The 2023 SSDI increase 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 increase in four decades, driven by inflation that had risen sharply throughout 2022.

The actual dollar amount of your increase depended on what you were receiving in December 2022. Someone getting $1,000 per month would have received an additional $87 per month starting January 2023. Someone getting $1,500 would have received an additional $130.50. The increase was automatic — you did not need to do anything to receive it.

This increase applied to all SSDI recipients, including disabled workers, their spouses, and their children. It also applied to Supplemental Security Income (SSI) recipients, a separate program for people with disabilities who have very low income and resources.

Key Takeaways

  • The 2023 SSDI increase was 8.7 percent, the largest raise in four decades, and took effect in January 2023.
  • The increase was automatic for all current SSDI recipients — you received it without filing anything or contacting Social Security.
  • Your specific dollar increase depended on your payment amount in December 2022, calculated by multiplying your benefit by 0.087.
  • Cost of living adjustments happen once per year, announced in October and taking effect the following January, based on inflation data from the previous months.

Why the increase was so large in 2023

The Social Security Administration calculates the annual increase using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across the economy. When inflation rises, the cost of living adjustment (COLA) rises with it.

Throughout 2022, inflation reached levels not seen since the early 1980s. Prices for food, housing, energy, and transportation all climbed significantly. The CPI-W reflected these changes, resulting in the 8.7 percent adjustment announced in October 2022.

This was unusual. Most years, COLA increases range from 1 to 3 percent. The 2023 increase of 8.7 percent was the largest since 1981, when inflation had also spiked. In the years when ready before 2023, increases had been much smaller — 1.3 percent in 2022, 1.7 percent in 2021, and 0.3 percent in 2020.

How the increase showed up in your payment

If you were receiving SSDI in December 2022, your January 2023 payment was automatically larger. You would have seen the increase reflected in your bank account or check without taking any action.

Social Security mailed notices to all beneficiaries in December 2022 explaining the increase and showing the new payment amount. If you received direct deposit, the larger amount straightforward appeared on your regular payment date. If you received a paper check, the check amount was higher.

The increase applied to your entire benefit amount going forward. If you were also receiving Medicare, your Part B premium was deducted from your benefit as usual, but the deduction was calculated on your new, higher amount.

COLA increases vary from year to year

The 8.7 percent increase in 2023 was specific to that year. Each January, SSDI payments adjust based on inflation from the previous months, so the percentage changes annually.

Social Security announces the new COLA percentage in October, effective the following January. This means the 2024 COLA was announced in October 2023, the 2025 COLA will be announced in October 2024, and so on. The announcement is public — you can find it on the Social Security Administration website.

In years when inflation is low, the COLA increase is small or sometimes zero. In 2010, 2011, and 2016, there was no COLA increase at all because inflation was flat or negative. In other years, increases have ranged from less than 1 percent to around 3 percent. The 8.7 percent in 2023 remains an outlier.

What the increase meant for your budget

An 8.7 percent increase in SSDI income was substantial, but it did not necessarily mean your purchasing power increased by 8.7 percent. The increase was designed to keep pace with inflation, not to make you wealthier than you were before inflation rose.

If inflation had driven up the cost of rent, food, and utilities by 8.7 percent, then the increase brought your benefit back to roughly where it had been in real terms. However, inflation did not affect all costs equally — some expenses rose faster than others, and your personal situation determined whether the increase fully covered your increased costs.

For people on fixed incomes like SSDI, COLA increases are important because without them, inflation would gradually erode the value of your benefit. The increase helped prevent that erosion.

How COLA affects other benefits tied to SSDI

If you were receiving benefits as a spouse or child of an SSDI recipient, your payment also increased by 8.7 percent in January 2023. The increase applied to all family members receiving benefits on the same worker's record.

If you were receiving Supplemental Security Income (SSI) in addition to or instead of SSDI, that payment also increased by 8.7 percent. SSI is a separate program for people with disabilities, blindness, or age 65 and older who have very low income, and it receives the same COLA adjustment as SSDI.

If you were receiving both SSDI and SSI — a situation called "concurrent benefits" — both payments increased. Social Security would have sent you a notice explaining the new amounts for each program.

Frequently Asked Questions

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

No. The increase was automatic for all SSDI recipients. You received it without filing anything, contacting Social Security, or taking any action. Social Security mailed a notice in December 2022 showing your new payment amount, but that was informational only.

What if I didn't receive the full 8.7 percent increase?

If your increase was smaller than 8.7 percent, it may have been because you started receiving SSDI partway through 2022, or because your benefit was affected by other rules (such as government pension offsets for certain government employees). Contact Social Security to ask about your specific situation.

Will SSDI increase by 8.7 percent again in 2024?

No. The 2024 COLA was announced in October 2023 and was 3.2 percent, much smaller than 2023. Each year's increase depends on inflation during that specific period, so the percentage changes annually.

How do I find out what next year's COLA increase will be?

Social Security announces the COLA percentage every October on its official website (ssa.gov). You can also call Social Security at 1-800-772-1213 to ask about the current year's adjustment.