What the 2023 COLA increase was

Social Security raised SSDI payments by 8.7 percent in 2023. This was the largest increase in four decades. The raise took effect on January 1, 2023, and applied to everyone receiving SSDI that month.

The 8.7 percent figure came from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation across the economy. When inflation rises, Social Security calculates a new COLA to keep payments roughly in line with what money actually costs to live on.

The exact dollar amount of your increase depended on what you were receiving before January 2023. Someone getting $1,000 per month would have received about $87 more per month starting in January. Someone getting $1,500 would have received about $130 more.

Key Takeaways

  • The 2023 COLA was 8.7 percent, the largest increase since 1983, and took effect January 1, 2023.
  • Your new payment amount was calculated by multiplying your old monthly payment by 1.087, then rounding down to the nearest dollar.
  • The increase applied automatically to all SSDI recipients in January 2023 — you did not have to do anything to receive it.
  • Social Security mailed a notice in December 2022 showing your new payment amount, though some people received it in early January instead.

How Social Security calculated your new payment

Social Security did not send you a form to fill out or require you to contact them. The increase was automatic. On January 1, 2023, the agency multiplied your December 2022 payment by 1.087 and rounded down to the nearest dollar.

If you were receiving $1,247 per month in December 2022, your new payment became $1,355 per month ($1,247 × 1.087 = $1,355.289, rounded down to $1,355). The calculation was the same for everyone, regardless of how much you were receiving or how long you had been on SSDI.

The increase also applied to any family members receiving benefits on your record — a spouse, ex-spouse, or child. Each person's payment was raised by the same 8.7 percent.

When you saw the increase in your bank account

The first payment at the new rate arrived in January 2023, on your regular payment date. Most SSDI recipients receive payments on the third day of each month, though some receive them on the second, fourth, or fifth depending on when they were born or when they first started receiving benefits.

If you receive your payment by direct deposit, the money appeared in your bank account on your regular payment date in January. If you receive a check, it arrived by mail around the same time. There was no delay or waiting period — the increase took effect when ready.

The notice Social Security sent you

Social Security mailed a notice in December 2022 to every SSDI recipient, showing the new payment amount starting in January. The notice was titled "Your Benefit Increase" and included your old monthly payment, your new monthly payment, and the percentage increase.

Some people received this notice in early January 2023 instead of December. If you did not receive a notice and your payment changed in January, you could contact Social Security to request one. The notice was informational only — it did not require you to sign anything or take any action.

If you lost the notice or did not receive one, you could log into your my Social Security account online to see your current payment amount. You could also call Social Security at 1-800-772-1213 to ask what your new payment was.

Why 2023 had such a large increase

The 8.7 percent increase reflected high inflation in 2022. Prices for food, energy, housing, and other necessities rose sharply that year, and the CPI-W captured those increases. Social Security is required by law to adjust payments each year based on inflation, so when inflation is high, the COLA is high.

The 2022 COLA had been 5.9 percent. The jump to 8.7 percent in 2023 was unusual — most years see smaller increases. The 2024 COLA, by comparison, was 3.2 percent, because inflation had cooled between late 2022 and late 2023.

COLA amounts change every year based on inflation that year. There is no way to predict what next year's increase will be until Social Security announces it in October.

What the increase meant for your other benefits

If you were receiving Supplemental Security Income (SSI) in addition to SSDI, your SSI payment also increased by 8.7 percent in January 2023. SSI uses the same COLA as SSDI.

If you were receiving Medicare, the increase did not change your coverage or your benefits. However, your Medicare Part B premium (the monthly charge for doctor visits and outpatient care) may have changed. Social Security holds your Part B premium constant or reduces it if your COLA increase is large enough, so many people saw their net payment increase even after the premium was deducted.

If you were receiving Medicaid, the increase did not change your coverage. Medicaid is run by your state, and SSDI payment increases do not affect your state Medicaid status.

Frequently Asked Questions

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

No. The increase was automatic and applied to your account 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 January 2023, you received the increase.

What if I started receiving SSDI after January 2023?

Your first payment would have been calculated using the new payment rate that was in effect when you started. You would not receive a separate 8.7 percent increase on top of that — the new rate was already built in.

Can I find out what my payment would have been without the COLA increase?

Yes. Divide your January 2023 payment by 1.087 and round down to the nearest dollar. That gives you your December 2022 payment amount. The difference between the two is your 8.7 percent increase in dollars.

Does the COLA increase affect my work incentives or trial work period?

No. The COLA increase is a change to your payment amount only. It does not change the rules about how much you can earn while receiving SSDI, your trial work period, or your extended may be able to access period. Those rules stay the same year to year.

What if I think my new payment amount is wrong?

Contact Social Security at 1-800-772-1213 or visit your local Social Security office. Bring the notice Social Security sent you in December 2022 or January 2023, and ask them to review your payment calculation. They can tell you whether the increase was applied correctly.