How Much Does Short Term Disability Pay in California?

California State Disability Insurance (SDI) is a state-mandated program providing short-term wage replacement benefits to eligible workers. It offers financial support when an individual is unable to work due to a non-work-related illness or injury, including pregnancy and childbirth. This program operates through employee payroll deductions, ensuring workers contribute to the fund that provides these benefits.

Qualifying for California SDI

To be eligible for California SDI benefits, individuals must meet specific criteria. A primary requirement is the inability to perform regular or customary work for at least eight consecutive days due to a non-work-related illness, injury, or pregnancy. This disability must be certified by a licensed physician or practitioner, who also provides ongoing care throughout the benefit period.

Applicants must have been employed or actively seeking work at the time their disability began, experiencing a loss of wages as a direct result. A financial condition involves having earned at least $300 in wages during their SDI “base period,” with State Disability Insurance deductions withheld from those earnings. The base period is a 12-month timeframe that begins approximately 17 months before the disability claim starts and ends about 5 months prior.

This base period is divided into four calendar quarters, and the quarter in which an applicant earned the highest wages is used to determine the benefit amount. Most California employees are automatically covered through payroll taxes, but self-employed individuals can elect coverage.

Determining Your Weekly Benefit Amount

The weekly benefit amount for California SDI is calculated based on an individual’s earnings during their highest-earning quarter within the base period. The Employment Development Department (EDD) determines this amount as a percentage of those average weekly wages. For most claimants, this percentage ranges from 60% to 70%, though lower-income individuals may receive up to 90%.

As of 2025, the minimum weekly benefit amount an eligible individual can receive is $50. The maximum weekly benefit amount for 2025 is set at $1,681. The EDD calculates benefits on a daily basis, with the total weekly payment based on these daily calculations.

The exact amount received depends directly on the wages earned in the qualifying base period. If an individual’s highest-earning quarter had significant income, their weekly benefit will be closer to the maximum cap. The state regularly adjusts the maximum weekly benefit amount to account for inflation and economic changes.

How Long Benefits Last and Waiting Period

California SDI benefits last for a maximum of 52 weeks. This duration applies as long as the medical provider certifies the continued inability to work due to the disability. The total amount received cannot exceed the total wages earned in the base period, or 52 times the weekly benefit amount, whichever is less.

Before benefits begin, there is a mandatory 7-day unpaid waiting period. This waiting period commences on the first day an individual is unable to perform their regular work due to the disability, not on the date the application is filed. Payments will start on the eighth day of the disability.

In some situations, if an individual returns to work part-time while still disabled, and their combined earnings and partial SDI benefits do not exceed their prior full-time wages, they may receive benefits for longer than 52 weeks. This allows the total eligible benefit amount to be disbursed over an extended period to replace lost income without exceeding pre-disability earnings.

Steps to Apply for Benefits

Applying for California SDI benefits involves a structured process, primarily managed through the Employment Development Department (EDD). The most efficient way to apply is online via SDI Online, accessible through a myEDD account. This platform allows for secure submission of claim forms and related documentation.

Applicants must gather essential information, including:
Their Social Security number.
California Driver’s License or ID card number.
Details of their most recent employer.
The last date they worked their normal duties.
After submitting the claimant’s portion of the application online, a receipt number is provided, which must be given to the licensed health professional. This professional then submits the required medical certification online, confirming the disability and its expected duration.

While online submission is recommended for faster processing, applications can also be submitted by mail using paper forms. The EDD processes claims and determines eligibility within 14 days of receiving a complete application, though overall processing can take three to five weeks. Delays can occur if information is missing or inconsistent, or if the medical provider is slow to submit their certification.

Tax Implications of Benefits

California SDI benefits receive tax treatment at both the state and federal levels. For state tax purposes, California does not tax SDI benefits. This means that individuals receiving these disability payments are not required to report them as taxable income on their California state tax returns.

However, the federal tax treatment of SDI benefits can differ under certain circumstances. While often not federally taxable, these benefits may become taxable if they are received as a substitute for Unemployment Insurance (UI) benefits. This situation can arise if an individual was receiving UI benefits and then transitioned to SDI due to a disability.

If any portion of the SDI benefits is considered federally taxable, the EDD will issue a Form 1099-G, which indicates the taxable amount. Since California SDI is funded through employee payroll deductions, the general rule is that benefits are not federally taxable unless they replace unemployment compensation.