The 8.7% increase that took effect in March 2023
In March 2023, Social Security Disability Insurance (SSDI) payments increased by 8.7% for all recipients. This was the annual cost-of-living adjustment (COLA) that Social Security announces each year based on inflation. If you received SSDI in February 2023, your March payment reflected this increase automatically — you did not need to do anything to receive it.
The 8.7% figure was the largest increase in four decades. For someone receiving $1,200 per month in February, the March payment jumped to approximately $1,304. The exact amount of your increase depended on what you were receiving before the adjustment.
This adjustment applied to all SSDI beneficiaries, including those who also received Supplemental Security Income (SSI), though SSI recipients saw the increase applied separately to their SSI portion of the payment.
Key Takeaways
- SSDI payments increased 8.7% in March 2023, the largest cost-of-living adjustment in four decades.
- The increase was automatic and applied to all SSDI recipients without requiring any action on their part.
- The adjustment was based on inflation data from the previous year and announced by Social Security in October 2022.
- Recipients who also received SSI saw the increase applied to both portions of their payment separately.
How the 8.7% increase was calculated
Social Security calculates the annual cost-of-living adjustment using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index measures how prices for goods and services change over time. In October 2022, Social Security announced that the CPI-W had risen 8.7% from the third quarter of 2021 to the third quarter of 2022, so that became the adjustment rate for 2023.
The adjustment is not a raise or a bonus — it is meant to keep your payment from losing purchasing power as inflation rises. Without the COLA, the same monthly payment would buy less food, medicine, and housing each year.
Social Security rounds the COLA to the nearest tenth of a percent. In 2023, that rounding resulted in the 8.7% figure. The actual calculation is more precise, but the public announcement and the payment adjustment both use the rounded number.
When the March 2023 increase appeared in your bank account
The increased payment arrived on your regular payment date in March 2023. Social Security does not send a separate notice or deposit — the new amount straightforward replaced the old one on the date you normally receive your payment.
If you receive SSDI through direct deposit, the larger amount hit your bank account on your scheduled payment date. If you receive a check, it arrived by mail on that date. Your payment date depends on your birth date: people born on the 1st through the 10th of any month receive payments on the second Wednesday of each month, those born on the 11th through the 20th receive them on the third Wednesday, and those born on the 21st through the 31st receive them on the fourth Wednesday.
You should have seen the increase reflected in your March 2023 payment statement or bank deposit. If you did not see an 8.7% increase, contact Social Security to verify your account, as an error may have occurred.
Why 2023 had the largest increase since the 1980s
The 8.7% increase was driven by inflation that peaked in 2022. Prices for groceries, gasoline, rent, and utilities rose sharply throughout 2021 and 2022, and the CPI-W captured that rise. The previous year's COLA had been 5.9%, and the year before that 1.3%, so the jump to 8.7% reflected a significant acceleration in the cost of living.
This does not mean inflation stayed at 8.7% after March 2023. Inflation rates change month to month, and the COLA announced in October 2022 was based on data from the previous year. The 2024 COLA, announced in October 2023, reflected inflation trends from mid-2022 to mid-2023, which had cooled compared to the prior period.
For SSDI recipients, the 8.7% increase in 2023 meant that the purchasing power of the payment kept pace with the inflation that had already occurred, but future COLAs would be based on future inflation rates.
How the increase affected SSI recipients who also receive SSDI
Some people receive both SSDI and Supplemental Security Income (SSI). SSI is a separate needs-based program, and its payment limit also increased in March 2023. The federal SSI payment limit rose from $841 to $914 per month for an individual (the exact amount varies by state, as some states add their own supplement).
If you received both SSDI and SSI, your SSDI portion increased by 8.7%, and your SSI portion was adjusted separately based on the new SSI payment limit. The two increases were calculated independently and applied to your total payment.
The interaction between SSDI and SSI can be complex if you are also working or have other income. If you had questions about how the increase affected your specific situation, Social Security's website or a local Social Security office could provide details about your account.
What to do if your March 2023 payment seemed wrong
If your March 2023 payment did not increase by approximately 8.7%, or if the amount seemed incorrect for another reason, you have several options to investigate.
First, check your Social Security statement online through your my Social Security account at ssa.gov. Log in and view your payment history to see what amount was deposited in March 2023 and compare it to your February 2023 payment. This will show you the exact dollar increase and help you verify whether the COLA was applied correctly.
If the increase does not match 8.7% of your previous payment, contact Social Security directly. You can call 1-800-772-1213 (TTY 1-800-325-0778) to speak with a representative, or visit your local Social Security office in person. Bring your Social Security card and a photo ID. Social Security can review your account and explain any discrepancy.
How the March 2023 increase compared to other years
The 8.7% COLA in 2023 was historically large. Here is how recent years compared:
- 2023: 8.7%
- 2022: 5.9%
- 2021: 1.3%
- 2020: 1.7%
- 2019: 2.8%
The 2023 increase was the largest since 1981, when the COLA was 11.2%. Most years between 2010 and 2020 saw increases between 0% and 3%, so the jump to 8.7% represented a significant shift in inflation and in the purchasing power adjustment for beneficiaries.
The COLA is announced each October for the following year, so the 2024 adjustment was announced in October 2023 and took effect in January 2024 (not March). The timing of the March 2023 increase was part of the regular annual schedule, not a special or emergency adjustment.
Frequently Asked Questions
Did I have to do anything to get the March 2023 increase?
No. The increase was automatic. Social Security applied the 8.7% COLA to all SSDI payments in March 2023 without requiring any action from you. You did not need to contact Social Security, submit a form, or take any steps to receive it.
What if I was not receiving SSDI in March 2023?
If you began receiving SSDI after March 2023, your first payment was calculated using the new payment amount that included the 8.7% increase. You did not receive the increase retroactively for months before you started receiving benefits.
Does the March 2023 increase affect how much I can earn while working?
No. The COLA does not change the earnings limits for SSDI work incentives. The substantial gainful activity (SGA) limit and other work-related thresholds are set separately and announced at different times. The March 2023 increase only affected the payment amount itself.
Will my Medicare or Medicaid coverage change because of the increase?
Your SSDI payment increase should not affect your Medicare coverage, which is based on your SSDI status rather than the payment amount. For Medicaid, the rules vary by state. Some states use income limits that could be affected by a higher SSDI payment, so contact your state Medicaid office if you have concerns about your coverage.
How do I find out what my payment will be in 2024?
The 2024 COLA was announced in October 2023 and took effect in January 2024. You can view your current payment amount and payment history through your my Social Security account at ssa.gov, or call Social Security at 1-800-772-1213 to ask about your 2024 payment amount.