The December 2025 Cost-of-Living Adjustment and Payment Increase

Social Security payments increase each December based on the Cost-of-Living Adjustment (COLA), which measures inflation over the past year. For December 2025, the COLA will determine how much larger your monthly check becomes starting that month. The exact percentage is set by the Social Security Administration in October each year, based on inflation data from the third quarter.

If you receive Social Security retirement, disability (SSDI), or survivor benefits, your payment will go up by the COLA percentage. This is automatic — you do not need to do anything to receive the increase. The higher amount appears in your bank account or arrives by mail on your regular payment date in December, depending on how you receive benefits.

The COLA affects not just individual payments but also the maximum amount you can earn before benefits are reduced if you are under full retirement age and still working. It also affects the earnings limit for Supplemental Security Income (SSI), another program that helps low-income seniors and people with disabilities.

Key Takeaways

  • Your Social Security payment amount increases in December each year by a percentage set in October, based on inflation from the previous months.
  • The increase is automatic for all beneficiaries receiving retirement, disability, or survivor benefits — no action is required on your part.
  • The same COLA percentage that raises your payment also raises the earnings limit if you work while receiving benefits before full retirement age.
  • SSI recipients and people who work while receiving benefits should review their earnings limits in December to understand how the change affects them.

How the COLA Percentage Is Calculated

The Social Security Administration calculates COLA by comparing the average Consumer Price Index (CPI) for July, August, and September of the current year to the same three months from the previous year. If prices have risen, the percentage increase becomes the COLA. If there is no increase or prices have fallen, COLA is zero — benefits do not decrease, but they stay the same.

The Social Security Administration announces the COLA in mid-October, so you will know the exact percentage before December arrives. This gives you time to plan your budget and understand how the change affects your household income. The announcement is posted on the official Social Security website and sent to beneficiaries by mail if they have requested it.

When the Increase Appears in Your Account

The December payment increase arrives on your regular payment date. Social Security pays beneficiaries on different dates depending on when they were born: typically the second, third, or fourth Wednesday of each month. Your payment date does not change in December — only the amount increases.

If you receive benefits by direct deposit, the higher amount lands in your bank account on your scheduled date. If you receive a paper check, it arrives by mail on or around your payment date. Some beneficiaries who receive Supplemental Security Income (SSI) get paid on the first, second, or third of the month instead, and their increase also arrives on their regular date.

Earnings Limits and Work Rules That Change in December

If you are under full retirement age and working while receiving Social Security, there is a limit to how much you can earn before your benefits are reduced. This limit changes each year based on the COLA. For 2025, the limit is a specific dollar amount; in December, it will increase to a new amount for 2026.

The rule works like this: for every two dollars you earn above the limit, Social Security reduces your benefit by one dollar. Once you reach full retirement age, there is no earnings limit — you can work as much as you want without losing benefits. The COLA increase means the threshold where reductions begin moves higher, which can mean more earnings before your check is affected.

If you are self-employed or have irregular income, the earnings limit still applies. You count net income from self-employment, not gross revenue. Unearned income like pensions, investment returns, or rental income does not count toward the limit.

Supplemental Security Income (SSI) Changes

SSI is a separate program from Social Security retirement and disability benefits. It provides monthly payments to people with low income and limited resources who are 65 or older, blind, or disabled. The federal payment amount for SSI increases each December by the COLA percentage.

SSI also has resource limits — the maximum amount of money and assets you can have and still receive benefits. These limits increase with COLA as well. If you receive SSI, the higher payment and higher resource limits take effect in December. Some states add their own money to the federal SSI payment, and those state supplements may also increase, though the timing and amount vary by state.

Medicare Premiums and Social Security Deductions

Many Social Security beneficiaries are enrolled in Medicare Part B (medical insurance) and Part D (prescription drug coverage). The premiums for these programs are often deducted directly from your Social Security check. In December, your gross payment increases by the COLA, but your net payment — the amount you actually receive — depends on whether your Medicare premiums have also changed.

Medicare premiums are set separately from Social Security COLA and can increase, decrease, or stay the same. If your Medicare premium increases by more than your COLA increase, your net Social Security payment could actually decrease. The Social Security Administration has a "hold harmless" rule that protects most beneficiaries from this situation, but it does not explore to everyone. Check your December payment to confirm the amount is what you expected.

What You Should Do Before December

Review your Social Security statement online through your my Social Security account to confirm your current payment amount and may support your personal information is correct. When the COLA is announced in October, compare the new amount to your current payment to verify the increase is accurate when it arrives in December.

If you work while receiving benefits, note the new earnings limit and track your income carefully to avoid unintended benefit reductions. If you receive SSI, confirm the new resource limits and payment amount. If you have questions about how the changes affect your specific situation, you can contact Social Security by phone at 1-800-772-1213 or visit your local Social Security office.

Frequently Asked Questions

Will my Social Security payment definitely increase in December 2025?

Your payment will increase if the COLA is greater than zero. COLA is based on inflation, so if inflation has occurred, your payment goes up. If there is no inflation or prices have fallen, COLA is zero and your payment stays the same. The exact percentage is announced in October.

Do I need to do anything to receive the December increase?

No. The increase is automatic for all beneficiaries. You do not need to contact Social Security or take any action. The higher amount appears in your account or arrives by mail on your regular payment date.

How much will my payment increase?

The increase percentage is the same for all beneficiaries and is announced in October. The dollar amount of your increase depends on your current payment — a higher current payment means a larger dollar increase, even though the percentage is the same for everyone.

If I work, how does the earnings limit change affect me?

The earnings limit increases in December, which means you can earn more money before your benefits are reduced. If you were close to the old limit, the increase gives you more room to work without losing benefits. The new limit applies starting in January 2026.

Will my Medicare premium come out of my Social Security increase?

Medicare premiums are deducted from your Social Security payment, so your net increase depends on whether your premium has changed. Most beneficiaries are protected from premium increases that exceed their COLA increase, but you should check your December payment to confirm the amount is correct.