Changes taking effect in August 2025

Social Security announced several rule changes that take effect in August 2025. The most significant is an increase in the Supplemental Security Income (SSI) federal benefit rate, which rises from $943 to $967 per month for individuals and from $1,415 to $1,450 for couples. This is the annual cost-of-living adjustment (COLA), calculated based on inflation from the previous year.

A second change affects how work incentives are calculated for people receiving Social Security Disability Insurance (SSDI). The Substantial Gainful Activity (SGA) threshold — the income level above which Social Security considers you to be working — increases from $1,550 to $1,600 per month. If you earn more than this amount, Social Security may reduce or stop your benefits, so the higher threshold gives you more room to work without losing coverage.

The Trial Work Period (TWP) earnings limit also increases. During your TWP, you can earn any amount without affecting your benefits. In August 2025, a month counts toward your TWP only if you earn $1,090 or more (up from $1,050). This means you have slightly more flexibility in how you structure your work during this nine-month window.

Key Takeaways

  • SSI federal benefit rates increase to $967 for individuals and $1,450 for couples, effective August 2025.
  • The SGA threshold for SSDI beneficiaries rises to $1,600 per month, meaning you can earn more before Social Security reduces your benefits.
  • Trial Work Period earnings must reach $1,090 per month to count toward your nine-month window.
  • These changes apply automatically; you do not need to contact Social Security to receive the increase.
  • State SSI supplements may also increase, but the amount varies by state and is not set by federal rule.

How the cost-of-living adjustment works

The annual COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Social Security calculates the percentage increase from the third quarter of the previous year to the third quarter of the current year, then applies that percentage to all benefit amounts. For August 2025, the COLA is 2.5 percent.

If you receive Social Security retirement, SSDI, or SSI, the increase happens automatically. You will see the higher amount in your August payment. Spouses and children who receive benefits on your record also receive the same percentage increase. There is no action required on your part.

Not all benefit programs receive COLA increases. Veterans' benefits, Supplemental Nutrition Assistance Program (SNAP), and housing vouchers have their own adjustment schedules and formulas. If you receive multiple benefits, check with each program to learn when and how much your payment will change.

What the SGA threshold increase means for working beneficiaries

If you receive SSDI and work, Social Security uses the SGA threshold to decide whether you are still disabled. The rule is straightforward: if you earn more than $1,600 per month consistently, Social Security assumes you are working at a substantial level and may end your benefits. If you earn $1,600 or less, you remain on benefits regardless of how many hours you work.

The increase from $1,550 to $1,600 gives you an extra $50 per month of earnings before triggering a benefit review. This matters most if you are close to the threshold. For example, if you currently earn $1,575 per month, you were at risk of losing benefits; at the new threshold, you have a small cushion.

The SGA threshold does not apply to Supplemental Security Income (SSI). SSI uses a different earnings exclusion: the first $65 of monthly earnings plus half of remaining earnings are not counted. This exclusion does not change in August 2025.

Trial Work Period and Extended may be able to access rules

The Trial Work Period is a nine-month window during which you can test your ability to work without losing SSDI benefits, no matter how much you earn. To count a month toward your TWP, you must earn at least $1,090 in that month (the new August 2025 amount). You do not have to use nine consecutive months — you can spread them out over a longer period.

After your TWP ends, you enter the Extended may be able to access Period, which lasts 36 months. During this time, you keep your benefits in any month you earn $1,600 or less. Once you earn more than $1,600 in a month, your benefits stop for that month, but they restart automatically if your earnings drop below the threshold again.

If you are unsure whether you are currently in a TWP or Extended may be able to access Period, contact Social Security directly. Your local field office can pull your work history and tell you exactly where you stand. This information is important before you take a job or increase your hours.

State SSI supplements and how they vary

Many states add money to the federal SSI benefit rate. These state supplements are not set by federal rule and vary widely. Some states increase their supplements by a fixed amount each year; others tie them to inflation or cost of living in that state. A few states do not offer supplements at all.

If you receive SSI, your payment stub will show both the federal amount and any state supplement. In August 2025, your federal portion increases to $967 (or $1,450 for couples), but your state supplement may or may not change. Contact your state's Social Security office or your local Department of Social Services to learn whether your state is increasing its supplement and by how much.

The state supplement matters because it affects your total income and can change your standing for other programs. For example, some housing programs use your total SSI payment (federal plus state) to calculate your rent contribution. A state supplement increase could affect how much you pay for housing.

How these changes affect other benefits and programs

An increase in your Social Security payment may affect your standing for other means-tested programs. Medicaid, SNAP, housing vouchers, and other programs count your Social Security income when deciding whether you remain within income limits. A higher Social Security payment could push you over a limit and reduce or end benefits from another program.

This is most common with Medicaid and SNAP. If your Social Security increase moves you above your state's Medicaid income limit, you may lose coverage. Similarly, if your SNAP income limit is based on your total household income, a Social Security increase could reduce your food assistance. Contact each program you receive to ask how the August increase will affect your benefits.

Housing programs handle this differently. Most housing vouchers and public housing programs use a formula that counts a percentage of your income (often 30 percent) toward your rent. A Social Security increase will raise your rent contribution, but it will not end your housing assistance. Your housing authority will recalculate your rent and notify you of the new amount.

When and how you will see the changes

The August 2025 changes take effect on August 1, 2025. If you receive benefits by direct deposit, the new amount will appear in your bank account on the third day of the month (or the next business day if the third falls on a weekend or holiday). If you receive a paper check, it will arrive in the mail around the third of the month, though timing varies by location.

You will also receive a notice from Social Security explaining the change. This notice will show your old benefit amount and your new amount. Keep this notice for your records, especially if you need to report your income to other programs or if you have questions about the calculation.

If you do not see the increase by mid-August, contact Social Security. Call 1-800-772-1213 (TTY 1-800-325-0778) or visit your local field office. Have your Social Security number and a recent payment stub ready when you call.

Frequently Asked Questions

Do I have to do anything to get the increase?

No. The increase happens automatically. Social Security will deposit or mail your new payment amount in August without any action from you. You do not need to contact them or fill out any forms.

Will the increase affect my Medicare premiums?

Medicare Part B and Part D premiums are held harmless for most beneficiaries, meaning your premium cannot increase more than your Social Security increase. However, if you are a higher-income earner or newly enrolled in Medicare, different rules may apply. Review your Medicare notice for details.

What if I think the amount is wrong?

Contact Social Security at 1-800-772-1213 or visit your local field office. Bring your payment notice and any recent pay stubs if you work. Social Security can review your record and explain how the new amount was calculated.

Does the SGA increase apply to self-employed people?

Yes. If you are self-employed and receive SSDI, Social Security counts your net earnings (income minus business expenses). The $1,600 SGA threshold applies the same way. If your net self-employment income exceeds $1,600 per month, Social Security may review your disability status.

Can I still use work incentives like Impairment Related Work Expenses?

Yes. Work incentives are separate from the SGA threshold. You can deduct certain work-related expenses (like disability-related equipment or attendant care) from your earnings before Social Security counts them toward the SGA limit. The August 2025 changes do not affect how these deductions work.