Yes, SSDI payments increased in 2023 by 8.7 percent

Social Security Disability Insurance (SSDI) payments went up on January 1, 2023. The increase was 8.7 percent across the board for all recipients. This was the largest cost of living adjustment (COLA) in four decades, driven by inflation that year.

The exact dollar amount you received depended on what you were getting paid in December 2022. Someone receiving $1,000 per month would have seen their January 2023 payment jump to $1,087. Someone receiving $1,500 would have received $1,630.50. The Social Security Administration applied the same 8.7 percent multiplier to every individual benefit amount.

This increase happened automatically. You did not need to do anything to receive it. If you were on SSDI in December 2022, the higher amount showed up in your bank account or on your payment card starting January 1, 2023.

Key Takeaways

  • Every SSDI recipient's monthly payment increased by 8.7 percent on January 1, 2023, with no action required on your part.
  • The increase was based on your December 2022 payment amount, multiplied by 1.087.
  • COLA adjustments happen once per year in January and are determined by inflation data from the previous year.
  • The 2023 adjustment was the largest in four decades because inflation was unusually high in 2022.

How the 8.7 percent figure was determined

The Social Security Administration calculates COLA each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index tracks how much prices rise for everyday goods and services across the country. In September 2022, the Social Security Administration looked at how much the CPI-W had changed from the third quarter of 2021 to the third quarter of 2022. That change came to 8.7 percent.

The timing matters: the adjustment announced in October 2022 took effect on January 1, 2023. This means the 2023 COLA reflected inflation that had already happened, not inflation expected to happen in 2023 itself.

Because inflation was exceptionally high in 2022—driven by supply chain disruptions, energy prices, and other factors—the COLA was much larger than in recent years. From 2010 to 2020, most COLA adjustments were between 0 and 2 percent. The 8.7 percent increase in 2023 stood out as unusual.

What changed in your monthly payment

If you were receiving SSDI in December 2022, your January 2023 payment reflected the 8.7 percent increase. The Social Security Administration sent notices to all recipients in October 2022 telling them the new amount they would receive starting January 1.

The increase applied to your primary benefit amount—the base payment you receive each month. If you receive SSDI as a family (for example, if your children also receive benefits on your record), each family member's payment increased by 8.7 percent as well.

The increase also affected other payments tied to your SSDI benefit. If you were receiving Supplemental Security Income (SSI) in addition to SSDI, your SSI payment may have changed too, though SSI has its own separate rules and limits.

Why COLA matters for people on fixed income

SSDI is a fixed income—your benefit amount does not change month to month based on your work or circumstances, the way a paycheck might. Without COLA adjustments, the purchasing power of your benefit would shrink every year as prices rise. A payment that covered your rent, food, and medicine in one year would cover less the next year.

COLA is designed to keep your benefit roughly level with inflation. When inflation is low, COLA is low or sometimes zero. When inflation is high, COLA is high. The 8.7 percent adjustment in 2023 meant that your benefit kept pace with the actual rise in prices you faced.

However, COLA is based on the average inflation experienced by urban wage earners, not on the specific costs faced by people on disability. If your personal expenses—such as medical care or housing—rose faster than the national average, the COLA adjustment may not have fully covered your increased costs.

How 2023 COLA compared to other recent years

The 2023 COLA of 8.7 percent was significantly larger than adjustments in the years when ready before it. In 2022, COLA was 5.9 percent. In 2021, it was 1.3 percent. In 2020, it was 1.3 percent. In 2019, it was 2.8 percent.

Going back further, the only time COLA approached 8.7 percent was in the early 1980s, when inflation was also very high. For most of the 2010s, COLA adjustments were under 2 percent, and in some years there was no adjustment at all.

The 2023 increase reflected the specific economic conditions of 2022, when inflation reached levels not seen in four decades. It did not mean that inflation would remain at that level in 2023 or beyond. COLA for 2024 and later years would be determined by inflation data from their respective years.

When you would have received notice of the increase

The Social Security Administration mailed notices to all SSDI recipients in October 2022 explaining the 8.7 percent increase and showing the new payment amount effective January 1, 2023. If you were receiving payments by direct deposit, the new amount appeared in your account on January 1. If you were receiving a check, the first check at the new amount arrived in early January.

If you did not receive a notice in October 2022, you could have called the Social Security Administration at 1-800-772-1213 to ask about your 2023 payment amount. The notice was important because it showed your new benefit amount and explained why it had changed.

What happens to SSDI payments after 2023

COLA adjustments happen every January, based on inflation data from the previous year. The 2024 COLA, announced in October 2023, was 3.2 percent—lower than 2023 because inflation had cooled. The 2025 COLA, announced in October 2024, was 3.2 percent as well.

Each year's adjustment is independent. A large COLA one year does not mean the next year will be large. The adjustment depends entirely on how much prices rose during the measurement period (July through September of the previous year).

If you are currently on SSDI, you will receive a COLA adjustment each January for as long as you remain on the program, as long as inflation is positive. The amount of that adjustment will vary year to year based on actual inflation.

Frequently Asked Questions

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

No. The increase happened automatically on January 1, 2023. You did not need to contact Social Security, fill out a form, or take any action. If you were receiving SSDI in December 2022, the higher payment appeared in your next deposit or check.

What if I started SSDI after December 2022?

Your initial benefit amount would have been calculated using the 2023 payment rules, which already included the 8.7 percent adjustment. You would not receive a separate increase—the adjustment was already built into your starting amount.

Does the COLA increase affect my Medicare or Medicaid?

An increase in your SSDI payment does not change your Medicare coverage. If you receive Medicaid, the rules vary by state. Some states count your SSDI income toward Medicaid limits, so a higher SSDI payment could affect your Medicaid status. Contact your state Medicaid office to understand how your specific situation works.

Will the 2023 increase affect my taxes?

SSDI benefits are generally not taxable, so the increase itself does not create a tax liability. However, if your total income (including SSDI and other sources) crosses certain thresholds, a portion of your SSDI may become taxable. Consult a tax professional if you have other income sources.

How much will SSDI increase in 2024 and beyond?

COLA adjustments vary year to year based on inflation. The 2024 COLA was 3.2 percent, and the 2025 COLA was also 3.2 percent. Future adjustments will depend on inflation data measured from July through September of each year. There is no way to predict future COLA amounts with certainty.