In October 2023, the typical incapacity pay from Social Safety was $1,665.14 monthly. Social Safety Incapacity Insurance coverage (SSDI) advantages are largely based mostly on how a lot Social Safety tax you paid on earlier earnings. The utmost month-to-month SSDI profit is $3,627 in 2023 and $3,822 in 2024.
Common month-to-month incapacity pay by state
As a result of price of dwelling varies by location and a beneficiary’s SSDI cost is set by their lifetime earnings (amongst different issues), the typical SSDI month-to-month profit varies by state. In 2022, Delaware had the best common month-to-month SSDI cost at $1,599.97, and the District of Columbia had the bottom at $1,321.04.
Faucet to see a desk of common month-to-month incapacity pay by state
How incapacity pay is calculated
The SSA calculates SSDI utilizing a lot of the identical method it makes use of to calculate retirement advantages, together with measuring your common earnings from jobs at which you paid Social Safety tax in your wages. The system excludes earnings on which you didn’t pay Social Safety tax.
The scale of SSDI advantages doesn’t rely on the severity of your incapacity, so ready till your incapacity worsens to use for SSDI doesn’t enhance your month-to-month profit.
As soon as the Social Safety Administration adjusts your previous earnings for inflation and calculates the typical of your 35 highest-earning years, it applies “bend level” percentages to sure parts of your common earnings. Every whole for every bend level is added collectively to calculate your major insurance coverage quantity (PIA).
The bend factors for 2023 are:
32% of any quantity between $1,115 and $6,721.
15% of any quantity above $6,721.
The bend factors for 2024 are:
32% of any quantity between $1,174 and $7,078.
15% of any quantity above $7,078.
Your PIA is the quantity you’ll obtain every month if you happen to qualify for SSDI advantages. The PIA system is designed to assist funds to people with decrease earnings over their lifetime.
Instance of a incapacity pay calculation
Working whereas receiving incapacity pay
Sure, you’ll be able to work whereas accumulating SSDI advantages, however there’s a restrict to how a lot you’ll be able to earn monthly earlier than the Social Safety Administration reduces your incapacity pay. The substantial gainful exercise restrict for 2023 is $1,470 monthly ($2,460 if you happen to’re blind). In 2024, the restrict is $1,550 monthly ($2,590 if blind).When you earn greater than the restrict, you’ll not qualify for SSDI advantages.
The SSA has work incentive packages to assist SSDI beneficiaries take a look at the waters with part-time work earlier than returning full time. Collectively these packages are known as the Ticket to Work program. Every kind of program affords totally different advantages and has totally different necessities.
When you resolve to work whereas receiving SSDI advantages, contact the SSA to allow them to know that you just’re working and study what info you’ll have to report every month.
Do you know…
The SSA applies its annual cost-of-living adjustment to incapacity pay routinely. This helps maintain advantages on tempo with inflation.
Different earnings that may decrease your incapacity pay
The SSA may decrease your month-to-month incapacity cost if you happen to obtain staff’ compensation for a job-related incapacity or public incapacity advantages for disabilities unrelated to your job, similar to state-based incapacity.
Nevertheless, these advantages don’t lower your SSDI advantages:
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Making use of for SSDI advantages
You possibly can apply for SSDI online, by telephone or in individual at your local SSA office. To use over the telephone, name 1-800-772-1213 or TTY 1-800-325-0778 if you’re exhausting of listening to or deaf.
To use you’ll submit an software and a medical launch kind together with data of your prognosis, details about your work historical past and proof of sure info similar to id and citizenship.