Your SSDI check grows in two ways: through the yearly cost of living adjustment, or COLA, and through work incentives that let you earn money without losing benefits

The cost of living adjustment happens automatically every year if Congress approves it. Social Security calculates it based on inflation data and applies the same percentage increase to everyone on SSDI in December. You do not have to do anything — the higher amount straightforward appears in your January payment.

The second way to increase what you receive is less known but often more powerful: work incentives let you earn wages while staying on SSDI, which means your total income goes up even though your SSDI check itself stays the same. Some people use work incentives to earn enough that they no longer need SSDI at all, while others use them to supplement a smaller check.

This article covers both routes and explains which one applies to your situation.

Key Takeaways

  • COLA increases happen automatically in January if Congress approves them, and the percentage is the same for everyone on SSDI.
  • Your SSDI payment amount is set by your work history and age when you started receiving benefits, and COLA is the only way to raise the base check itself.
  • Work incentives such as the Student Earned Income Exclusion and Impairment Related Work Expenses let you earn money without losing SSDI benefits dollar-for-dollar.
  • The Plan to Achieve Self-Support (PASS) lets you set aside income and resources for a specific work goal without affecting your SSDI payment.
  • If you return to work and earn above the substantial gainful activity threshold, your SSDI will pause but you keep Medicare coverage and can restart benefits if work does not last.

Why your SSDI check amount is what it is

Social Security calculates your SSDI payment based on your primary insurance amount, or PIA. This is determined by how much you earned during your working years before you became disabled — specifically, your highest 35 years of earnings. The older you were when you became disabled, the higher your PIA tends to be, because you had more years to build up earnings history.

Once Social Security sets your PIA, that base amount does not change unless you go back to work and earn enough to recalculate it upward. COLA is the only automatic increase to the check itself. This is why understanding work incentives matters: if your current check is too small, earning money through work incentives is often the fastest way to increase your total monthly income.

How COLA increases work and when they happen

Every October, Social Security announces whether there will be a COLA for the following year. The increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, which measures inflation. If inflation has occurred, Congress approves a COLA percentage, and that same percentage applies to all SSDI payments starting in January.

You will see the new amount in your January payment. Social Security also mails a notice in December telling you the exact dollar increase. The COLA percentage varies year to year — some years it is less than 1 percent, other years it has been 8 percent or higher. You cannot predict it in advance, and you cannot request a larger increase.

If there is no inflation, there is no COLA that year. This has happened three times since 2000. Your payment stays the same until the next year's announcement.

Work incentives that let you earn without losing SSDI

Social Security offers several work incentives designed to let you test your ability to work without when ready losing SSDI. These are the most commonly used:

Trial Work Period lets you work and earn any amount for nine months without affecting your SSDI check. The nine months do not have to be consecutive. During this time, you keep your full payment and your Medicare coverage. After the trial work period ends, Social Security looks at whether you earned above the substantial gainful activity threshold (in 2024, that is $1,550 per month for non-blind individuals, though this amount changes yearly). If you did, your SSDI pauses, but you can restart it if the work does not last.

Student Earned Income Exclusion applies if you are under age 22 and a full-time student. You can earn up to a monthly limit (in 2024, $8,230 per year) without it affecting your SSDI check. This is useful if you are in school and working part-time.

Impairment Related Work Expenses

Plan to Achieve Self-Support, or PASS, is a written plan you create with a work incentives counselor. It lets you set aside income and resources for a specific work goal — such as paying for training, buying tools, or covering transportation to a new job — without those amounts counting against your SSDI. PASS is complex and requires Social Security approval, but it can be powerful if you are working toward a specific outcome.

How to use work incentives to increase your income

Start by contacting your local Work Incentives Planning and information project, or WIPA. WIPA counselors are free and trained specifically in how work incentives work. They can review your situation and tell you which incentives explore to you. You can find your local WIPA at askjan.org or by calling 1-866-968-WIPA.

Alternatively, contact a Protection and Advocacy for Beneficiaries of Social Security project, or PABSS. PABSS also offers free work incentives counseling and can help you understand the rules.

Before you start work, tell your WIPA or PABSS counselor about the job. They will walk you through which incentives explore, how much you can earn, and what paperwork you need to file with Social Security. Some incentives require you to report your earnings to Social Security; others are automatic. Getting this right before you start work prevents overpayments and keeps your benefits intact.

What happens if you earn above the substantial gainful activity threshold

If you work and earn more than the substantial gainful activity threshold (SGA) for a full month, your SSDI payment stops for that month. In 2024, SGA is $1,550 per month for non-blind individuals and $2,590 for blind individuals. These amounts increase yearly.

Stopping is not the same as losing SSDI permanently. You keep your Medicare coverage for at least 93 months (about 7.5 years) after your trial work period ends, even if you are not receiving a payment. If your work does not last — because you become unable to work, lose the job, or reduce your hours — you can request that your SSDI restart. The process is called expedited reinstatement and must be requested within five years of when your payment stopped.

This safety net is why work incentives exist: Social Security wants you to test whether you can work without the fear that a failed attempt will cost you your benefits permanently.

Other ways your SSDI check can change

Beyond COLA and work, your payment can increase if you have dependents who are not yet receiving benefits on your record. If you have a child under 19 (or under 23 if a full-time student) or a spouse caring for your child, they may be able to receive a payment based on your SSDI. This does not increase your own check, but it increases the total your household receives.

Your payment can also change if you report a change in your living situation. If you move in with someone who pays for your food or housing, your payment may decrease. If you move out and start paying your own way, it may increase. These changes are called in-kind support and maintenance adjustments, and they are complex — contact Social Security directly if your living situation changes.

Frequently Asked Questions

Can I work part-time and keep my full SSDI check?

Yes, during your nine-month trial work period. After that, it depends on how much you earn. If you earn below SGA ($1,550 per month in 2024), you keep your full check. If you use work incentives like IRWE or PASS, you may be able to earn more and still keep your check because those costs reduce your countable income.

Does COLA happen every year?

COLA happens most years, but not always. If there is no inflation, there is no COLA. This has happened three times since 2000. Social Security announces in October whether there will be a COLA for the following January.

What if I disagree with my COLA amount?

COLA is calculated by formula and applies to everyone. You cannot request a different percentage. However, if you believe Social Security made an error in calculating your base payment amount, you can request a recalculation by contacting your local Social Security office.

Do I have to report my earnings to Social Security if I use work incentives?

It depends on the incentive. Trial work period earnings must be reported. IRWE and PASS require documentation but not monthly reporting. A WIPA or PABSS counselor will tell you exactly what to report and when before you start work.

If my SSDI stops because I earned too much, can I get it back?

Yes, through expedited reinstatement. You have five years from when your payment stopped to request that it restart if you can no longer work or your earnings drop below SGA. You do not have to reapply or go through the approval process again.