How Much Is Disability Benefits in California?

California’s State Disability Insurance (SDI) program offers temporary wage replacement benefits for eligible workers. It covers wage loss due to a non-work-related illness, injury, or pregnancy. The Employment Development Department (EDD) administers this mandatory, employee-funded insurance program. SDI provides a financial safety net, helping individuals manage expenses when they cannot work due to qualifying medical conditions.

California State Disability Insurance (SDI) Benefit Calculation and Amounts

The amount of SDI benefits is primarily determined by earnings during a “base period.” The Employment Development Department (EDD) uses this 12-month timeframe, divided into four quarters, to calculate the weekly benefit amount. This base period generally covers the 5 to 18 months before the disability claim begins.

The weekly benefit amount is calculated using the quarter in the base period with the highest wages. For claims beginning on or after January 1, 2024, the weekly benefit is approximately 60 to 70 percent of these wages. This percentage aims to replace a portion of lost income. The specific percentage depends on total earnings in that quarter, with lower earners typically receiving a higher percentage replacement.

The EDD calculates the weekly benefit based on the highest quarterly earnings. There are statutory minimum and maximum weekly benefit amounts that apply regardless of earnings. For claims beginning on or after January 1, 2024, the minimum weekly benefit amount is $50.

The maximum weekly benefit amount for claims beginning on or after January 1, 2024, is $1,620. This maximum applies even if a higher percentage of earnings would result in a greater figure. Total earnings considered for SDI calculation are capped by the annual maximum taxable wage limit for SDI contributions, which is $164,600 for 2024.

Duration of SDI Benefits

Individuals approved for SDI benefits can receive payments for a defined period, subject to continued medical certification. The maximum duration for a single disability claim is 52 weeks. This period can include intermittent periods of disability.

The actual length of time benefits are received depends on the medical condition and recovery. A licensed health professional must certify the disability and provide ongoing medical updates to the EDD. Benefits continue only as long as medical certification supports the individual’s inability to perform regular work duties due to the non-work-related illness or injury.

If an individual recovers and returns to work before exhausting the 52-week maximum, their benefits will cease. Should the same or a related disability recur within 14 days of returning to work, the individual may reopen their claim without a new waiting period. The duration of payments is strictly tied to medical necessity and the 52-week limit.

Taxability of SDI Benefits and Coordination with Other Income

SDI benefits have specific tax implications at both federal and state levels. Federally, SDI benefits are generally considered taxable income by the Internal Revenue Service (IRS). Recipients receive a Form 1099-G from the EDD at the end of the tax year, reporting the total benefits received. This amount must be included in the individual’s gross income when filing federal tax returns.

In contrast, California SDI benefits are not subject to state income tax. The state specifically exempts these payments from taxation. Individuals do not need to report SDI benefits as income on their California state tax returns.

SDI benefits can be affected by other income received while disabled. If a person receives paid sick leave, vacation pay, or annual leave wages from their employer, these payments may reduce or eliminate SDI benefits for the same period. Additionally, if an individual receives Workers’ Compensation benefits for the same injury or illness, SDI benefits will typically be reduced dollar-for-dollar by the amount of Workers’ Compensation received.

Distinguishing California SDI from Other Disability Programs

California’s SDI program is distinct from other disability programs. Federal Social Security Disability Insurance (SSDI) is a federal program providing benefits for long-term disabilities to individuals with a history of paying Social Security taxes. Unlike SDI, which is temporary and for non-work-related disabilities, SSDI is designed for permanent or long-term conditions that prevent substantial gainful activity. Its funding comes from Social Security contributions.

Supplemental Security Income (SSI) is another federal program, administered by the Social Security Administration. It is a needs-based program for aged, blind, and disabled individuals with limited income and resources. SSI is not contingent on prior work history or contributions, unlike SDI. Its purpose is to provide a minimum income floor for those who qualify.

California Workers’ Compensation is a state-mandated insurance program providing medical care and wage replacement benefits to employees injured or ill as a direct result of their job. This program is specifically for work-related disabilities, whereas SDI covers non-work-related disabilities. Workers’ Compensation is typically funded by employers through insurance premiums, while SDI is funded through employee payroll deductions.