How Does Social Security Calculate the SSDI and SSI COLA?
Federal law ties the annual COLA to changes in a number the government tracks called the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W for short.
The U.S. Bureau of Labor Statistics calculates the CPI-W each month. Social Security generally compares the average index for July, August and September (the third quarter) of the current year with the average for the same three months in the previous year.
For the 2026 COLA, the third-quarter CPI-W average for 2025 was about 2.8% higher than the same period in 2024, which set the COLA at 2.8%.
When the CPI-W doesn’t show a qualifying increase, people getting Social Security Disability may not receive a COLA the following year.
Again, a cost-of-living increase is common, but not guaranteed.
Here’s a quick history of Social Security COLAs. You can see how years with higher inflation had higher increases, and low-inflation years had smaller ones.
| Benefit Year | COLA |
|---|---|
| 2026 | 2.8% |
| 2025 | 2.5% |
| 2024 | 3.2% |
| 2023 | 8.7% |
| 2022 | 5.9% |
| 2021 | 1.3% |
| 2020 | 1.6% |
| 2019 | 2.8% |
| 2018 | 2.0% |
| 2017 | 0.3% |
The same percentage applies to SSDI and SSI, but your dollar amount is different because your COLA applies to the size of your own disability payments.
For SSDI, Social Security applies the COLA to the benefit amount based on your covered earnings history. A person receiving $1,000 per month would receive less cash for their increase than someone receiving $2,000.
For SSI, the COLA increases the maximum federal benefit rate, which is the starting point from which they deduct your other income, benefits or value of your living arrangements.
If your situation remains exactly the same, you’ll see the full COLA, but changes in your personal circumstances also change your final amount. The COLA isn’t the only thing that applies.
Your actual deposit may increase by less than the national cost-of-living increase because of:
- Medicare Part B or other Medicare premiums
- Recovery of a Social Security overpayment
- Federal tax withholding
- Child support or another permitted garnishment
- A workers’ compensation offset
- A change in household income
- A change in your SSI living arrangement
- Other benefit adjustments
A COLA changes your payment but not Social Security’s medical definition of a qualifying disability. You don’t have to prove your disability again.
It also doesn’t increase SSI’s resource limits. The resource limit sets how much you can have in savings, investments and real estate—not current income or other forms of benefits—and still qualify for SSI. It doesn’t change from year to year.
If you’re wondering if you might qualify for Social Security Disability payments, you can get a FREE consultation in Oregon with Wells, Manning, Eitenmiller & Taylor.
Common Questions About COLA in Oregon
Here are some of the most common questions the Oregon disability attorneys at Wells, Manning, Eitenmiller & Taylor hear about Social Security Disability cost-of-living increases.
Is there a Social Security Disability COLA every year?
It happens most years, but it’s not guaranteed. If prices in the economy haven’t been rising much (which has happened), there might not be a COLA.
Do I have to apply for a Social Security COLA?
No. Social Security applies the increase automatically to eligible benefits.
Is the COLA percentage different in Oregon compared to other places?
No. The federal COLA is the same throughout the country.
Does everyone receive the same dollar increase?
No. The percentage is generally the same, but the dollar increase depends on your existing benefit amount.
Will the COLA affect whether I medically qualify for disability?
No. It changes benefit payment amounts, not the medical qualification rules.
Can I challenge an incorrect Social Security payment?
You may have the right to appeal if Social Security incorrectly calculates or reduces your benefits. The notice should explain your deadline and appeal options.
Social Security notices can be difficult to interpret, particularly when one letter discusses the COLA along with Medicare, an overpayment or another adjustment.
Wells, Manning, Eitenmiller & Taylor disability lawyers can help you understand what Social Security decided and whether further action is necessary.
When you work with our firm to get disability benefits, a lawyer personally starts your case. You will not be shuffled from one unfamiliar representative to another or asked to repeatedly explain your health problems.
You just need financial relief. The system for calculating it and providing it is complicated. We can be your guide.
We’re with You Every Step of the Way
Whether you’re trying to determine if you’re qualified for disability benefits, you need help filing your application, or you received a denial notice and want another chance, our law firm helps from the beginning and stays by your side.
Have a Question about Disability Benefits?
Your health is bad. You can’t work. Your financial stability is threatened. So your head is swimming with questions. How will you get by? How does Social Security Disability work? We’ve gathered answers. See them here:
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