2026 Social Security Disability Benefits Pay Chart
Social Security disability benefits are an important resource for people in the United States who can no longer earn a living due to an injury or medical condition. There’s a lot to know about disability, from how you qualify to when you can expect payment to how much you’ll receive in benefits.
Here are three charts to help you understand what to expect.
Social Security Disability Benefits Pay Chart
In the “old days,” Social Security disability benefits were paid on the 3rd of the month, unless that date fell on a weekend or holiday. However, nearly 30 years ago, the Social Security Administration (SSA) broke up the payment schedule. Now, most recipients’ payment dates depend on when they were born–not how old they are, but the day of the month they were born.
Here’s how it breaks out:
If you…..
Your benefits are paid on…
Started receiving benefits before 1997, regardless of your birth date
The 3rd day of the month following the benefit month
Were born on the 1st through the 10th of the month and started receiving benefits after 1997
The 2nd Wednesday of the month following the benefit month
Were born on the 11th through the 20th of the month and started receiving benefits after 1997
The third Wednesday of the month following the benefit month
Were born on the 21st through the 31st of the month and started receiving benefits after 1997
The fourth Wednesday of the month following the benefit month
If the scheduled pay date lands on a weekend or holiday, benefits will be paid on the last business day before the scheduled date. This arises more often for SSI recipients and disability recipients on the old payment schedule, since the Wednesday schedule avoids weekends and several federal holidays.
Benefits normally payable on the 1st of February will be paid on January 30
Benefits normally payable on the 1st of March will be paid on February 27
For old-schedule SSD recipients:
Benefits normally payable on January 3 will be paid on January 2
Benefits normally payable on July 3 will be paid on July 2
Benefits normally payable on October 3 will be paid on October 2
Average Social Security Disability Benefits Pay
The amount you receive in monthly Social Security disability benefits will depend on your work history. Your benefit is calculated using the 10 highest-earning years of your working life, so if you had higher earnings during your career–even if it wasn’t stable across all of your working years–your benefits will be higher.
As of November 2025, the average monthly disability benefits paid to a disabled worker under the SSD program was $1,588.52/month. That’s an increase of about $7 compared with May of 2025. That number typically increases slightly over time, as the average monthly benefit for new recipients is typically higher than the average of all recipients. For example, the average benefit for disability recipients newly awarded benefits during December of 2025 was $1,811.02/month.
While the average from state to state varies by only a few hundred dollars, the range of actual disability benefits can be much larger. The amount of your Social Security disability benefits will be the same as the amount you would have received in retirement benefits if you’d reached full retirement age. In 2026, the cap for that monthly SSD benefit is $4,152.00/month.
How Long Does It Take to Get Social Security Disability?
The time it takes to receive Social Security disability benefits depends on whether your initial application is approved or you have to request reconsideration and possibly appeal. If you do have to appeal, it also depends in part on where you live.
The SSA says that, on average, it takes three to five months to get an initial determination. If that application is denied, you’ll have 60 days to submit a request for reconsideration. Processing time for the request for reconsideration is similar to the initial application timeline. If you are denied again on reconsideration, the next step is to request a hearing before an administrative law judge (ALJ).
The SSA says the average wait time for a hearing is 8-10 months, but that time varies based on location. We don’t yet have data for 2026, but as we enter the year wait times are trending downward. As of December of 2025, the national average wait time for an SSD hearing before an ALJ was 263 days (about 8 months and 3 weeks). That’s down from 288 days in June of 2025 and 293 days the previous December.
The gap in wait time has shrunk somewhat compared with recent years. Here are the locations with the shortest and longest average wait times based on the most recent data available.
Centers with Average Wait Times of 6 Months
Centers with Average Wait Times of 12 Months
Birmingham
Lawrence, MA
Charleston, WV
Santa Barbara
Columbia, MO
Springfield, MA
Evansville
Fort Wayne
Grand Rapids
Houston North
Jackson, MS
Lexington
Kingsport
Louisville
Macon
Mcalester
Memphis
The wait times listed above represent the time it takes to get to a hearing. After an ALJ hearing, you can typically expect to wait a few to several additional months for a decision.
Give Yourself the Best Chance Possible at Approval
If your claim is initially denied and you follow each step within the allowed time, you may still be awarded Social Security disability benefits. And, in most cases, you’ll receive benefits dating back to the filing of your initial application–in some cases, a bit further back. But, waiting months or even years to start receiving benefits can be tough.
Most disability applications are initially denied, and there are no guarantees. But having the right advocate at your side can increase your chances of approval by ensuring that you avoid common pitfalls and provide the strongest evidence possible. To learn more about how Disability Help Group can assist, call 800-800-3332 or fill out our contact form here.
FAQs:
Social Security Disability benefit amounts are not the same for everyone. Payments are based on your work history, earnings, and when your disability began. The 2026 Social Security Disability benefits pay chart below provides a general look at how monthly SSDI payments may vary, helping you better understand what to expect while your claim is being reviewed.
1. How should you read a Social Security Disability pay chart for 2026?
A Social Security Disability pay chart shows estimated monthly benefit amounts based on a person’s past earnings and work history. The 2026 chart helps applicants understand how income levels can affect SSDI payments, but actual benefit amounts are determined individually by the Social Security Administration.
2. Does everyone receive the same SSDI amount shown in the 2026 pay chart?
No. SSDI benefits are not a flat rate. The amounts shown in a 2026 Social Security Disability pay chart represent examples or ranges, not guaranteed payments. Your final monthly benefit depends on how much you earned and paid into Social Security over your working years.
3. Can your SSDI payment be different from the chart amount in 2026?
Yes. Many factors can cause your actual SSDI payment to differ from chart estimates, including your disability onset date, prior earnings, and any applicable cost-of-living adjustments. The chart is a helpful reference, but it does not replace an official benefits determination from Social Security.
How Much Are Social Security Disability Benefits and When Can You Expect Them?
Social Security disability benefits (SSD) provide an important safety net for workers who become disabled before reaching retirement age. But many people considering applying for SSD are unclear on how their benefits will be calculated or how much income they can expect.
Calculating Social Security Disability Benefits: The Short Version
If you qualify for Social Security Disability benefits (SSD), the monthly benefits you receive will be equal to the amount you would receive if you had reached full retirement age. Of course, that amount varies from person to person. That’s because Social Security retirement benefits (and so, SSD benefits) are based on your earnings during your career.
Higher earners get higher benefits, up to a limit. In 2026, the maximum monthly SSD benefit is $4,152.00. However, few recipients get that much. As of November of 2025, the average disabled worker received $1,588.52/month in SSD benefits.
Calculating Social Security Disability Benefits: The Details
AIME
The formula for determining your Social Security disability benefits or retirement benefits is complicated. The Social Security Administration (SSA) begins by calculating your Average Indexed Monthly Earnings (AIME). The SSA will look at up to 35 years of earnings and determine which were your highest-earning years.
Then, they’ll add up your earnings across those years and calculate a monthly average. That number (rounded to the next lowest dollar) is your AIME.
PIA
The next step–and the most complicated one–is to determine your Primary Insurance Amount (PIA). The PIA formula relies on “bend points,” which are dollar amounts that change every year. In 2026, the formula is:
AIME up to $1,286 (.90)
+
AIME between $1,287 and $7,749 (.32)
+
AIME over $7,749 (.15)
______________________
PIA
Here’s an example of how that calculation could work in 2026. Remember that the fixed numbers in the formula ($1,286 and $7,749) will change slightly from year to year.
Sample AIME Calculation
Assume the SSD applicant’s AIME is $2,000/month. Here’s how the calculation would work.
First $1,286 (.90) = $1,157.40
Remaining $714 (.32) = $228.48
$1,157.40 + $228.48 = $1,385.88
PIA is always rounded to the next lowest dime, so your PIA in this example would be $1,385.80.
PIA and Your Social Security Disability Benefits
Your PIA is the amount of monthly benefits you would receive if you retired at full retirement age. Your retirement benefits could be lower if you retire earlier, and higher if you hold off until age 70.
Social Security disability benefits are based on the amount you would receive if you reached full retirement age. So, if you are approved for SSD, your monthly benefit will match your PIA.
You can find your current PIA by logging in to your account at SSA.gov (or creating an account if you don’t have one). Remember, though, that your estimated benefit will continue to change across your career, as new work history is added to your record. The calculation also changes slightly from year to year as those bend points are adjusted.
Does Working Affect Social Security Disability Benefits?
Social Security doesn’t have a benefits program for partial disability. You can qualify for Social Security Disability benefits only if the SSA determines that you are unable to engage in substantial gainful activity (SGA). One way they make that determination is to look at your current earnings. If you’re above the SGA cut-off, you aren’t considered disabled. If your earnings are below that threshold, the SSA goes on to the next step in the analysis.
Like benefit amounts and bend points, the SGA cut-off is adjusted annually. In 2026, the cut-offs are $1,690 for most applicants and $2,830 for blind applicants.
Trial Work Periods
After you’re approved for SSD, the impact of earnings on your benefits becomes more complicated. The SSA offers SSD recipients the opportunity to test out returning to work without immediately losing benefits. But any month in which benefits exceed a certain cut-off counts toward a trial work period. That cut-off also changes from year to year. In 2026, it is $1,210.
That means any month in which an SSD recipient earns more than $1,210 will count toward the trial work period. If they exceed that threshold nine times in any 60 month period, the SSA will consider the trial work period successful and begin transitioning the recipient off of disability.
The 60-month period is rolling, which can make it hard for SSD recipients to track, particularly since such a small fraction of the 60-month period is required to push the recipient into the transitional period. 60 months is five years, meaning that a disabled worker who earned $1 above the threshold approximately once every 6 months could be deemed able to be self-supporting–even though they never once reached the level the SSA considers substantial gainful activity.
When Do SSD Payments Start?
There is a 5-month waiting period for SSD benefits. So, if you apply immediately after you become disabled, your benefits won’t start until the sixth month, even if you are approved earlier. If you didn’t apply right away, your benefits may officially start on the date of your application, or in some cases up to 12 months earlier. However, you’ll still have to wait for your application to work its way through the process, including any necessary appeals.
That means you may start receiving benefits as soon as a few months after you apply, or it may take two years or more to receive your first payment. The good news is that you’ll get benefits back to the appropriate start date once you’re approved.
Get the Help You Need with SSD
These formulas and cut-offs and pitfalls for keeping your benefits illustrate just how complex the SSD system can be. And this is just one aspect of the program. If you’re applying for SSD or have been denied disability benefits and want to appeal, an experienced disability benefits advocate can be your best resource.
Call Disability Help Group today at 800-800-3332 or fill out our contact form HERE to learn more about how we can help.
FAQs: How Much Are Social Security Disability Benefits and When Can You Expect Them?
1. How much does Social Security Disability pay per month in 2026?
The amount you can receive from Social Security Disability Insurance (SSDI) depends on your work history and lifetime earnings, not your medical condition. In 2026, monthly SSDI payments typically range from a few hundred dollars to the maximum federal benefit set by the Social Security Administration, with most recipients falling near the average monthly benefit.
2. How long does it take to start receiving SSDI benefits after applying?
SSDI benefits are not paid immediately. Most applicants wait several months for an initial decision, and many claims are denied at first. If approved, benefits usually begin after a five-month waiting period from the established disability onset date, which can affect when your first payment arrives.
3. Do you receive back pay for Social Security Disability benefits?
Yes. If your SSDI claim is approved, you may be eligible for back pay, which covers the months between your disability onset date and the date your benefits begin. The amount of back pay depends on how long your application took and when Social Security determines your disability started.
What is the SSDI Payment Schedule? (UPDATED FOR 2026)
Until 1997, Social Security benefits were paid on the 3rd of each month. That was true whether you were receiving retirement benefits or Social Security disability benefits (SSDI). Now, the date that your disability pay arrives depends on the type of benefit you receive and your birth date.
The Social Security Administration (SSA) processes payments for several different programs. A disabled person may receive SSDI, Supplemental Security Income (SSI) or both. SSDI benefits are based on your work history, just like your Social Security retirement benefits. SSI is a needs-based program that is administered by the SSA but is funded separately.
2026 Update: In 2026, SSDI and SSI recipients will also see a 2.8% Cost-of-Living Adjustment (COLA). This increase helps benefits keep pace with inflation, raising the average SSDI monthly payment by approximately $56, bringing it to around $2,071 per month for the typical recipient.
Here’s what you can expect if you are receiving SSDI, SSI or both.
SSDI Disability Payment Schedule
If you started receiving SSDI benefits after 1997, your birthday will determine the date you receive your payment. Under the current Social Security disability payment schedule, f your birthday falls between:
1st-10th of a month, SSDI checks or direct deposit will arrive on the second Wednesday of every month.
11th-20th of a month, SSDI checks or direct deposit will arrive on the third Wednesday of every month.
21st-31st of a month, SSDI checks or direct deposit will arrive on the fourth Wednesday of every month.
If you received benefits before 1997, your SSDI payment date will be on the third day of the month.
2026 Update: The above schedule remains correct. Below is a graph showing the 2026 SSDI payment dates by birth date.
Birth Date
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1–10
14
11
11
8
13
10
8
12
9
14
10
9
11–20
21
18
18
15
20
17
15
19
16
21
18
16
21–31
28
25
25
22
27
24
22
26
23
28
25
23
SSI Payment Schedule
While SSDI payment dates are spread throughout the month based on your birth date, all SSI payments are made on the first day of the month. If the first falls on a weekend or federal holiday, your SSI payment is issued on the last business day before the holiday.
2026 Update: Recipients may occasionally receive two payments in one month due to weekends/holidays, similar to previous years. For example, if the 1st falls on a Saturday, and the next payment is scheduled for the 3rd (for pre-1997 SSDI), adjustments may occur.
How Does the SSA Treat Weekends and Holidays?
Since most SSDI payment dates fall on Wednesdays, that payment schedule is generally not disrupted by federal holidays, and those dates obviously never fall on Saturday or Sunday. That’s not true for SSI payments, which are scheduled for the first of the month, nor for those SSDI payments that are made on the third day of the month.
When the first or third day of the month falls on a Saturday, Sunday, or holiday, those payments are made on the last regular business day before the scheduled payment date.
2026 Example: SSI recipients may receive one payment on August 1st and another on August 29th, because the 30th and 31st fall on a weekend, and September 1st is Labor Day
SSDI and SSI Combined Payments Schedule
If you receive SSDI and SSI payments together, you will receive your SSI payment on the first day of the month and your SSDI payment on the third of the month.
2026 Update: The combined schedule remains the same. Adjustments for holidays/weekends are automatic.
How Long Does it Take to Receive SSDI Payments?
How long it takes to receive your monthly benefits and back pay after you’ve been approved for SSDI benefits varies. Most recipients start getting benefits one to two months after approval, and back pay usually arrives during that same time frame. But, the SSA says it may take three to five months to receive back pay, and some claimants report receiving it within just a few weeks.
If you apply for SSDI immediately upon becoming disabled and your claim is approved quickly, you may have to wait a little longer. That’s because there is a five month waiting period between onset of your disability and the time you become eligible for benefits. So, for example, if you become disabled in January and are approved for benefits in April, you’ll have to wait a few months for your benefits to kick in.
You won’t have to guess at this, though. Your SSDI award letter will include a “date of entitlement,” which is the first month you will be eligible to receive benefits. If you don’t start receiving benefits on schedule, you should contact the SSA for help.
How to Receive Your SSDI and SSI Payments
Social Security offers several ways to send your SSDI or SSI payments.
For example:
Direct Deposit is probably the safest way to receive your disability payments since they cannot be lost or stolen if deposited directly into your bank account.
The Direct Express Card program, which credits money directly to a swipe-able card.
Paper Checks: Still available for SSDI, but less secure. SSI must be received electronically.
Tax on Social Security Benefits
You may have to pay taxes on SSDI depending on your income level. In 2026, SSDI income, like Social Security retirement income, is taxable only if the total of your other income plus 50% of your Social Security income exceeds:
$25,000 if your tax filing status is single, head of household, qualifying surviving spouse, or married filing separately and have lived apart from your spouse for the full year
$32,000 for married couples filing jointly
$0 for married couples filing separately who lived together at any point during the tax year
SSI income is not taxable.
Social Security doesn’t automatically withhold taxes, but does offer voluntary tax withholding from your benefit. You can choose this option by completing Form W-4V. There are specific percentages to choose from. You can obtain the form from Social Security, request it from the IRS, or ask your representative for a copy.
Generally, you would receive a refund when filing taxes the following year if you opted to voluntarily have taxes withheld and you overpaid.
2026 Update: Tax rules remain consistent, thresholds generally adjust for inflation each year, so always check with the IRS for annual updates.
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Make sure you start your claim the right way and apply for all the benefits you deserve. Contact us here to receive a FREE consultation.
Payment depends on your birth date if you started receiving benefits after 1997:
1st–10th → 2nd Wednesday of the month
11th–20th → 3rd Wednesday of the month
21st–31st → 4th Wednesday of the month If you started receiving benefits before 1997, your payment is on the 3rd of the month.
What is the 2026 SSDI Cost-of-Living Adjustment (COLA)?
SSDI and SSI benefits increase by 2.8% in 2026. This ensures your benefits keep pace with inflation. The average Social Security check in 2026 is expected to be around $2,071 per month
How are payments affected by holidays or weekends?
If a scheduled payment date falls on a Saturday, Sunday, or federal holiday, SSA issues the payment on the last business day before the holiday. This may result in two payments in one month or a slight delay in the following month.
Can I receive both SSI and SSDI at the same time?
Yes. SSI is paid on the first of the month, and SSDI is paid according to your birth date (or the 3rd of the month if you started before 1997). Payments are separate but coordinated by SSA.
How can I make sure I receive my payments safely?
The safest methods are:
Direct Deposit: money goes directly into your bank account
Direct Express Card: a prepaid, swipeable card Paper checks are still available for SSDI, but are less secure, and SSI must be received electronically.
What Happens After an SSD Hearing Denial? Understanding the Social Security Disability Appeals Process
Post-Hearing Review in Social Security Disability Claims
Did you know there is a post-hearing process wherein you can ask for further review of your claim even if you are turned down by an Administrative Law Judge? This process is referred to as the Appeals Process, whereby an independent tribunal can review your decision and, if appropriate, order a new hearing be held in your case and/or possibly grant you benefits without the need for a new hearing.
One of the biggest advantages of filing an appeal is the ability to have your claim reviewed by someone other than the judge who initially turned you down; however, the Appeals Process is a very technical area of SSD law, often involving strict deadlines so it is extremely important that you have legal representation when attempting to navigate the Appeals Process.
All decisions from an Administrative Law Judge must first be appealed to the SSA Appeals Council, and if your appeal is denied, there is one final level of review known as Federal Review, which is a direct appeal to a U. S. Federal District Court. Herein below, we will explore the standard of review used in the appeals process and the possible outcomes resulting from an appeal.
The Social Security Disability Appeals Process Explained
Appeals Council Review
If an Administrative Law Judge turns you down after your hearing, you may ask for review of the decision by filing a Request for Review with the Appeals Council, an independent council established by the SSA to review decisions made by agency Administrative Law Judges. The Request for Review must be filed within 60 (sixty) days of receiving your Notice of Decision, and you must file it directly with the Appeals Council.
The Appeals Council will review the entire record and make a determination as to whether the decision was supported by substantial evidence; more specifically, the Appeals Council will evaluate whether the ALJ properly considered the medical evidence in your case and/or properly applied the law to your case.
At the conclusion of their review, the Appeals Council will take one of the following actions: affirm (uphold) the judge’s decision; reverse the decision and grant you benefits; or send your case back to the Administrative Judge for a new hearing. If the latter takes place, you will most likely be rescheduled for a new hearing, and you will be able to introduce new evidence to support your case; your Attorney will also be able to attend the new hearing and advocate on your behalf. Once your new hearing is held, the Administrative Law Judge will then issue a new decision in your case.
Federal Court Review of SSD Appeals
If the Appeals Council affirms or upholds the Administrative Law Judge’s denial, all is not lost; there is another layer of review known as Federal Review, which involves filing a lawsuit in the U. S. District Federal Court. You must file your lawsuit within sixty (60) days of receiving the final decision of the Appeals Council, and you must file in the Federal Judicial District where you live.
In this process, it is a Federal judge (not SSA) who reviews the case and makes the final decision on whether the ALJ properly decided your case. The Federal Court will conduct a brand new review of your case and make a decision on whether the Administrative Law Judge’s decision was supported by substantial evidence; more specifically, they will assess whether the findings of the Administrative Law Judge were supported by the administrative record and/or whether the ALJ misapplied legal or procedural rules and if so, the Federal Court will overturn the Administrative Law Judge’s denial of your case and send your case back to SSA for a new hearing. In some instances, they may also grant benefits to you without the need for a new hearing.
Why the SSD Appeals Process Matters
All is not necessarily lost if an Administrative Law Judge denies your case. The post hearing Appeals Process affords you the opportunity to have your claim reviewed by an independent tribunal that may take one of three actions: uphold the denial, overturn your denial and order a new hearing be held in your case, or, in certain circumstances, grant you benefits outright without the need for another hearing.
The Appeals Process is an integral part of the SSD process because it serves to safeguard your right to have a full and fair hearing; however, as discussed above, the Appeals Process is a very technical process, and it is important to consult with an experienced Advocate who can explore your appellate options.
Here at Disability Help Group, we are committed to doing everything that we can to win the case for our clients without the need for an appeal. However, if the need to appeal arises, we stand ready to pursue your initial appeal with the Appeals Council, and because we want to give our clients the best overall chance to win their case, we have additionally partnered with specialist attorneys who devote the entirety of their law practice to filing appeals in the U. S. Federal District Court. No case is too complicated for Disability Help Group, and we are committed to seeing your claim through to a successful outcome.
Get Help With Your Social Security Disability Appeal
Being denied after a Social Security Disability hearing can feel overwhelming, but it does not have to be the end of your claim. Strict deadlines, complex legal standards, and procedural requirements make the appeals process difficult to navigate alone.
Disability Help Group helps individuals nationwide pursue SSD appeals, including Appeals Council reviews and Federal Court appeals. Our team understands how to identify legal errors, missing evidence, and procedural issues that may strengthen your case. Contact us HERE today or call us at 800-800-3332.
This article was written by Erica Chitwood, Esq., and Wilbur Seitzinger Jr., Esq., and fact-checked by Disability Help Group to ensure accuracy and consistency with current Social Security Administration appeals procedures. This content is intended for general informational purposes only and should not be considered legal advice. Every Social Security Disability case is unique, and readers are encouraged to seek guidance from a qualified disability advocate or attorney regarding their specific situation.
Frequently Asked Questions About SSD Appeals
How long do I have to appeal an SSD hearing denial?
You generally have 60 days from the date you receive your Notice of Decision to file a Request for Review with the SSA Appeals Council. Missing this deadline can permanently end your appeal rights.
Can the Appeals Council approve my SSD claim without another hearing?
Yes. The Appeals Council can reverse the ALJ’s decision and grant benefits outright if they determine the evidence supports approval. In other cases, they may send your claim back for a new hearing.
What happens if the Appeals Council denies my appeal?
If the Appeals Council denies review or upholds the ALJ’s decision, you may file a lawsuit in U.S. Federal District Court within 60 days. A Federal judge will then review whether the denial was legally and procedurally correct.
How Workers’ Compensation and Long Term Disability Benefits Affect Social Security Disability Benefits
Workers’ Compensation Benefits and How They Impact Social Security Disability Benefits
After the turmoil of the Great Depression, States concluded that they needed to create a safety net for workers who were injured on the job. As a result, all States in our Nation have passed their own version of a Workers’ Compensation Act. The Acts provided for wage loss benefits and medical benefits related to the work-related injury. The wage loss benefits would be paid at a maximum of 2/3 of the injured workers’ average weekly wage. However, these wage loss benefits were not taxed, so the injured worker could receive close to what they made before their injury. For example, an injured worker in Pennsylvania (individual A) whose average weekly wage before their injury was $1,000 per week. They would, therefore, receive $666.66 per week.
The Origin of Social Security Disability Benefits and the Workers’ Compensation Offset
The Federal Government also recognized during the Great Depression that they needed to provide a safety net to allow people to retire and to protect people who are disabled. Franklin D. Roosevelt, as part of his New Deal to the nation signed the Social Security Act, which was later amended to include Social Security Disability Benefits. However, the Social Security Administration realized that there were individuals who were receiving Workers’ Compensation Benefits and Social Security Disability Benefits at the same time and were actually making more money than they had when they were working. The Social Security Administration considered this phenomenon to be “double dipping.” Consequently, the Social Security Administration created a regulation regarding the impact that Workers’ Compensation Benefits have on a Social Security Disability Claim.
The 80 Percent Rule for Workers’ Compensation and Social Security Disability
The Social Security Administration determined that an individual who is receiving Workers’ Compensation Benefits and Social Security Disability Benefits could receive up to 80% of their monthly earnings prior to the individual’s work-related injury. To illustrate this point, I will refer to Individual “A” above, who made $1000 a week. His monthly wages would be $4,333.33. 80% of his monthly wages would be $3,466.66. We also know that he is receiving $666.66 a week in Workers’ Compensation Benefits, which equals a monthly benefit of $2,888.86. His Social Security Disability Benefit, before considering the impact of Workers’ Compensation, would be $2000 per month. However, the individual can only receive 80% of their pre-work related monthly wages, which was $3,466.66. Worker’s Compensation benefits reduce that $3,466.66 to $577.80. As a result, the individual would only receive $577.80 in Social Security Disability and not the $2000 per month that he would have received if there was not a Workers’ Compensation Offset.
Settling a Workers’ Compensation Claim and Its Impact on SSD Benefits
However, Workers’ Compensation Benefits were not meant to last forever. The Workers’ Compensation Insurance Company, responsible for paying your benefits, will continually try to reduce, suspend, or terminate your Workers’ Compensation Benefits. You do have the option of settling your Worker’s Compensation Claim for a lump sum payment. The decision to settle your Workers’ Compensation Claim is something you must decide with your attorney, but if you are close to receiving Social Security Disability Benefits, then it may be advantageous to settle your compensation claim. The reason is that the Social Security Administration allows settlement to be prorated over your life expectancy.
You will receive the lump sum; however, your attorney should determine what your life expectancy is, determine how many months you have remaining until your life expectancy and divide your settlement by the remaining months you have. The Social Security Administration will use that figure to determine an offset.
Example of a Workers’ Compensation Settlement and SSD Offset Calculation
For example, Individual A is 55 years old. His life expectancy is 83 years. We, then, consider how many months Individual A is likely to live. We subtract his current age from 83, which gives us 28 years. 28 years is 336 months. Individual A settled his Worker’s Compensation claim for a lump sum payment of $150,000.
To determine how the $150,000 settlement will offset Individual A’s Social Security Benefits, the Social Security Administration will take the $150,000 and divide it by the remaining months of Individual A’s life (336 month). Therefore, the Workers’ Compensation offset would be $446.42.
Remember, his combined Social Security Disability and Workers’ Compensation benefits cannot exceed 80% of his highest monthly earnings, which we know is $3,466.66. Individual A would not only receive $150,000 from his settlement, but he will also receive his full Social Security Disability Benefit because his benefit of $2000 plus the prorated settlement amount of $446.42 ($2,446.42) is less than $3,466.66. Individual A just made a great deal. He received a massive settlement of his Workers’ Compensation claim AND is now receiving his full Social Security Disability Benefit.
Long Term Disability Benefits and Their Interaction With Social Security Disability Benefits
Many employers offer their Employees, as part of their Employee Benefit Package, Long Term Disability Benefits. These benefits are relatively inexpensive and compensate you at 60% of your monthly wages if you are unable to perform the material and substantial duties of your regular occupation. There are also Long Term Disability Benefits that you can purchase directly from an Insurance Company. These private Long Term Disability Benefits are more expensive, but you have a lot more legal remedies if the insurance company denies your case than you would if you received the benefits as part of your Employee Benefit Package.
The reason for this difference is that the law governing Employee Benefits, known as ERISA, gives way too much deference to the Insurance Company. Whereas, a private disability plan is a simple breach of contract claim, and you may assert a Claim for Bad Faith benefits if the Insurance Company acted in a self-serving, bad-faith fashion. This bad-faith claim could result in the award of punitive damages. Consequently, I recommend obtaining disability insurance benefits on your own and not through your employer if you can afford the premiums.
How Long Term Disability Benefits Are Reduced by Social Security Disability
Long Term Disability Benefits could provide you with an income while you are awaiting a decision on your Social Security Disability Claim. However, all Long Term Disability Plans have a provision that Social Security Disability Benefits will then reduce what the Long Term Disability Insurance Company has to pay and what they already paid you. This contractual provision results in an overpayment scenario with the Insurance Company when you are ultimately awarded Social Security Disability Benefits.
Example of Long Term Disability Overpayment After SSD Approval
For example, Individual A stopped working on January 1, 2024. Long Term Disability does not pay for the first 6 months (that is what Short Term Disability Benefits are for), so Individual A started receiving Long Term Disability Benefits on July 1, 2024. He was denied twice by Social Security and finally had a hearing on August 1, 2025. Individual A wins his case and is awarded benefits back to his onset date of disability (January 1, 2024).
Individual A is required to provide the favorable decision and Notice of Award (payment documents received after you win) to the insurance company. They will then demand that Individual A repay them all the money they paid Individual A from July 1, 2024, through the date he finally receives his past due check. If you are receiving Long Term Disability Benefits and are ultimately successful in receiving Social Security Disability Benefits, I strongly advise you to put the past due check from Social Security aside because you are required to repay this money to the insurance company. Some insurance companies have threatened to report people to the IRS who try to keep their past due checks, so be very careful.
Get Help Navigating Workers’ Compensation, Long Term Disability, and SSDI
Understanding how Workers’ Compensation and Long Term Disability benefits affect Social Security Disability benefits can be complicated and costly if handled incorrectly. A mistake in timing, settlement structure, or reporting can reduce your monthly SSDI payments or create unexpected overpayments.
Disability Help Group helps people nationwide secure Social Security Disability benefits and avoid common pitfalls that can delay or reduce approval rates. If you are receiving Workers’ Compensation benefits, Long Term Disability benefits, or considering a settlement, getting guidance early can make a significant difference in your outcome. Our team is here to help guide you through your Social Security Disability benefits claim. Contact us HERE for a free case evaluation or call us today at 800-800-3332.
This article was written and fact-checked by Michael Parker, an advocate at Disability Help Group. It is based on current Social Security Administration rules and commonly applied Workers’ Compensation and Long Term Disability regulations.This content is for general informational purposes only. Every disability claim is unique, and readers should consult a qualified disability advocate or attorney for guidance specific to their situation.
Frequently Asked Questions About SSDI, Workers’ Compensation, and Long Term Disability
Can I receive Workers’ Compensation and Social Security Disability benefits at the same time?
Yes, you can receive both Workers’ Compensation and Social Security Disability benefits at the same time. However, the Social Security Administration limits your combined benefits to no more than 80% of your average monthly earnings before your work-related injury. If your combined benefits exceed this limit, your SSDI payment will be reduced due to a Workers’ Compensation offset.
Will settling my Workers’ Compensation claim reduce my Social Security Disability benefits?
Not necessarily. When a Workers’ Compensation claim is settled for a lump sum, the Social Security Administration may prorate the settlement over your life expectancy, which can significantly reduce or even eliminate the offset. How a settlement is structured is extremely important, which is why it’s critical to consult an attorney familiar with SSDI rules before finalizing any settlement.
Do I have to repay Long Term Disability benefits if I am approved for SSDI?
In most cases, yes. Nearly all Long Term Disability insurance policies require you to repay benefits once you are awarded Social Security Disability benefits. This often comes from your past-due SSDI payment. If you are receiving Long Term Disability benefits and later win SSDI, you should set aside your back pay to avoid serious financial and legal consequences.
