The main changes to Social Security Disability in 2025

Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are getting three concrete changes in 2025: the monthly payment amount is increasing, the earnings limit for work incentives is rising, and the cost-of-living adjustment (COLA) is being applied. The payment increase happens automatically in January each year based on inflation from the previous year. The earnings threshold — the amount you can earn before it affects your benefits — also increases annually. If you receive either SSDI or SSI, you will see these changes reflected in your January payment and your Social Security statement.

These changes affect roughly 8 million people on SSDI and 7 million on SSI. The increases are modest but real. You do not need to do anything to receive them — Social Security applies them automatically. However, if you work or are thinking about working, the higher earnings limit may open new options for you under the work incentive programs.

Key Takeaways

  • Your monthly SSDI or SSI payment will increase in January 2025 based on the annual cost-of-living adjustment, which is set each October.
  • The earnings limit for the Trial Work Period and other work incentives increases each year, allowing you to earn more before benefits are affected.
  • If you work, you should report your earnings to Social Security to avoid overpayments and keep your benefits accurate.
  • The changes are automatic — you do not need to contact Social Security or take any action to receive the increase.
  • Work incentive programs like Impairment Related Work Expenses (IRWE) and Plans to Achieve Self-Support (PASS) have their own rules that may also change.

How much the monthly payment is increasing

The exact dollar amount of your increase depends on what you currently receive. Social Security calculates the annual COLA by measuring inflation in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the third quarter of the current year. The 2025 COLA percentage is set in October 2024 and applied to all payments starting in January 2025.

You will see the new amount on your January payment and in your updated Social Security statement. If you have questions about the exact dollar increase for your situation, you can call Social Security at 1-800-772-1213 or visit your local Social Security office. They can tell you your specific new payment amount before January arrives.

The increase applies to your primary insurance amount — the base payment you receive. If you have dependents who receive benefits based on your record, their payments increase by the same percentage.

Changes to the earnings limit for work incentives

If you work while receiving SSDI, the Trial Work Period allows you to earn money without losing benefits for nine months. The earnings threshold for the Trial Work Period increases each year. Once you exceed the monthly earnings limit during a Trial Work Period month, that month counts toward your nine-month total, even if you earn below the limit in other months.

After your Trial Work Period ends, the Extended may be able to access Period gives you 36 additional months where you can work and still receive benefits, but your earnings are tested more strictly. If you earn above the Substantial Gainful Activity (SGA) level — a separate threshold that also increases annually — your benefits stop. The SGA amount for 2025 will be announced by Social Security in October 2024.

For SSI recipients, the earnings rules are different. SSI has its own monthly earnings exclusion (the amount you can earn before it reduces your payment) and a different calculation for how earnings affect your benefit. The exclusion amount also increases with COLA.

What you need to do if you work

If you are working or planning to work, report your earnings to Social Security every month. You can report online through your my Social Security account, by phone, or in person at your local office. Reporting accurately prevents overpayments — money Social Security may ask you to repay later if your earnings were higher than you reported.

Keep records of your pay stubs, hours worked, and any self-employment income. If you are self-employed, the rules are more complex because Social Security counts your net profit, not gross income, and uses a different calculation method. If you are unsure how to report self-employment income, ask Social Security before you start — they have specific forms and worksheets for this.

If you receive SSI and work, you may also be able to use a Plan to Achieve Self-Support (PASS) to set aside income and resources for a work goal without losing your SSI payment. PASS has its own rules and requires a written plan, but it can allow you to earn significantly more than the standard SSI limit.

How the changes affect SSI recipients differently

SSI and SSDI are separate programs with different rules, even though both are run by Social Security. SSI is means-tested, meaning your income and resources affect your payment amount. SSDI is based on your work history and is not means-tested. The COLA increase applies to both, but SSI has additional resource limits and income exclusions that do not change with COLA.

For SSI, the resource limit (the total amount of money and property you can own) stays the same year to year — it does not increase with COLA. This means the gap between what you can own and what inflation costs you to live on grows slightly each year. However, certain resources do not count toward the limit: your home, one vehicle, personal items, and money set aside in a PASS.

If you receive both SSDI and SSI (called "concurrent benefits"), the COLA increase applies to your SSDI payment first, and then Social Security recalculates your SSI payment based on your new total income. This can sometimes result in a smaller SSI increase than the COLA percentage, because more of your SSDI counts as income.

Work incentive programs that may help you earn more

Social Security offers several work incentive programs designed to let you test your ability to work without immediately losing all your benefits. The Trial Work Period is the most common: you can work and earn any amount for nine months without affecting your SSDI payment. After those nine months, your benefits are tested against your earnings.

Impairment Related Work Expenses (IRWE) allow you to deduct certain costs of working — like medical equipment, therapy, transportation, or attendant care — from your countable earnings. If you have high work-related expenses, IRWE can lower the amount Social Security counts as income, protecting your benefits even when you earn more.

A Plan to Achieve Self-Support (PASS) lets you set aside income and resources for a specific work goal — like education, training, or starting a business — without losing SSI. You write a plan with a goal and timeline, and money you set aside for that goal does not count as income or resources. PASS is complex and requires Social Security approval, but it can be powerful if you have a clear work goal.

When to expect the changes in your payment

The payment increase takes effect in January 2025. You will see the new amount in your January payment, which typically arrives on the third day of the month (or the first business day after if the third falls on a weekend or holiday). Your updated Social Security statement, showing your new monthly payment amount, will be mailed to you or available in your my Social Security account.

If you have direct deposit set up, the payment will go to your bank account on the regular schedule. If you receive a paper check, it will arrive by mail. If you receive your payment on a Representative Payee card (a debit card issued by Social Security), the new amount will be loaded onto your card on the payment date.

If you do not see an increase by mid-January, contact Social Security to verify your account. Payment delays are rare, but they do happen. You can call 1-800-772-1213 or check your my Social Security account online.

Frequently Asked Questions

Will the increase affect my Medicare premiums?

Your Medicare Part B and Part D premiums are deducted from your Social Security payment. If your payment increases, your premiums may also increase, so your net increase could be smaller than the COLA percentage. Social Security will show your new premium amount on your updated statement.

Do I have to report the increase to other programs I receive?

If you receive Medicaid, SNAP, housing assistance, or other means-tested benefits, the increase in your Social Security payment may affect your income limit for those programs. Contact the agencies that run those programs to report the change. Some programs have automatic data-sharing with Social Security, but others require you to report it yourself.

What if I disagree with my new payment amount?

Contact Social Security immediately to ask them to review your account. You can call 1-800-772-1213, visit your local office, or use your my Social Security account to send a message. If you believe there is an error, Social Security can investigate and correct it. You have the right to appeal any decision about your benefits.

Can I work more hours now that the earnings limit is higher?

The higher earnings limit gives you more room to work, but the exact impact depends on your hourly wage and which work incentive program you are using. If you are in your Trial Work Period, you can earn any amount. If you are past that period, your benefits are affected once you earn above the SGA level. Talk to a work incentive planning specialist (available free through your state's Work Incentives Planning and Assistance program) to understand your specific situation.

Does the increase apply if I am not receiving payments yet?

If your case is pending — you have applied but Social Security has not yet approved you — the COLA increase will apply to your payment once you are approved. The increase is built into the benefit calculation, not added afterward. If you are denied and appeal, the COLA will apply to your approved amount if you win on appeal.