Many individuals seeking representation in obtaining their Social Security disability benefits (SSDI) or dealing with a denial of benefits take comfort in learning that their legal fees can be paid directly by the Social Security Administration (SSA).

The SSA allows a representative to recover either a contingency fee of 25 percent of past due benefits or up to a cap of $6,000, whichever is less. Congress set the $6,000 cap in 2009. However, effective November 30, 2022, this cap will be raised to $7,200.

This is good news for agents or other professionals who represent SSDI claimants and can now be compensated at a higher rate for their services. Some prefer a capped rate because they are usually paid faster by SSA than a contingency fee.

After much advocacy, the SSA and federal government have come to understand that Social Security disability representatives need to address rising inflation rates and account for the past 13 years in which Congress approved no fee increases in their compensation rate.

Read a copy of the SSA notice.