SSDI payments increased by 8.7 percent in 2023

Yes. The Social Security Administration announced in October 2022 that SSDI benefits would rise by 8.7 percent starting January 2023. This was the largest cost-of-living adjustment (COLA) in four decades. The increase was automatic — you did not have to do anything to receive it. If you were collecting SSDI in December 2022, your January 2023 payment reflected the raise.

The 8.7 percent figure applied to all SSDI recipients equally. The actual dollar amount you received depended on your individual benefit rate, which is based on your earnings history and the age at which you became disabled. Someone receiving $1,200 per month in December 2022 would have received approximately $1,304 in January 2023.

Key Takeaways

  • SSDI payments increased 8.7 percent in January 2023, the largest adjustment since 1982.
  • The increase was automatic and applied to all recipients; no action was required on your part.
  • Your new payment amount depended on your individual benefit rate before the adjustment.
  • The Social Security Administration announces COLA percentages each October for the following year.

How the 2023 COLA was calculated

The 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 compares the average CPI-W for July, August, and September of one year to the same three months of the previous year. If inflation has occurred, the percentage increase becomes the COLA for the next year.

In 2022, inflation was unusually high due to supply chain disruptions, energy costs, and increased consumer demand following pandemic lockdowns. The average CPI-W for summer 2022 was significantly higher than summer 2021, which produced the 8.7 percent adjustment. This was not a decision made by Social Security officials — it was a mathematical result of how inflation was measured during that specific period.

When you received the 2023 increase

The 8.7 percent increase took effect on January 1, 2023. If you received SSDI by direct deposit, the higher amount appeared in your bank account on your regular payment date in January. If you received a paper check, the amount on the check reflected the new rate. You did not need to contact Social Security or take any action to receive the raise.

The increase applied only to SSDI benefits themselves. If you also received Supplemental Security Income (SSI), a separate needs-based program, that program had its own COLA announcement and effective date. Some people receive both SSDI and SSI, and each program's increase was calculated separately.

What the 2023 increase meant for your other benefits

If you were receiving Medicare as an SSDI recipient, your Part B premium (the monthly charge for doctor visits and outpatient care) was deducted from your benefit increase. In 2023, the Part B premium rose to $164.90 per month for most beneficiaries. This meant that some of your COLA increase went directly to cover the higher premium, reducing the net increase in your actual payment.

If you had a representative payee — someone appointed to manage your benefits because you were unable to do so yourself — the increase still went to your account. The payee's role did not change, and they had no authority to refuse or redirect the COLA increase.

How COLA affects your work incentives

If you were working while receiving SSDI, the 2023 COLA increase did not change your work incentive programs. Plans to Achieve Self-Support (PASS) and Impairment Related Work Expenses (IRWE) continued to operate under the same rules. The higher benefit amount did not automatically trigger a medical review or affect your continued SSDI status based on work activity.

However, if you were approaching the Substantial Gainful Activity (SGA) earnings limit — the income threshold above which Social Security may determine you are no longer disabled — the COLA increase did not raise that threshold. The SGA limit for 2023 was $1,470 per month for non-blind individuals and $3,822 for blind individuals, set separately from the COLA calculation.

COLA announcements and future increases

Social Security announces each year's COLA in mid-October, effective the following January. The announcement is made on the Social Security Administration website and through press releases. You can sign up for email notifications through the Social Security website to receive the announcement automatically.

COLA percentages vary year to year based on inflation. The 8.7 percent increase in 2023 was unusually large. In 2024, the COLA was 3.2 percent. In 2025, it was 2.5 percent. These variations reflect actual inflation rates during the measurement periods, not policy changes or decisions by Social Security.

What to do if you did not receive the increase

If your January 2023 payment did not reflect the 8.7 percent increase, contact Social Security when ready. Call 1-800-772-1213 (TTY 1-800-325-0778) or visit your local Social Security office. Have your Social Security number and recent payment statements available.

Reasons your payment might not have increased include: a representative payee error, a payment hold due to a pending review, or a system error. Social Security can review your account and correct the issue. Do not wait — the longer you delay, the harder it becomes to recover back payments if an error occurred.

Frequently Asked Questions

Did the 8.7 percent increase explore to family members receiving benefits on my record?

Yes. If your spouse, ex-spouse, or children were receiving benefits based on your SSDI record, they received the same 8.7 percent increase in January 2023. Each person's individual benefit amount increased by that percentage.

Does COLA increase happen every year?

COLA increases happen most years, but not always. If inflation is zero or negative (deflation), there is no COLA increase that year. This last occurred in 2010 and 2011. When inflation exists, a COLA is calculated and applied automatically.

Can I request a larger increase or appeal the COLA amount?

No. The COLA is determined by a formula tied to inflation data published by the Bureau of Labor Statistics. It is not subject to individual requests or appeals. The same percentage applies to all SSDI recipients.

If I started SSDI in 2023, did I receive the full 8.7 percent increase?

Your initial benefit amount was calculated based on your earnings history at the time you started receiving benefits. The 8.7 percent increase applied to whatever amount you were approved for, whether you started before or after January 2023.

How does COLA affect my Medicare coverage?

COLA does not change your Medicare coverage itself. However, your Part B premium may increase separately. In 2023, the premium rose to $164.90 per month for most beneficiaries, and this amount was deducted from your SSDI payment before you received it.