Our Services
Existing Claim Help
Resources
If you can’t work because of a serious injury or illness, this SSDI vs. workers compensation guide can help you understand which benefits you could qualify for and when both may apply.
This article explains how Social Security Disability Insurance (SSDI) and workers’ compensation coverage differ. It covers eligibility, benefits, offsets, and why a workers’ compensation settlement can change your monthly SSDI payment.
SSDI is a federal disability benefit that provides a partial wage replacement for people with a serious medical condition that prevents substantial work.
Workers’ compensation is employer-funded insurance that provides wage replacement and medical care for people with a work-related injury or illness. This table shows a quick breakdown of the two programs.
Check your SSDI eligibility in a few minutes.
No cost to start.
Talk with our team about your situation. We'll walk you through what comes next.
Get EvaluationSee what documents you need. We'll help you get everything in place.
Get EvaluationNot sure what that SSA letter means? We can review it with you.
Get EvaluationGet support from a team that handles the paperwork and follows through.
Get EvaluationYes, you can receive SSDI and workers compensation benefits at the same time if you qualify for both programs. If you get both benefits, an SSDI offset may reduce your monthly payment. That 80% limit is based on your average current earnings, or your average wages before the injury or illness.
If your combined SSDI (including family benefits) and workers’ compensation payment is more than 80% of your previous average wage, your SSDI payment will be reduced. This reduction is called an SSDI offset.
Example:
In this example, average current earnings are $4,000 per month, so the 80% limit is $3,200 a month.
Combined benefits are $1,000 over the limit so SSDI will be reduced to $1,200.
A lump-sum workers compensation settlement may create an offset that lowers monthly SSDI payments for months or years, depending on the settlement.
How the settlement is structured and worded affects how the SSA applies it. Attorney fees, court expenses, and medical bills can be deducted from the lump sum before the SSA counts it.
Since workers’ compensation affects SSDI payments, report monthly benefits and any workers compensation settlement when you are awarded them. If you wait to report workers’ comp benefits, an SSDI back pay offset or overpayment may leave you owing money later.
Also, tell the SSA if your workers’ comp payments change or stop so they can adjust offsets.
Keep payment records, award letters, Social Security notices, and workers’ comp settlement docuents in one place so it’s easy to answer questions.
Workers’ compensation affects other benefits in different ways. Here’s how benefit programs interact.
If you want to apply for SSDI or SSI or you applied and were denied, Advocate can help. Our disability specialists and clinical staff know how to build a strong disability claim and avoid common problems that cause delays and denials.
Check your SSDI eligibility in a few minutes.
No cost to start.
Talk with our team about your situation. We'll walk you through what comes next.
Get EvaluationSee what documents you need. We'll help you get everything in place.
Get EvaluationNot sure what that SSA letter means? We can review it with you.
Get EvaluationGet support from a team that handles the paperwork and follows through.
Get EvaluationYes, you can receive SSDI and workers’ compensation at the same time if you qualify for both. If the combined benefits go over Social Security’s limit, your SSDI will be reduced.
No, workers’ compensation doesn’t always reduce SSDI. A reduction applies only when the combined amount is more than 80% of your former average wages.
Possibly. Your settlement may be spread over time so those months could be offset.
Yes, workers’ compensation could create an SSDI back pay offset if you had both benefits in the same months and the benefits’ total was over 80% of your average wages before injury/illness.
Yes, a workers’ compensation attorney or qualified professional can help you review settlement terms before signing papers. Settlement terms affect how the SSA counts the lump-sum for an offset.
Let us prepare your application so you're not managing the paperwork alone.
Get EvaluationConnect with an Advocate specialist who's with you from day one.
Get EvaluationBegin your claim with a team that knows the SSA process inside and out.
Get Evaluation