The effect of the increase will approximately be $23 per month. However, it is likely that a great portion of this increase will be used to pay for higher Medicare premium contributions, which are normally deducted from the social security paychecks.
The adjustment on the COLA was computed based on the increment in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The increase in COLA is directly related to any increase in the CPI-W. Otherwise, there would be any need to increase the COLA, as were the cases in 2010 and 2011.
The SSA also increased the maximum amount of revenues subjected to the social security tax to $113,700 (from $110,100 in the previous years). This increase will result in approximately $10 million in taxes.
More details about the COLA increased can be accessed from the SSA website.