The 2023 SSDI payment increase was 8.7 percent, effective December 2022
Social Security announced in October 2022 that SSDI payments would rise by 8.7 percent starting with the December 2022 payment. This was the largest cost-of-living adjustment (COLA) in four decades. The increase reflected inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) through September 2022.
If you received SSDI in December 2022 or later, your payment reflected this increase automatically. You did not need to do anything to receive it. Social Security mailed notices to all beneficiaries in October 2022 showing the new payment amount.
The exact dollar amount of your increase depended on what you were receiving before the adjustment. Someone getting $1,000 per month would have received roughly $87 more per month starting in December 2022. Someone getting $1,500 would have received roughly $130 more. The percentage was the same for everyone, but the dollar amount varied by individual benefit.
Key Takeaways
- The 8.7 percent increase took effect with the December 2022 payment, which arrived in early January 2023 for most beneficiaries.
- Social Security applied the increase automatically to all SSDI recipients; no action was required on your part.
- Your new payment amount was shown in the notice Social Security mailed in October 2022, and you can verify it in your my Social Security account online.
- The increase was based on inflation data through September 2022 and was the largest COLA adjustment since 1981.
How the 8.7 percent was calculated
Social Security calculates COLA each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index measures price changes for food, housing, transportation, medical care, and other goods and services that people buy. Social Security compares the average CPI-W for July, August, and September of the current year to the same three months of the previous year.
For 2023, the CPI-W rose 8.7 percent year-over-year through September 2022. This was driven primarily by increases in energy costs, food prices, and housing. Social Security then applied this percentage to every SSDI beneficiary's current payment amount, rounded down to the nearest dime.
The 8.7 percent figure was announced on October 13, 2022, giving beneficiaries and the public two months' notice before the increase took effect. This announcement window is required by law.
When the increase appeared in your account
The December 2022 SSDI payment, which included the 8.7 percent increase, was deposited or mailed on the third day of January 2023 for most beneficiaries. The exact date depended on your birth date and how you receive payment. If you have your SSDI deposited directly to a bank account, the money arrived on January 3, 2023. If you receive a paper check, it was mailed in late December 2022 and typically arrived within a few days.
You could see your new payment amount before it arrived by checking your my Social Security account online at ssa.gov. The account showed your updated benefit amount as soon as Social Security processed the COLA adjustment in November 2022. You could also call Social Security at 1-800-772-1213 to confirm your new payment amount.
Comparing 2023 to previous years
| Year | COLA Percentage | Reason |
|---|---|---|
| 2022 | 5.9% | Inflation through September 2021 |
| 2023 | 8.7% | Inflation through September 2022 |
| 2024 | 3.2% | Inflation through September 2023 |
| 2025 | 3.2% | Inflation through September 2024 |
The 8.7 percent increase in 2023 was significantly larger than the 5.9 percent increase in 2022, reflecting the acceleration of inflation during 2022. It was the largest COLA since 1981, when the adjustment was 11.2 percent. The years when ready following 2023 saw smaller adjustments as inflation moderated.
COLA adjustments are never negative. If inflation were to decline and the CPI-W fell year-over-year, Social Security would not reduce payments. Instead, the COLA would be 0 percent, and payments would remain flat. This has happened only three times in the program's history: 2010, 2011, and 2016.
What the increase meant for your taxes and benefits
If you owed federal income tax on your SSDI benefits, the 8.7 percent increase raised your total annual income and may have affected how much of your benefits were taxable. SSDI benefits are taxable only if your combined income (adjusted gross income plus half your SSDI benefits plus any tax-exempt interest) exceeds certain thresholds: $25,000 for single filers or $32,000 for married couples filing jointly.
The increase also affected your Medicare premiums if you were enrolled in Medicare Part B or Part D. Social Security holds Medicare premiums harmless for most beneficiaries, meaning your premium cannot increase more than your COLA increase. However, if you were newly enrolled in Medicare or fell into a small group not covered by the hold-harmless rule, your premium could have risen independently of the COLA.
If you were receiving Supplemental Security Income (SSI) in addition to SSDI, the COLA applied to your SSDI portion only. SSI has a separate payment structure and does not receive COLA adjustments in the same way.
Checking your payment records
You can verify that you received the 8.7 percent increase by logging into your my Social Security account at ssa.gov. Under the "Benefit Verification" section, you can view your current payment amount and see a history of past payments. The account shows deposits or check issuance dates and amounts going back several years.
If you do not have a my Social Security account, you can create one using your Social Security number, email address, and a phone number. You will need to verify your identity through a find process. Once logged in, you can see your payment history, update your address or direct deposit information, and view your Social Security Statement.
If your payment did not increase by 8.7 percent in December 2022, contact Social Security at 1-800-772-1213 to ask why. Possible reasons include a recent change in your case (such as a work incentive or a change in family composition), a suspension of benefits, or an error in your account. Social Security can explain the discrepancy and correct it if needed.
Frequently Asked Questions
Did everyone on SSDI get the same 8.7 percent increase?
Yes, every SSDI beneficiary received an 8.7 percent increase to their payment amount, rounded down to the nearest dime. The dollar amount of the increase varied by individual because it was calculated as a percentage of each person's current payment. Someone receiving $800 per month received a smaller dollar increase than someone receiving $1,500 per month, but both received the same 8.7 percent.
What if I was not receiving SSDI in December 2022?
If you began receiving SSDI after December 2022, your initial payment amount was already calculated using the 2023 payment rates that included the 8.7 percent increase. You did not receive a separate adjustment notice because the increase was already built into your starting benefit. If you had stopped receiving SSDI and restarted it in 2023 or later, your new payment reflected the current year's rates.
Does the 8.7 percent increase happen every year?
No. COLA adjustments vary each year based on inflation measured by the CPI-W. Some years the increase is larger, some years smaller, and in rare cases it is zero percent. Social Security announces the next year's COLA in October of each year. You can check the Social Security website or call 1-800-772-1213 to learn the upcoming year's adjustment.
How does the COLA increase affect my work incentives or trial work period?
The COLA increase does not change the rules for work incentives or the trial work period. If you are using a work incentive such as Impairment Related Work Expenses (IRWE) or Plan to Achieve Self-Support (PASS), those programs continue under their existing rules. The higher payment amount may affect your countable income if you are working, but Social Security will calculate this correctly when processing your earnings report.