Social Security benefit increases and Rhode Island’s higher minimum wage may affect the income and benefits of people with disabilities who work or receive public benefits. Understanding the changes, reporting earnings and getting benefits counseling can help people make informed decisions, avoid overpayments and maintain access to needed supports.
As we approach the new year, there are two important changes that may impact many individuals receiving Social Security and other public benefits: the 2027 Social Security Cost-of-Living Adjustment (COLA) and an increase in the Rhode Island minimum wage.
Social Security COLA Increases by 3.6% for 2027
The Social Security Administration announced a 3.6% Cost-of-Living Adjustment (COLA) for 2027. This increase will apply to both Social Security benefits and Supplemental Security Income (SSI) payments beginning in January 2027. The adjustment is designed to help beneficiaries keep pace with inflation. See the SSA's 2027 Cost-of-Living Adjustment (COLA) Fact Sheet for more information.
Key 2027 Work Incentive Figures
Some important employment-related Social Security changes include:
- Substantial Gainful Activity (SGA)
- For individuals who are not statutorily blind: Increases from $1,690/month to $1,770/month.
- For individuals who are statutorily blind: Increases from $2,830/month to $2,950/month.
- Trial Work Period (TWP)
- Increases from $1,210/month to $1,270/month.
- SSI Federal Benefit Rate
- Individual: Increases from $994/month to $1,029/month.
- Couple: Increases from $1,491/month to $1,544/month.
Rhode Island Minimum Wage Rises to $17 per Hour
Beginning Jan. 1, 2027, Rhode Island's minimum wage will increase from $16 to $17 per hour ($16.94 to $17.48 in Connecticut). This increase was established through state legislation signed in 2025 and is reflected on the Rhode Island Department of Labor and Training’s minimum wage schedule.
Potential Impact on Beneficiaries
For individuals with disabilities who are working or considering employment:
- Higher wages may increase overall earnings and financial independence.
- Workers receiving SSI or other income-based benefits may see changes in their benefit amounts as earnings increase.
- Individuals nearing Social Security work incentive thresholds should review how the wage increase could affect their situation.
- Benefits counseling and proactive planning can help maximize the advantages of increased earnings while minimizing surprises.
Importantly, some beneficiaries may see their earnings increase even if their work hours remain exactly the same. A raise resulting from the statewide minimum wage increase is still considered a change in earnings and should be reported.
Remember to Report Earnings Changes
Beneficiaries receiving SSI or SSDI should report the increase to Social Security, and individuals receiving Medicaid, SNAP, or other Department of Human Services (DHS) benefits should also report changes to DHS.
Timely reporting helps:
- Ensure benefit payments remain accurate.
- Prevent potential overpayments.
- Avoid interruptions in benefits or services.
- Reduce stress when benefit reviews occur.
As wages continue to rise, beneficiaries may reach important work incentive thresholds sooner than expected. Encouraging individuals to review their benefits and reporting responsibilities can help them take advantage of increased earnings while avoiding unintended consequences.
Need Assistance?
The Work Incentives Planning and Assistance (WIPA) program can help beneficiaries understand how changes in wages, Social Security benefits, and public benefits may affect their individual circumstances. If you have questions about how these changes may affect you, or if you are supporting someone who does, please reach out for benefits counseling.