How SSDI Payments Are Calculated

Your SSDI payment amount is based on your average lifetime earnings before you became disabled, not on your current income or the severity of your condition. The SSA uses a formula called the Primary Insurance Amount (PIA) to determine your monthly benefit.

This means your initial SSDI benefit is generally the same no matter where you live—including in Alabama. However, there are several ways your benefit can increase over time.

1. Cost-of-Living Adjustments (COLA)

Each year, the SSA may apply a Cost-of-Living Adjustment (COLA) to SSDI payments. This adjustment helps your benefits keep up with inflation and rising living costs.

For example, in 2025, the COLA increase was 3.2%, meaning SSDI recipients saw their monthly payments rise automatically.

You don’t need to do anything to receive a COLA increase—it’s applied automatically to your benefit amount every January.

2. Family or Dependent Benefits

If you have dependents, such as a spouse or children, your total household SSDI benefits can increase. The SSA allows family members to receive additional benefits based on your work record.

Eligible dependents may include:

• Your spouse, if they are 62 or older (or caring for your child under 16).
• Your biological or adopted children under 18 (or under 19 if still in high school).
• In some cases, a disabled adult child.

The total amount your family can receive is typically capped at 150–180% of your SSDI benefit.

3. Back Pay and Retroactive Payments

If your SSDI application took months or years to approve, you may be entitled to back pay or retroactive benefits. These payments can significantly increase your first deposit.

• Back pay covers the time between your application date and your approval date.
• Retroactive pay may cover up to 12 months before your application if you can prove your disability began earlier.

These one-time increases can provide crucial financial relief for Alabama applicants who faced long wait times during the SSDI process.

4. Work Incentives and Trial Work Periods

If you decide to try returning to work, the SSA offers several programs that can temporarily increase your income without immediately losing your benefits.

During a Trial Work Period (TWP), you can earn more than the usual limit for up to nine months within a 60-month window while still receiving your full SSDI benefit.

After the TWP, you enter an Extended Period of Eligibility (EPE), where your benefits may continue for months depending on your income level. These programs allow SSDI recipients in Alabama to explore part-time work while maintaining financial stability.

5. Change in Family Circumstances

If your family situation changes—such as getting married, divorced, or having a child—your SSDI household benefit may change too. In some cases, adding a dependent can increase your total payment amount.

You should always report these changes to the SSA to ensure your payments remain accurate and up to date.

6. Other Income Adjustments

While SSDI is not needs-based, certain other benefits could affect your total take-home income. For example:

• Workers’ compensation or state disability benefits may temporarily reduce your SSDI payments.
• Once those benefits end, your SSDI payment could increase back to its full amount.

It’s important to report any change in income or other benefits to avoid overpayments or missed adjustments.

Does Alabama Offer State Increases for SSDI?

Unlike Supplemental Security Income (SSI), which some states supplement, Alabama does not add any state-based increase to SSDI benefits. SSDI payments are entirely federal, so every recipient receives the same base amount regardless of state.

However, Alabama SSDI recipients may still qualify for additional state programs such as Medicaid, food assistance, or property tax relief, which can indirectly help stretch your budget.

How to Check for SSDI Payment Increases

You can track and verify any SSDI payment changes by:

• Logging into your mySSA account at www.ssa.gov/myaccount.
• Reviewing your annual SSA benefit statement.
• Calling the SSA at 1-800-772-1213 for clarification on COLA adjustments or benefit changes.