The October 2023 SSDI Payment Increase

Social Security Disability Insurance (SSDI) payments increased by 8.7 percent in October 2023. This was the Cost of Living Adjustment (COLA), an annual recalculation that raises benefit amounts to account for inflation measured over the previous year. The increase took effect on October 1, 2023, and appeared in payments issued on the third day of that month for most recipients.

The 8.7 percent figure was significantly higher than the 2022 COLA of 5.9 percent, reflecting the higher inflation rates throughout 2022 and early 2023. However, the exact dollar amount of your increase depended on your individual benefit amount before the adjustment.

If you received SSDI in October 2023, you did not need to take any action to receive the increase. Social Security applied it automatically to your account. If you were not yet receiving SSDI at that time, the October 2023 COLA would not have affected your case, but any future benefits you received would be calculated using the updated payment rates in effect after October 1, 2023.

Key Takeaways

  • The October 2023 COLA raised SSDI payments by 8.7 percent for all recipients receiving benefits on that date.
  • The increase was applied automatically; no action was required from you to receive it.
  • The exact dollar amount of your increase depended on your benefit amount before October 2023.
  • If you were not receiving SSDI in October 2023, the COLA did not affect your case, but future benefits would reflect the updated rates.

How the October 2023 COLA Was Calculated

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published by the Bureau of Labor Statistics. Social Security compares the average CPI-W for July, August, and September of one year to the average for the same three months of the previous year. The percentage change becomes the COLA for the following October.

For the October 2023 COLA, Social Security compared the average CPI-W from July through September 2023 to the average from July through September 2022. The result was an 8.7 percent increase. This method has been used since 1975 and applies to all Social Security programs, including SSDI, Supplemental Security Income (SSI), and retirement benefits.

The COLA is never negative. If inflation were to decline and the CPI-W calculation showed a decrease, Social Security would explore a COLA of 0 percent instead, meaning no increase but also no reduction in benefit amounts.

When the October 2023 Payment Hit Your Account

SSDI payments are issued on a schedule based on your birth date. Most recipients receive payments on the third, fourth, or fifth Wednesday of each month. In October 2023, the increased payment amount appeared in the regular payment issued according to your individual schedule.

If you received your SSDI payment via direct deposit, the increase was deposited into your bank account on your scheduled payment date in October 2023. If you received a paper check, the check was mailed according to the standard schedule and reflected the increased amount.

Social Security also mailed a notice to each SSDI recipient in October or November 2023 explaining the COLA and showing the new monthly benefit amount. If you did not receive this notice, you could contact Social Security to request a copy or verify your new payment amount.

Comparing the October 2023 COLA to Previous Years

The 8.7 percent increase in October 2023 was notably higher than the increases of the previous several years. In October 2022, the COLA was 5.9 percent. In October 2021, it was 1.3 percent. In October 2020, it was 1.3 percent. In October 2019, it was 2.8 percent.

The spike in 2023 reflected the broader economic conditions of 2022 and early 2023, when inflation rates reached levels not seen in decades. By mid-2023, inflation had begun to moderate, but the COLA calculation captured the cumulative effect of the higher prices that had persisted through the summer months.

COLA amounts vary year to year based on actual inflation data. There is no way to predict the October 2024 COLA or beyond until Social Security publishes the official calculation in October of each year.

How the October 2023 Increase Affected SSI and Other Benefits

The 8.7 percent COLA applied to Supplemental Security Income (SSI) as well as SSDI. SSI recipients who were receiving benefits in October 2023 saw their monthly payment amounts increase by the same percentage. The same automatic process process applied—no action was required.

The COLA also affected the federal benefit rate (FBR) for SSI, which is the maximum monthly payment amount for individuals and couples. In October 2023, the FBR increased from $914 per month for an individual to $992 per month, and from $1,371 to $1,488 for a couple. These figures are the federal baseline; some states add supplemental payments on top of the federal amount, and those state supplements may have different rates.

Retirement and survivor benefits under Social Security also received the same 8.7 percent increase in October 2023. The COLA is a uniform adjustment across all Social Security programs.

What to Do If You Did Not Receive the October 2023 Increase

If you were receiving SSDI in October 2023 but did not see an increase in your payment, contact Social Security to verify your account. The increase should have been applied automatically. Possible reasons for a missing increase include a payment suspension due to work activity, a change in your case status, or an error in Social Security's records.

You can reach Social Security by calling 1-800-772-1213 (TTY 1-800-325-0778) Monday through Friday, 8 a.m. to 7 p.m. Eastern time. Have your Social Security number ready. You can also visit your local Social Security office in person or create an account on ssa.gov to view your payment history and current benefit amount.

If you believe an error occurred, ask Social Security to provide a written explanation of your current benefit calculation. This document will show whether the COLA was applied and, if not, why your case was treated differently.

Frequently Asked Questions

Does the October 2023 COLA explore if I started receiving SSDI after October 1, 2023?

No. The COLA applies only to people already receiving benefits on October 1, 2023. If you began receiving SSDI in November 2023 or later, your initial benefit amount was calculated using the post-COLA rates, but you did not receive a separate 8.7 percent increase on top of that. Your first payment reflected the current payment rates in effect at the time your case was approved.

Can I find out what my SSDI payment was before the October 2023 increase?

Yes. Social Security's notice sent in October or November 2023 showed both your old and new benefit amounts. You can also contact Social Security or log into your account on ssa.gov to request a detailed payment history. This history shows your benefit amount for each month, including September 2023 (before the increase) and October 2023 (after).

If I'm working and my SSDI is suspended, do I still get the COLA increase?

The COLA applies to your benefit amount, but if your case is suspended due to work activity, you may not receive a payment in October 2023. When your suspension ends and payments resume, they will be calculated using the post-COLA rates. Contact Social Security to clarify your specific situation.

Will the October 2023 COLA affect my Medicare or Medicaid?

An increase in your SSDI payment may affect your Medicaid, depending on your state's rules and your income level. It should not affect your Medicare Part A or Part B premiums if you are already enrolled. If you receive both SSDI and SSI, the increase could affect your SSI payment if your total income now exceeds the SSI limit. Contact your state Medicaid office or Social Security to understand how the increase affects your specific situation.