There is a long list of events that occurred in 2025 that will probably make it into the history books – some good, some bad, and some still to be determined. While there were many notable events that made the news, other important changes occurred that didn’t make headlines but will nevertheless impact millions of people, specifically regarding workers’ compensation and Social Security Disability benefits. Let’s take a look.
Workers’ Compensation
According to the Bureau of Labor Statistics, approximately 2.8 million workers in the U.S. experience a work-related injury or illness each year, and roughly 4.9 million applications are filed for workers’ compensation annually. It’s estimated that workers’ comp claims pay out more than $62 billion each year (data for 2025 is not yet available). All of which makes this important program a vital safety net for workers. Fortunately, most of the changes made to workers’ comp this year were positive, including the following:
- Higher disability benefits: Injured workers in some states, including Washington and California, will receive higher weekly disability payments due to increased benefit rates. These increases were made due to factors such as rising medical costs and wage inflation. Other states like North Dakota, Connecticut, and Colorado may also adjust rates in the coming year. In New York, the minimum and maximum weekly benefit for injuries that occurred in 2025 have increased. The new minimum in New York increased to $325 per week from $275 in 2024, for temporary or permanent partial disability, while the maximum increased from $1,171.46 to $1,222.42.
- Expanded mental injury claims: In New York, workers’ compensation law expanded to allow any employee to file a claim for mental injury from “extraordinary work-related stress.” This law, which went into effect on January 1, 2025, is a major expansion of coverage, as previously only first responders facing post-traumatic stress disorder were eligible for these benefits. Overall, there is a growing focus on mental health in the workplace, with expanded access to care in many states. This is good news!
- Simplified Claims Processes: Across the board, the workers’ compensation system is introducing updates and modernizing systems to simplify the claims process. Hopefully, these changes will help speed things up and help workers receive benefits in a more timely manner!
Social Security Disability Insurance
As of late 2024, approximately 8.3 million people were receiving Social Security Disability Insurance (SSDI) benefits (2025 data is not yet available). Like workers’ comp, SSDI provides a vital lifeline for millions of people. This federal program provides monthly payments to people with disabilities who are no longer able to work and who have paid into Social Security through payroll taxes. And like workers’ comp, this program saw a few changes in 2025, including:
- Cost-of-Living Adjustment (COLA): In 2025, SSDI saw a 5% cost-of-living (COLA) adjustment resulting in a small increase in monthly payments. The average SSDI payment increased from $1,542 to $1,580. Following a 3.2% uptick in 2024, this is the smallest increase since 2020. The good news is that another COLA adjustment of 2.8% will go into effect in 2026.
- Substantial Gainful Activity (SGA) threshold: It sounds complicated, but the SGA threshold simply determines how much SSDI beneficiaries can earn while still qualifying for benefits. In 2025, that threshold increased from $1,550 to $1,620 per month for non-blind individuals, and from $2,590 to $2,700 per month for blind individuals. This allows a bit more flexibility for those who want to work part-time without losing eligibility.
- Change in retirement age: Full retirement age (the age you need to be in order to collect your full Social Security benefits) has been gradually increasing over the years. In 2026, that age will be 67 for those born in 1960 or later. While you’re allowed to claim SS benefits as early as age 62, the amount you receive is permanently reduced if you start collecting those benefits before full retirement age. This affects those individuals receiving SSDI because those benefits automatically convert to SS retirement benefits at full retirement age – though the amount you receive stays the same.
- Access to services: People receiving social security or SSDI benefits, can now access their accounts online on the SSA website. The initial plan to end telephone applications for benefits and direct deposit changes was reversed, so individuals can still get access by telephone, as well as online.
It’s been said that nothing is permanent except change. In fact, you can bet that more changes will be announced to these programs in the new year. While change is inevitable (and mostly out of our control), it’s wise to stay informed of what is changing and how those adjustments will impact you and your family so you can plan for the future and ensure financial stability.
If you have questions regarding workers’ compensation or SSDI, or need assistance with a new claim or a claim that has been denied, The Disability Guys are here to help. Our experienced attorneys stay up to date with changes to these programs and have the expertise to guide you through the process. Call us at 866-205-2415 for your free consultation today.
Here’s to a happy, healthy new year – one filled with positive changes!