SSDI payments went up 3.2 percent in 2024

Yes. The Social Security Administration announced a 3.2 percent cost of living adjustment (COLA) for 2024, which took effect on January 1. This means everyone receiving SSDI got a raise that month—no process or request needed. The increase was smaller than the 8.7 percent jump in 2023, but larger than the 1.3 percent adjustment in 2022.

The 3.2 percent figure applies to all SSDI beneficiaries equally. Your new payment amount depends on what you were receiving before January 1, 2024. If you were getting $1,200 per month, your payment rose to $1,238.40. If you were getting $1,500, it became $1,548. The adjustment is automatic—you do not need to do anything, and you will see the new amount in your January payment.

This COLA also affects Supplemental Security Income (SSI) payments, which follow the same adjustment. It does not affect Medicare premiums in the same way: while your SSDI payment went up 3.2 percent, your Part B premium may have changed separately based on different rules.

Key Takeaways

  • SSDI payments increased 3.2 percent on January 1, 2024, with no action required on your part.
  • The COLA is calculated each year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August, and September of the prior year.
  • Your new payment amount is your old amount multiplied by 1.032, rounded down to the nearest dime.
  • The 3.2 percent adjustment applies to your primary insurance amount, which also affects any family members receiving benefits on your record.
  • COLA changes do not affect your work incentive thresholds, such as the Substantial Gainful Activity (SGA) limit, which are set separately each year.

How the COLA is calculated each year

The COLA percentage is not chosen by the Social Security Administration. Instead, it is set by law based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published by the Bureau of Labor Statistics. Social Security looks at the CPI-W for July, August, and September of the year before the adjustment takes effect. If the average of those three months is higher than the average for the same three months in the previous year, the difference becomes the COLA.

For the 2024 COLA of 3.2 percent, Social Security compared the CPI-W from July–September 2023 to July–September 2022. The 2023 figures were higher, so beneficiaries received a 3.2 percent raise. If inflation had been flat or falling, there would have been no COLA—this happened in 1975, 1982, and 1983, when beneficiaries received no increase.

The COLA is announced in October of each year and takes effect the following January. This means you know your new payment amount before the year ends, and you can plan accordingly. The announcement is made public by the Social Security Administration and reported widely in the news.

What changed for your benefits in 2024

Beyond your payment amount, several other SSDI rules and thresholds changed on January 1, 2024, tied to the COLA or set independently. The Substantial Gainful Activity (SGA) limit—the amount you can earn per month while still receiving SSDI—rose to $1,550 for non-blind beneficiaries and $2,590 for blind beneficiaries. These limits determine whether your work is considered substantial, which affects whether you can continue receiving benefits.

The trial work period and extended may be able to access period thresholds also changed. During your trial work period, you can earn any amount without losing benefits. Once the trial work period ends, Social Security looks at your average earnings in months you worked. If your average monthly earnings exceed the SGA limit, your benefits will stop. The exact thresholds for these calculations are tied to the COLA.

Your Medicare Part B premium may have changed separately. While your SSDI payment rose 3.2 percent, your Part B premium is set by the Centers for Medicare and Medicaid Services based on program costs, not the COLA. In 2024, the Part B premium increased, but the amount depends on your income level and whether you are subject to income-related monthly adjustment amounts (IRMAA).

How the 2024 COLA compares to recent years

The 3.2 percent increase in 2024 sits in the middle of recent history. In 2023, beneficiaries received 8.7 percent—the largest COLA since 1981—because inflation spiked sharply in 2022. In 2022, the COLA was 5.9 percent. In 2021, it was 1.3 percent. In 2020, it was 1.3 percent. Before 2021, COLAs had been consistently low, ranging from 0 to 2.8 percent annually.

The 3.2 percent adjustment reflects that inflation, while still above historical averages, cooled from its 2022 peak. The CPI-W rose more slowly from mid-2023 to mid-2024 than it had in the prior year, so the COLA shrank accordingly. This does not mean your purchasing power returned to 2022 levels—inflation is cumulative, and prices remain higher than they were two years ago. But it does mean the year-over-year increase in your benefit is smaller.

Looking ahead, the 2025 COLA will be based on the CPI-W from July–September 2024. That figure will be announced in October 2024 and take effect January 1, 2025. The Social Security Administration publishes historical COLA data on its website, so you can see how your benefits have grown over time.

How the COLA affects family members on your record

If you have a spouse, ex-spouse, or children receiving benefits based on your SSDI record, they also received the 3.2 percent increase in January 2024. Social Security calculates their payments as a percentage of your primary insurance amount (PIA)—the base amount you receive. When your PIA goes up, so do theirs.

A spouse at full retirement age typically receives 50 percent of your PIA. A child typically receives 75 percent. An ex-spouse at full retirement age also receives 50 percent if the marriage lasted at least 10 years. When your PIA increased 3.2 percent, each of these family members' payments increased by the same percentage. The total family benefit has a cap—usually 150 to 180 percent of your PIA—but the COLA applies to all payments before that cap is calculated.

If a family member is also receiving SSI, they received a separate 3.2 percent increase to their SSI payment. SSI and SSDI COLAs are always the same, but they are calculated and paid separately.

COLA and your work incentives

The COLA does not change how work incentives function, but it does change the dollar thresholds that trigger them. The Plan to Achieve Self-Support (PASS) program, which lets you set aside income and resources to reach a work goal, has limits that adjust with the COLA. The Impairment Related Work Expenses (IRWE) deduction, which lets you subtract disability-related costs from your earnings, is not tied to the COLA but is reviewed annually.

The Student Earned Income Exclusion, which lets students under 22 exclude up to $2,170 per month in earnings (in 2024), is adjusted annually but not always by the full COLA percentage. Social Security publishes the current year's thresholds on its website each January.

If you are working or planning to return to work, check the current SGA limit and trial work period rules on the Social Security website or call 1-800-772-1213 to confirm the 2024 thresholds explore to your situation.

Frequently Asked Questions

Do I have to do anything to get the 3.2 percent increase?

No. The COLA is automatic. Your payment will increase in January with no process or request from you. You will see the new amount in your bank account or payment method on the first payment date of the month.

What if I am also receiving SSI along with SSDI?

Both payments increased 3.2 percent. SSI and SSDI COLAs are always identical, but they are separate payments. Your SSDI payment and your SSI payment each went up by 3.2 percent on January 1, 2024.

Does the COLA affect my Medicare Part B premium?

Not directly. Your SSDI payment rose 3.2 percent, but your Part B premium is set separately by Medicare based on program costs. Your premium may have increased, decreased, or stayed the same. Check your Medicare Summary Notice or call 1-800-MEDICARE to see your 2024 premium.

Will there be a COLA in 2025?

Almost certainly, but the amount is unknown until October 2024. The COLA is based on inflation from July–September 2024. If inflation continues at current rates, the 2025 COLA will likely be smaller than 3.2 percent, but this depends on what happens to prices over the next several months.

How does the COLA affect my work incentive limits?

The SGA limit and other work-related thresholds increase with the COLA each year. In 2024, the SGA limit is $1,550 per month for non-blind beneficiaries. If you earn more than this amount, your benefits may stop. The limit changes each January, so check the current year's figure before you start or increase work.