roll in October 2023 received the 8.7 percent raise in their November payment.

How to find your new payment amount

You can see your updated payment amount in two places. The first is your Social Security Statement, which you can view online at ssa.gov by logging into your account. The statement shows your current monthly benefit and a record of your earnings history.

The second place is your bank account or payment method. If you receive SSDI by direct deposit, the new amount appeared starting with your November 2023 payment. If you receive a check by mail, the check amount changed in November as well.

You can also call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) to ask about your specific payment amount. Have your Social Security number ready when you call.

What happens to COLA in future years

COLA adjustments occur every year. Social Security announces the new percentage in October, and it takes effect the following November. The amount of the increase depends entirely on inflation during the measurement period — there is no minimum or maximum.

If inflation is low, COLA can be 1 percent or less. If inflation is high, COLA can be 8 percent or higher, as it was in 2023. Some years have had zero COLA when prices actually fell, though this is rare.

You do not need to do anything to receive the annual adjustment. It happens automatically if you are on the SSDI benefit roll in October. The new amount straightforward appears in your November payment.

How COLA affects other benefits and programs

The 8.7 percent COLA increase in 2023 also affected other programs tied to Social Security. Supplemental Security Income (SSI) payments increased by the same percentage. Medicare premiums, copayments, and deductibles also adjusted based on the COLA announcement.

If you receive both SSDI and SSI, both payments increased. If you are a family member receiving benefits on your SSDI record — such as a spouse or child — their payments increased by 8.7 percent as well.

Some state programs that use Social Security payment amounts as a reference point may have adjusted their own payments or thresholds, though this varies by state. If you receive other information programs, check with those programs directly to see if they made changes in response to the COLA increase.

Why COLA matters for people on disability

For people living on a fixed SSDI payment, COLA is one of the few ways that payment keeps pace with the cost of living. Without it, the same monthly check would buy less food, medicine, and housing each year as prices rise.

The 8.7 percent increase in 2023 was significant because it reflected real increases in what things cost. However, COLA is calculated based on the average experience of all workers and retirees, not on the specific expenses of people with disabilities. Some people spend more on medicine or medical equipment than the average person, so even a large COLA may not fully cover their actual cost increases.

COLA also does not account for regional differences. The cost of living in rural areas, small cities, and major metropolitan areas can be very different, but COLA is the same nationwide.

Frequently Asked Questions

Do I have to do anything to get the 2023 COLA increase?

No. The increase happened automatically in November 2023 if you were receiving SSDI in October 2023. You did not need to contact Social Security, fill out forms, or take any action. The new amount straightforward appeared in your payment.

What if I did not see the increase in my November payment?

Contact Social Security at 1-800-772-1213 to report the issue. Have your Social Security number and bank account information ready. If you receive a check by mail, allow extra time for it to arrive. If you use direct deposit, the payment should appear on the third of the month.

Does the COLA increase affect my Medicare or Medicaid?

Medicare premiums and cost-sharing amounts changed in 2024 based on the 2023 COLA. Medicaid rules vary by state, so contact your state Medicaid office to learn how the increase affects your coverage. Some states adjust income limits when COLA changes.

Will there be another COLA increase in 2024?

Yes. Social Security announces a new COLA percentage every October, based on inflation from the previous 12 months. The 2024 COLA was 3.2 percent, which took effect in November 2024. The amount of future increases depends on inflation in each year.

How is COLA calculated, and who decides it?

Social Security calculates COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation. The calculation is automatic — there is no decision-making involved. The formula compares prices from September of one year to September of the next year.