The 2023 COLA was 8.7 percent, the largest increase in four decades

In October 2022, the Social Security Administration announced that benefits would rise by 8.7 percent starting in January 2023. This was the largest cost-of-living adjustment (COLA) since 1981. For SSDI recipients, the increase meant that monthly payments went up automatically on the first payment date in January 2023, with no action required on your part.

The 8.7 percent figure was calculated by comparing the average Consumer Price Index for July, August, and September 2022 to the same three months in 2021. Because inflation was significantly higher in 2022 than in the previous year, the adjustment was much larger than the typical COLA, which has averaged around 2 to 3 percent over the past two decades.

If you received SSDI in 2023, your new payment amount reflected this increase. The exact dollar amount added to your check depended on what you were receiving in December 2022. Someone receiving $1,200 per month would have seen an increase of roughly $104, while someone receiving $800 would have seen an increase of about $70.

Key Takeaways

  • The 2023 COLA of 8.7 percent was applied automatically to all SSDI payments starting January 2023, with no process or action required from recipients.
  • The increase was calculated using inflation data from mid-2022, when prices were rising faster than they had in decades.
  • Your new payment amount in January 2023 was 8.7 percent higher than what you received in December 2022, unless your case had other changes.
  • The Social Security Administration mailed a notice in December 2022 showing your new benefit amount, though some recipients received this notice electronically through their my Social Security account.

How the 2023 COLA was calculated and announced

The Social Security Administration calculates COLA each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics. The agency compares the average CPI-W for July, August, and September of the current year to the same months in the previous year. If there is an increase, that percentage becomes the COLA for the following year.

In 2022, inflation was driven by supply chain disruptions, increased energy costs, and strong consumer demand. The CPI-W rose significantly during the summer months, which meant the 2023 COLA calculation captured this elevated inflation. The Social Security Administration announced the 8.7 percent figure on October 13, 2022, giving recipients and the public more than two months' notice before the increase took effect.

This announcement method is standard. The agency always announces the COLA in mid-October, and it always takes effect on January 1 of the following year. Benefit payments reflect the new amount starting with the first payment issued in January, which for most SSDI recipients arrives on the third day of the month.

What changed in your SSDI payment starting January 2023

Your monthly SSDI payment increased by exactly 8.7 percent in January 2023. If you were receiving $1,000 per month in December 2022, your January 2023 payment was $1,087. If you were receiving $1,500, your January payment was $1,630.50. The increase applied to your primary benefit amount — the base payment you receive as a disabled worker.

If you had family members receiving benefits on your record (such as a spouse or child), their payments also increased by 8.7 percent. However, if your family's total benefits were subject to the family maximum — a limit on the total amount that can be paid to all members of one family — the distribution of that maximum amount may have shifted slightly. The Social Security Administration handles these calculations automatically.

The increase also affected your Supplemental Security Income (SSI) payment if you received both SSDI and SSI. The federal SSI payment amount increases each year along with COLA, though some states add their own supplemental payments that may have different rules.

The notice you received in December 2022

The Social Security Administration mailed a notice to every SSDI recipient in December 2022 showing the new benefit amount effective January 2023. This notice, called the "Social Security Benefit Statement," listed your old monthly payment, the COLA percentage, and your new monthly payment. It also explained that the increase would appear in your January payment.

Some recipients received this notice electronically through their my Social Security account instead of by mail. If you have a my Social Security account and have opted into electronic notices, you would have seen the new benefit amount posted to your account in early December 2022. If you did not receive a notice by mail or electronically, you could have contacted the Social Security Administration at 1-800-772-1213 to request one or to confirm your new payment amount.

The notice also included information about how the COLA was calculated and reminded recipients that the increase was automatic — there was nothing they needed to do to receive it.

How 2023 COLA affected your work incentives and trial work period

If you were working while receiving SSDI, the 2023 COLA increase did not change your trial work period or your work incentive rules. Your trial work period — the nine-month window during which you can work and earn any amount without affecting your benefits — remained the same. The months you had already used in your trial work period before January 2023 still counted toward your nine-month total.

The substantial gainful activity (SGA) limit, which is the monthly earnings threshold above which the Social Security Administration assumes you can work, was set separately from COLA and did not change based on the 8.7 percent increase. In 2023, the SGA limit was $1,470 per month for non-blind disabled workers and $3,822 for blind workers. These amounts are determined by a different formula and are announced at the same time as COLA but are not tied to it.

If you were in your extended may be able to access period (the period after your trial work period ends when you can still receive benefits while working) or using a work incentive like Impairment Related Work Expenses (IRWE), the 2023 COLA did not affect how those programs worked. Your benefit amount increased, but the rules governing when benefits stop or reduce remained unchanged.

Comparing the 2023 COLA to previous years

The 8.7 percent increase in 2023 was historically large. From 2009 to 2021, the average COLA was approximately 1.4 percent per year. In 2022, there was no COLA at all — benefits remained flat. In 2021, the COLA was 1.3 percent. In 2020, it was 1.3 percent. The 2023 increase was more than six times larger than the average of the previous decade.

The reason for this spike was the rapid inflation that occurred in 2022. The CPI-W, which measures price changes for goods and services, rose sharply during the summer of 2022 compared to the same period in 2021. This created the largest year-over-year increase in the index since the early 1980s, which is why the 2023 COLA matched the largest adjustments from that era.

After 2023, COLA amounts returned to more typical levels. The 2024 COLA was 3.2 percent, and the 2025 COLA was 2.5 percent. These figures reflect a return to lower inflation rates after the spike in 2022.

What to do if you did not receive the increase or have questions

If your January 2023 payment did not reflect the 8.7 percent increase, or if you received a notice showing a different amount, contact the Social Security Administration when ready. Call 1-800-772-1213 (TTY 1-800-325-0778) to speak with a representative. Have your Social Security number and your December 2022 payment amount ready when you call.

If you received a notice in December 2022 but lost it or want to confirm the amount, you can log into your my Social Security account online at ssa.gov to view your current benefit amount. You can also request a replacement notice by mail through your account or by calling the number above.

If you believe your payment amount is incorrect, the Social Security Administration can review your case. Errors do occur, particularly if your case had recent changes (such as a work incentive ending or a family member's status changing). A representative can explain what your payment should be and correct any errors.

Frequently Asked Questions

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

No. The increase was applied automatically to all SSDI payments in January 2023. You did not need to contact Social Security, submit any forms, or take any action. The new amount appeared in your first payment in January.

What if I was in a trial work period during 2023 — did the COLA affect my benefits?

No. The COLA increase did not change how your trial work period works. Your benefit amount went up by 8.7 percent, but you could still earn any amount during your nine-month trial work period without affecting your benefits. The rules stayed the same.

Does the 2023 COLA increase count as income for SSI or other programs?

The COLA increase to your SSDI payment does not count as new income for SSI purposes — it is treated as a benefit increase, not earned income. However, if you receive both SSDI and SSI, contact your local Social Security office to confirm how the increase affects your specific case, as SSI rules can vary by state.

Will I get a COLA increase every year?

COLA is not may provide every year. It depends on inflation. If inflation is flat or negative, there may be no COLA. From 2009 to 2021, there were years with no increase. The 2023 COLA was large because inflation was high in 2022. Future COLA amounts depend on inflation in the months used for the calculation.

Can I appeal or change my benefit amount if I disagree with the 2023 COLA calculation?

No. COLA is set by law and applies to all SSDI recipients uniformly. You cannot appeal the COLA percentage itself. However, if you believe your specific payment amount is wrong — for example, if the increase was not applied to your account — you can contact Social Security to request a review of your case.