The 2025 COLA increases SSDI payments by 2.5 percent

Social Security announced in October 2024 that the 2025 Cost of Living Adjustment (COLA) is 2.5 percent. This means your monthly SSDI payment will increase by 2.5 percent starting in January 2025. The exact dollar amount of your increase depends on what you received in December 2024 — there is no flat dollar amount that applies to everyone.

For example, if you received $1,200 per month in December 2024, your January 2025 payment would be approximately $1,230 (an increase of $30). If you received $800 per month, your increase would be approximately $20. Social Security calculates each person's new amount individually based on their current benefit.

You do not need to do anything to receive this increase. It happens automatically. Your new payment amount will appear in your account on the third of the month (or the first business day after if the third falls on a weekend or holiday).

Key Takeaways

  • Your SSDI payment increases by 2.5 percent in January 2025, with the new amount deposited automatically to your bank account or payment card.
  • The dollar amount of your increase varies based on what you were receiving in December 2024 — Social Security calculates each person's new amount separately.
  • You will receive a notice in the mail (Form SSA-1099 or a similar letter) showing your new payment amount, usually by early January.
  • If you receive both SSDI and Supplemental Security Income (SSI), your SSI payment also increases by 2.5 percent, and the federal benefit rate for SSI rises to $967 per month.
  • The COLA does not affect your work incentives, Medicaid coverage, or Medicare may be able to access — your benefits continue under the same rules as before.

When the increase appears in your account

The 2025 COLA takes effect on January 1, 2025, but the payment itself arrives on the third of the month. If you receive SSDI by direct deposit (which Social Security now requires for new beneficiaries), the increased amount will land in your bank account on January 3, 2025, or the first business day after if that date falls on a weekend or holiday.

If you receive a payment card instead of direct deposit, the increase will be loaded onto your card on the same schedule. You should see the new amount when you check your balance or receive your next statement.

Social Security mails a notice to every beneficiary showing the new payment amount. This notice usually arrives in early January. Keep it for your records — you may need it to verify your income for housing information, tax purposes, or other programs.

How COLA is calculated each year

The COLA percentage is not set by Social Security or Congress. It is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across the economy. In October of each year, the Social Security Administration compares the average CPI-W for July, August, and September to the same three months from the previous year. The percentage increase becomes the COLA for the following year.

For 2025, the CPI-W rose enough between those periods to produce a 2.5 percent adjustment. This is lower than the 2024 COLA (3.2 percent) and lower than the 2023 COLA (8.7 percent), which reflected higher inflation in those years. The COLA can also be zero if the CPI-W does not rise — this happened in 2010, 2011, and 2016.

Social Security announces the COLA in mid-October each year. You can find the announcement on the Social Security website or by calling 1-800-772-1213.

COLA and your other benefits

If you receive Supplemental Security Income (SSI) in addition to SSDI, your SSI payment also increases by 2.5 percent in January 2025. The federal benefit rate for SSI — the maximum amount you can receive if you have no other income — rises to $967 per month for an individual and $1,450 for a couple. Your actual SSI payment depends on your living situation and other income, so your increase may differ from the COLA percentage.

If you have a family member receiving benefits on your record (a spouse or child), their payment also increases by 2.5 percent. Each person's increase is calculated on their own benefit amount, so family members may receive different dollar amounts even though the percentage is the same.

The COLA does not change your Medicare or Medicaid coverage. If you are enrolled in Medicare Part A and Part B, your premiums may change in January, but this is separate from the COLA. Your Medicaid coverage continues under your state's rules and does not end because your SSDI payment increased.

Reporting the increase to other programs

Some programs you may receive — such as housing information, food information (SNAP), or Medicaid in certain states — count your SSDI income when determining whether you remain may be able to access or how much information you receive. When your SSDI payment increases in January, you may need to report the new amount to these programs.

Check the rules for each program you receive. Many programs have income limits or thresholds, and a 2.5 percent increase might push you over a limit in some cases. However, some programs have "pass-through" rules that exclude COLA increases from income calculations for a set period, so the increase does not when ready affect your other benefits.

If you are unsure whether to report the increase, contact the program directly. Most housing authorities, state Medicaid offices, and SNAP agencies have staff who can tell you whether the COLA affects your case.

Checking your new payment amount before January

You can view your new 2025 payment amount before January arrives by logging into your my Social Security account at ssa.gov. Once you log in, go to "Benefit Verification" or "Payment History" to see your current and projected amounts. The site updates in mid-December with the official 2025 figures.

If you do not have a my Social Security account, you can create one at ssa.gov using your email address and Social Security number. This account also lets you view your earnings record, change your address, and request a replacement Social Security card.

If you prefer not to use the online account, you can call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and ask a representative to tell you your new payment amount. Have your Social Security number ready. Wait times are usually shorter early in the morning or later in the afternoon.

What happens if you work while receiving SSDI

The COLA increase does not change the rules about working and earning money. If you are using a work incentive such as the Trial Work Period or Extended may be able to access Period, your earnings limits and benefit reduction rules remain the same. The 2.5 percent increase to your payment amount does not affect how much you can earn without losing benefits.

If you are currently working and your earnings are high enough to suspend your SSDI benefits, the COLA still applies to your benefit amount — it straightforward means your benefit will be higher when you stop working or when your earnings drop below the limit.

For detailed information about how work affects your SSDI, see the Social Security work incentives guide or contact your local Social Security office.

Frequently Asked Questions

Will the 2.5 percent increase affect my SSI or Medicaid?

The increase applies to your SSDI payment automatically. If you also receive SSI, that increases by 2.5 percent too. Some states have rules that protect SSI recipients from losing Medicaid when their SSDI increases, but this varies by state. Contact your state Medicaid office to confirm whether the increase affects your coverage.

What if I think my new payment amount is wrong?

Check the notice Social Security mails you in January — it will show the calculation. If the amount does not match what you expected, log into my Social Security or call 1-800-772-1213 to ask a representative to review your account. Keep records of your December 2024 payment so you can verify the 2.5 percent calculation.

Do I have to report the COLA increase to my landlord or other programs?

Some programs require you to report income changes. Check the rules for housing information, SNAP, and any other benefits you receive. Many programs have a reporting important date (usually 10 to 30 days), so do not wait until your next recertification. Call the program to ask whether you need to report the increase.

Can the COLA be taken away or reduced later in the year?

No. Once the COLA takes effect in January, it is permanent for that year. Your payment amount does not decrease during the year because of the COLA. It can only change if your individual circumstances change — such as if you return to work, your living situation changes, or you reach full retirement age.

When will the 2026 COLA be announced?

Social Security announces the COLA for the following year in mid-October. The 2026 COLA will be announced in October 2025 and will take effect in January 2026. You can check the Social Security website or call 1-800-772-1213 in October to learn the new percentage.