I have filed and suspended and my wife will file a restricted application to receive only spousal benefits. My question is about recalculation of my FRA benefit. I continue to work and my annual income has resulted in a recalculation and increase in my FRA benefit. After my wife begins receiving her spousal benefit will her spousal benefit also be increased based on the increases in my recalculated FRA benefit?
Yes, if you continue working and earn enough to cause an increase in your primary insurance amount (PIA), you wife's spousal benefit rate will increase as well. Spousal benefits are based on 50% of the worker's PIA (https://www.ssa.gov/OACT/quickcalc/spouse.html).
Hopefully, you suspended your benefits prior to the April 30 2016 deadline (https://www.ssa.gov/planners/retire/suspendfaq.html). Otherwise, your wife wouldn't be able to receive spousal benefits while your benefits are in suspense.