With the new year comes an extra bit of relief for those who receive Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits. The annual Cost of Living Adjustment (COLA) rates are based on the Consumer Price Index, a measure of the average change in prices for the nation’s goods and services. In 2025, the COLA adjustment brings a 2.5% increase in benefits for SSDI and SSI recipients.
How does COLA help those who are receiving Social Security Disability Insurance (SSDI)?
The annual COLA rate affects Social Security’s Substantial Gainful Activity level and many work incentives. In 2024, for instance, a disabled worker on SSDI and earning less than $1,550 per month could still be eligible for benefits after their Trial Work Period ended. In 2025, the new SGA level for disabled workers is $1,620. This means a disabled worker can earn an extra $70 more per month ($840 per year) and still qualify for benefits. For blind individuals, the new SGA level is $2,700 (compared to $2,590 for 2024). This means a blind individual can earn $110 more per month ($1,320 per year) than in 2024.
Does COLA also help Supplemental Security Income (SSI) recipients?
Yes, COLA also affects recipients of SSI. In 2024, the maximum SSI payment was $943. In 2025, the new SSI rate is $967, an increase of $24 per month. The Social Security Administration also ensures that working students with disabilities who are using the Student Earned Income Exclusion can keep more of their SSI check. In 2025, the Social Security Administration (SSA) will not count the first $2,350 per month ($9,460 annually) of earned income when calculating the student’s monthly SSI payment. This is a powerful incentive for students to try working.
What is the role of an employment specialist?
The most important piece of information to share with SSDI and SSI recipients is that they must report employment and earnings to the SSA. As an employment specialist or consultant, you can support people with reporting their earnings, which is much simpler than you might think.
Here are some tips to share with those beneficiaries you’re assisting:
- Report employment to the SSA as soon as work begins and continue reporting, no later than the 10th of the month.
- Submit earnings reports to all agencies coordinating need-based benefits (for example, the Indiana Department of Family Resources, if receiving Medicaid or SNAP).
- Keep a receipt if they took their paystubs to an SSA office—it is proof of reporting.
- Store original paystubs and receipts in a safe, easily accessible location.
- Report other changes (e.g., student status, marital status, living arrangement).
- Respond promptly to all mail that comes from the SSA or other agencies.
- Contact the SSA for questions via phone, mail, in-person, or My Social Security account.
Regular reporting eliminates complications and sets a successful employment path.
Failure to report can lead to reduced or stopped benefits, which may cause people to panic and quit their jobs. Quitting a job because of disrupted benefits will lead to reduced overall financial resources. Let’s work to not let these missteps stand in the way of successful employment in 2025.
You can help by educating and assisting individuals with reporting from the start of employment. This assistance will develop a reporting habit that can continue throughout their career, even after your services have ended. By adding reporting education to your regular employment support, you will be handing your clients the keys to a more financially secure future.
Have more questions?
Contact a Benefits Information Network (BIN) Liaison. Many community rehabilitation providers in Indiana have certified BIN Liaisons on staff. For a referral, contact your consumer’s Vocational Rehabilitation Counselor or talk to your co-workers. You may have a BIN Liaison in your own agency!
Resources
- Social Security Administration Cost-of-Living Adjustment (COLA) Information
- Benefits Information Fact Sheets from the Center on Community Living and Careers (CCLC)
- Benefits Information Network Training webpage from the Center on Community Living and Careers (CCLC)
- Work & Disability: Benefits, Incentives, and Asset Building
- Let’s Talk Benefits Series
- The League Benefits Series