The 2025 COLA increased SSDI payments by 2.5 percent

The Social Security Administration announced a 2.5 percent cost-of-living adjustment (COLA) for 2025. This means your monthly SSDI payment went up by 2.5 percent starting in January 2025. The exact dollar amount of your increase depends on what you were receiving in December 2024.

For example, if you received $1,000 per month in December 2024, your January 2025 payment is $1,025. If you received $1,500, your new payment is $1,537.50. The increase is automatic — you do not need to contact Social Security or take any action to receive it.

COLA adjustments happen once per year, in January, and are based on inflation data from the previous year. The 2.5 percent figure was lower than the 2024 COLA (3.2 percent) and the 2023 COLA (8.7 percent), reflecting slower inflation in 2024.

Key Takeaways

  • Your SSDI payment increased by 2.5 percent in January 2025, with no action required on your part.
  • The exact dollar increase depends on your prior payment amount, and you can calculate it by multiplying your December 2024 payment by 0.025.
  • COLA adjustments are based on inflation data from the previous calendar year and occur once annually in January.
  • Your new payment amount appears on your January 2025 benefit statement, which you can view in your my Social Security account online.
  • If you receive both SSDI and Supplemental Security Income (SSI), both payments received the same 2.5 percent increase.

How to verify your new 2025 payment amount

Your new payment amount should appear automatically in your January 2025 benefit statement. The fastest way to see it is to log into your my Social Security account at ssa.gov. Click "Benefit Verification" and look for your current payment amount listed there.

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. The account takes a few minutes to set up and gives you access to your payment history, earnings record, and benefit statements at any time.

You can also call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) to confirm your new payment amount. Have your Social Security number ready. Wait times are typically shorter early in the morning or on weekdays.

Why COLA amounts change from year to year

COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published monthly by the Bureau of Labor Statistics. Social Security calculates the COLA by comparing the average CPI-W for July, August, and September of the current year to the same three months of the previous year.

When inflation is high, COLA is higher. When inflation is low, COLA is lower. In 2024, inflation slowed compared to 2023, which is why the 2025 COLA (2.5 percent) is smaller than the 2024 COLA (3.2 percent). The 2023 COLA was exceptionally high at 8.7 percent because inflation peaked in 2022.

Social Security announces the COLA amount in October of each year, and the new payment amount takes effect in January. This means you learn about your 2026 COLA in October 2025, and it goes into effect in January 2026.

What happens if you also receive SSI

If you receive both SSDI and Supplemental Security Income (SSI), both payments received the 2.5 percent increase in January 2025. SSI is a separate needs-based program for people with low income and limited resources, and it receives the same COLA as SSDI.

However, SSI has a federal benefit rate (the maximum monthly payment), which also increased by 2.5 percent in 2025. If you are at or near the maximum, your payment may not increase by the full 2.5 percent because of the cap. Your state may also supplement SSI payments, and state supplement amounts vary.

Check your my Social Security account or call 1-800-772-1213 to see both your SSDI and SSI payment amounts for January 2025.

How COLA affects your work incentives and earnings limits

If you are working while receiving SSDI, the COLA does not change how much you can earn before Social Security reduces your payment. SSDI has a substantial gainful activity (SGA) limit — the amount of monthly earnings that counts as work. In 2025, the SGA limit is $1,550 per month for non-blind individuals and $2,590 for blind individuals.

These limits are separate from COLA and are set by Social Security based on wage trends, not inflation. They change once per year but on a different schedule than COLA. If you earn more than the SGA limit in a month, Social Security may find that you are no longer disabled and review your case.

SSDI also has a trial work period that lets you test your ability to work without losing benefits. During the trial work period (usually nine months), you can earn any amount and keep your full SSDI payment. The trial work period rules do not change with COLA.

COLA and Medicare premiums

If you receive SSDI and are enrolled in Medicare Part B (medical insurance), your Medicare premium may be deducted from your SSDI payment. In 2025, the standard Medicare Part B premium is $174.70 per month, though some people pay more based on their income.

Social Security uses a "hold harmless" rule that protects most beneficiaries: if your Medicare premium increases, the increase cannot be larger than your COLA increase. This means your net SSDI payment (after the premium is deducted) will not go down because of a premium increase.

However, if you are subject to income-related monthly adjustment amounts (IRMAA) because your income is above a certain threshold, you may pay a higher Part B premium, and the hold harmless rule does not explore to you. Check your Medicare notices in the mail or log into Medicare.gov to see your 2025 premium.

Planning your budget with the 2025 increase

A 2.5 percent increase is modest but real. If you budget tightly, it may help cover a small portion of rising costs. However, inflation in 2024 was higher than 2.5 percent for many categories — housing, food, and utilities in particular — so your purchasing power may not have kept pace.

If you receive SSDI and are working, the increase may give you a small buffer if you are close to the SGA limit. If you are not working, the increase may help offset some of the cost-of-living increases you have experienced since January 2024.

Keep your my Social Security account updated with your current address and phone number so you receive any notices about changes to your payment or benefits. If your circumstances change — such as your living situation, income, or family status — report the change to Social Security within 30 days.

Frequently Asked Questions

Do I have to do anything to get the 2025 COLA increase?

No. The increase is automatic and appears in your January 2025 payment. You do not need to contact Social Security, fill out a form, or take any action. If you have direct deposit set up, the new amount goes into your bank account on your regular payment date.

What if I did not receive a notice about the COLA increase?

Social Security mails COLA notices in December, but not all beneficiaries receive them. You can see your new payment amount in your my Social Security account or by calling 1-800-772-1213. If you did not receive a notice and want one, you can request a replacement by logging into your account or calling.

Can I appeal my COLA amount if I think it is wrong?

COLA is a fixed percentage applied to all SSDI payments, so there is no individual appeal. However, if your payment amount itself is incorrect — meaning the 2.5 percent was not applied correctly to your prior payment — contact Social Security to report the error. They will correct it and issue a back payment if needed.

Does the 2025 COLA affect my family members who receive benefits on my record?

Yes. If your spouse, ex-spouse, or children receive benefits based on your SSDI record, their payments also increased by 2.5 percent in January 2025. Each family member's increase is calculated on their own prior payment amount.

Will there be a COLA increase in 2026?

Almost certainly, though the amount is unknown until October 2025. COLA has been positive every year since 1975, but the percentage varies based on inflation. Social Security will announce the 2026 COLA in October 2025, and it will take effect in January 2026.