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<tbody><tr valign="top">
<td width="25%" style="padding-left:20px" class="graycellblueruled-td"><span class="ninetypercent">
<p><a href="index.html">Automatic Determinations</a></p>
<p><a href="colasummary.html">Cost-of-Living Adjustment</a></p>
<p><a href="AWIgrowth.html">Graph of AWI series</a></p>
<p><a href="autoAdj.html">Recent indexed program amounts</a></p></span></td>
<td class="blueruled-td"><p>
<b>Latest index</b><br />
The national average wage index for 2023 is 66,621.80. The index is
4.43 percent higher than the index for 2022.</p>
<p><b>Indexed earnings used to compute initial benefits</b><br />
When we <a href="Benefits.html">compute a person's retirement benefit</a>, we
use the national <a href="#Series">average wage indexing series</a> to index
that person's earnings. Such <a href="awifactors.html">indexation</a> ensures
that a worker's future benefits reflect the general rise in the standard of
living that occurred during his or her working lifetime.
<p class="ninetypercent">
When indexing an individual's earnings for benefit computation purposes, we must
first determine the year of first eligibility for benefits. For retirement,
eligibility is at age 62. If a person reaches age 62 in 2025, for example,
then 2025 is the person's year of eligibility. We always index an individual's
earnings to the average wage level two years prior to the year of first
eligibility. Thus, for a person retiring at age 62 in 2025, we would index
the person's earnings to the average wage index for 2023, or 66,621.80.
We would multiply earnings in a year before 2023 by the ratio of 66,621.80
to the average wage index for that year; we would take earnings in 2023 or
later at face value. (See <a href="../ProgData/retirebenefit1.html">two
examples</a> of indexed earnings.)</p>
<p>
<b>Indexed program amounts</b><br />
We use the average wage indexing series to update several amounts that are
important to the operation of Social Security's Old-Age, Survivors, and
Disability Insurance (OASDI) program.
<ul><li>OASDI <a href="cbb.html">contribution and benefit base</a>
(also known as the taxable maximum)</li>
<li><a href="rtea.html">Retirement earnings test</a> exempt amounts</li>
<li>Formulas for a <a href="piaformula.html">primary insurance
amount</a> and <a href="familymax.html">maximum family benefits</a></li>
<li><a href="QC.html">Amount of earnings needed to earn a quarter of
coverage</a> ("credit")</li>
<li><a href="oldcbb.html">"Old-law" contribution and benefit base</a> (as
determined under the law as in effect before the 1977 amendments)</li>
<li><a href="CovThresh.html">Coverage thresholds</a> for both domestic
employees and election workers</li>
<li><a href="sga.html">Substantial gainful activity</a> amounts for
disabled beneficiaries and earnings that trigger a
<a href="twp.html">trial work period</a></li>
</ul>
<p>In addition, the Pension Benefit Guaranty Corporation uses the national average wage
index to compute premium rates for PBGC-insured plans, as required by section 4006 of ERISA.</p>
<p><b>Determination of the National Average Wage Index for 2023</b><br />
To determine the national average wage index for calendar year 2023, we multiplied the
2022 national average wage index of 63,795.13 by the percentage change in average
wages from 2022 to 2023, as measured by annual <a href="awidevelop.html">wage
data</a> we tabulated. The wage data are based on wages subject to Federal
income taxes and contributions to deferred compensation plans.</p>
<span class="ninetypercent">
The average amounts of wages calculated directly from our data were $61,220.07 and
$63,932.64 for 2022 and 2023, respectively. To determine the national
average wage index for 2023 at a level that is consistent with the national
average wage indexing series for prior years, we multiply the 2022 national
average wage index of 63,795.13 by the percentage change in average wages from
2022 to 2023 (based on our tabulated wage data). In other words, the national
average wage index for 2023 is 63,795.13 times 63,932.64 divided by 61,220.07,
which equals 66,621.80.</span></blockquote>
<p>
The complete average wage indexing series is shown below.</p>
</td></tr></table>
<a name="Series"></a><center><p class="pageBreak">
<table border="5" bordercolor="#ccddee" width="96%" cellpadding="5" cellspacing="0">
<caption><b>National average wage indexing series, 1951-2023</b></caption>
<tr align="center">
<td valign="top" width="33%">
<table width="72%" border="0" cellspacing="0">
<tr valign="bottom">
<th align="left" scope="col" class="blueruled-td">Year</th>
<th align="right" scope="col" class="blueruled-td">Index</th></tr>
<tr><td align="left">1951</td>
<td align="right">2,799.16</td></tr>
<tr><td align="left">1952</td>
<td align="right">2,973.32</td></tr>
<tr><td align="left">1953</td>
<td align="right">3,139.44</td></tr>
<tr><td align="left">1954</td>
<td align="right">3,155.64</td></tr>
<tr><td align="left">1955</td>
<td align="right">3,301.44</td></tr>
<tr><td align="left">1956</td>
<td align="right">3,532.36</td></tr>
<tr><td align="left">1957</td>
<td align="right">3,641.72</td></tr>
<tr><td align="left">1958</td>
<td align="right">3,673.80</td></tr>
<tr><td align="left">1959</td>
<td align="right">3,855.80</td></tr>
<tr><td align="left">1960</td>
<td align="right">4,007.12</td></tr>
<tr><td align="left">1961</td>
<td align="right">4,086.76</td></tr>
<tr><td align="left">1962</td>
<td align="right">4,291.40</td></tr>
<tr><td align="left">1963</td>
<td align="right">4,396.64</td></tr>
<tr><td align="left">1964</td>
<td align="right">4,576.32</td></tr>
<tr><td align="left">1965</td>
<td align="right">4,658.72</td></tr>
<tr><td align="left">1966</td>
<td align="right">4,938.36</td></tr>
<tr><td align="left">1967</td>
<td align="right">5,213.44</td></tr>
<tr><td align="left">1968</td>
<td align="right">5,571.76</td></tr>
<tr><td align="left">1969</td>
<td align="right">5,893.76</td></tr>
<tr><td align="left">1970</td>
<td align="right">6,186.24</td></tr>
<tr><td align="left">1971</td>
<td align="right">6,497.08</td></tr>
<tr><td align="left">1972</td>
<td align="right">7,133.80</td></tr>
<tr><td align="left">1973</td>
<td align="right">7,580.16</td></tr>
<tr><td align="left">1974</td>
<td align="right">8,030.76</td></tr>
<tr><td align="left">1975</td>
<td align="right">8,630.92</td></tr>
</table></td>
<td valign="top" width="33%">
<table width="72%" border="0" cellspacing="0">
<tr valign="bottom">
<th align="left" scope="col" class="blueruled-td">Year</th>
<th align="right" scope="col" class="blueruled-td">Index</th></tr>
<tr><td align="left">1976</td>
<td align="right">9,226.48</td></tr>
<tr><td align="left">1977</td>
<td align="right">9,779.44</td></tr>
<tr><td align="left">1978</td>
<td align="right">10,556.03</td></tr>
<tr><td align="left">1979</td>
<td align="right">11,479.46</td></tr>
<tr><td align="left">1980</td>
<td align="right">12,513.46</td></tr>
<tr><td align="left">1981</td>
<td align="right">13,773.10</td></tr>
<tr><td align="left">1982</td>
<td align="right">14,531.34</td></tr>
<tr><td align="left">1983</td>
<td align="right">15,239.24</td></tr>
<tr><td align="left">1984</td>
<td align="right">16,135.07</td></tr>
<tr><td align="left">1985</td>
<td align="right">16,822.51</td></tr>
<tr><td align="left">1986</td>
<td align="right">17,321.82</td></tr>
<tr><td align="left">1987</td>
<td align="right">18,426.51</td></tr>
<tr><td align="left">1988</td>
<td align="right">19,334.04</td></tr>
<tr><td align="left">1989</td>
<td align="right">20,099.55</td></tr>
<tr><td align="left">1990</td>
<td align="right">21,027.98</td></tr>
<tr><td align="left">1991</td>
<td align="right">21,811.60</td></tr>
<tr><td align="left">1992</td>
<td align="right">22,935.42</td></tr>
<tr><td align="left">1993</td>
<td align="right">23,132.67</td></tr>
<tr><td align="left">1994</td>
<td align="right">23,753.53</td></tr>
<tr><td align="left">1995</td>
<td align="right">24,705.66</td></tr>
<tr><td align="left">1996</td>
<td align="right">25,913.90</td></tr>
<tr><td align="left">1997</td>
<td align="right">27,426.00</td></tr>
<tr><td align="left">1998</td>
<td align="right">28,861.44</td></tr>
<tr><td align="left">1999</td>
<td align="right">30,469.84</td></tr>
<tr><td align="left">2000</td>
<td align="right">32,154.82</td></tr>
</table></td>
<td valign="top" width="33%">
<table width="72%" border="0" cellspacing="0">
<tr valign="bottom">
<th align="left" scope="col" class="blueruled-td">Year</th>
<th align="right" scope="col" class="blueruled-td">Index</th></tr>
<tr><td align="left">2001</td>
<td align="right">32,921.92</td></tr>
<tr><td align="left">2002</td>
<td align="right">33,252.09</td></tr>
<tr><td align="left">2003</td>
<td align="right">34,064.95</td></tr>
<tr><td align="left">2004</td>
<td align="right">35,648.55</td></tr>
<tr><td align="left">2005</td>
<td align="right">36,952.94</td></tr>
<tr><td align="left">2006</td>
<td align="right">38,651.41</td></tr>
<tr><td align="left">2007</td>
<td align="right">40,405.48</td></tr>
<tr><td align="left">2008</td>
<td align="right">41,334.97</td></tr>
<tr><td align="left">2009</td>
<td align="right">40,711.61</td></tr>
<tr><td align="left">2010</td>
<td align="right">41,673.83</td></tr>
<tr><td align="left">2011</td>
<td align="right">42,979.61</td></tr>
<tr><td align="left">2012</td>
<td align="right">44,321.67</td></tr>
<tr><td align="left">2013</td>
<td align="right">44,888.16</td></tr>
<tr><td align="left">2014</td>
<td align="right">46,481.52</td></tr>
<tr><td align="left">2015</td>
<td align="right">48,098.63</td></tr>
<tr><td align="left">2016</td>
<td align="right">48,642.15</td></tr>
<tr><td align="left">2017</td>
<td align="right">50,321.89</td></tr>
<tr><td align="left">2018</td>
<td align="right">52,145.80</td></tr>
<tr><td align="left">2019</td>
<td align="right">54,099.99</td></tr>
<tr><td align="left">2020</td>
<td align="right">55,628.60</td></tr>
<tr><td align="left">2021</td>
<td align="right">60,575.07</td></tr>
<tr><td align="left">2022</td>
<td align="right">63,795.13</td></tr>
<tr><td align="left">2023</td>
<td align="right">66,621.80</td></tr>
</table></td>
</tr></table></p></center>
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