--- title: Social Security COLA:  2.5% Increase for 2025 description: Learn about the Social Security Administration's 2.5% COLA increase for 2025 and its impact on benefits and taxable earnings. Stay informed with the latest updates. image: https://www.covisum.com/hubfs/2.5increase_BlogHeader.png --- [Login](https://www.covisum.com/login-experience) | [Call: 402-235-4500](tel:1-402-235-4500) | [Contact Us](https://www.covisum.com/contact) ** [![covisum-logo](https://www.covisum.com/hs-fs/hubfs/covisum-logo.png?width=264&height=41&name=covisum-logo.png "covisum-logo")](https://www.covisum.com/) [![Start Your Free Trial](https://no-cache.hubspot.com/cta/default/2755909/b23743cd-d0df-4907-a66d-293b58ab1164.png)](https://cta-redirect.hubspot.com/cta/redirect/2755909/b23743cd-d0df-4907-a66d-293b58ab1164) [![Contact Us](https://no-cache.hubspot.com/cta/default/2755909/6c6d7fe7-e094-4fc0-9c82-d93d4ccbb532.png)](https://cta-redirect.hubspot.com/cta/redirect/2755909/6c6d7fe7-e094-4fc0-9c82-d93d4ccbb532) # Social Security COLA:  2.5% Increase for 2025 [SOCIAL SECURITY  |  ](https://www.covisum.com/blog/topic/social-security)10/11/24 12:24 PM  |  by [Jackie Kleckner](https://www.covisum.com/blog/author/jackie-kleckner) On October 10, 2024, the [Social Security Administration](https://www.ssa.gov/news/press/releases/2024/#2024-10-10) (SSA) declared a 2.5 percent increase in the monthly Social Security benefits. This Cost of Living Adjustment (COLA) is aimed at preserving the purchasing power of Social Security and Supplemental Security Income benefits against inflation. The increase is determined by the percentage change 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. If there is no increase, or if there is a decrease in the index, there will be no COLA. The CPI-W is calculated by the Bureau of Labor Statistics in the Department of Labor and is the official measure used by the Social Security Administration to compute COLAs by law. The COLA provision was introduced by Congress as part of the 1972 Social Security Amendments, and automatic annual COLAs commenced in 1975. Prior to that, benefits were increased only through special legislation enacted by Congress. Starting in 1975, Social Security implemented automatic annual cost-of-living adjustments, linking COLAs to the yearly rise in the Consumer Price Index, according to the SSA. Noteworthy changes for 2025 include: - The **maximum taxable earnings** amount, subject to the Social Security tax will rise to **$176,100**. - The **earnings test thresholds** for 2025 will increase from $22,320 to **$23,400** for all years before a beneficiary's full retirement year. In the year a worker reaches full retirement age, the earnings threshold will increase from $59,520 to **$62,160**, affecting all months before the beneficiary's date of birth. For a list of the updates, print or download a copy of the [2025 Social Security Fact Sheet](https://www.covisum.com/hubfs/colafacts2025.pdf) and keep it accessible for your clients' inquiries. 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