California State Disability Insurance (SDI)

Quick Facts

• Benefit amount: 60%–70% of wages earned in the highest quarter of the base period, with a maximum weekly benefit of $1,620 for claims starting in 2025.
• Duration: Up to 52 weeks of benefits per claim year for most disabilities. Pregnancy-related claims typically cover 4 weeks before and 6–8 weeks after birth, with extensions for complications.
• Funding: Payroll deductions from California employees on the first $168,600 of wages in 2025. Self-employed workers can participate through Disability Insurance Elective Coverage (DIEC).
• Administration: Managed by the Employment Development Department (EDD) through the SDI Online portal or paper forms.

Program Overview

California’s State Disability Insurance program provides partial wage replacement when workers cannot perform their regular duties due to a non-work-related illness, injury, or pregnancy. Established in 1946, SDI offers one of the most comprehensive state disability insurance systems in the country. The program coordinates with Paid Family Leave (PFL), which covers caregiving and bonding needs. Employees who contribute to SDI through payroll taxes are automatically enrolled; they can file claims when a physician certifies disability.

SDI covers a broad range of conditions, including mental health disorders, surgery recovery, pregnancy, and chronic illnesses. Benefits are paid biweekly via debit card or direct deposit. Claimants must be under the continuous care and treatment of a licensed health professional and submit updates periodically.

Eligibility Requirements

1. Disability certification: You must be unable to perform your regular or customary work for at least eight consecutive days due to a non-work-related disability.
2. Base period earnings: Earned at least $300 in the base period, with SDI contributions taken from those wages. The base period is the 12 months ending approximately 5 months before the disability starts.
3. Medical care: Must be under the care and treatment of a licensed physician/practitioner during the first eight days of disability and remain under care.
4. Timely filing: Submit your claim no later than 49 days after becoming disabled. Late claims may be accepted with good cause but risk benefit reduction.

Benefit Calculation

• Weekly benefit amount (WBA): Determined by dividing the highest quarter earnings in the base period by 13 and applying the 60%–70% replacement rate. The minimum weekly benefit is $50.
• Duration: Benefits continue as long as the disability persists and you remain under medical care, up to 52 weeks.
• Offsets: Workers’ compensation benefits for the same injury reduce SDI. Employer-paid sick leave or vacation does not reduce benefits unless total pay exceeds regular wages.
• Taxes: SDI benefits are not taxable at the state level but may be taxable federally if combined with employer contributions. Most claimants do not owe federal tax unless their employer paid part of the premium (rare).

Application Process

1. Obtain claim form: File online via SDI Online or request paper form DE 2501. Hospitals and physicians often have forms available.
2. Complete Part A: Provide personal details, employment information, and the first day you stopped working.
3. Submit within 49 days: File online or mail the form in the pre-addressed envelope. Keep copies of all documents.
4. Physician certification: Your doctor completes Part B, certifying the disability, diagnosis, and estimated recovery date. They can submit online using SDI Online or mail the form.
5. Employer verification: EDD may contact your employer to confirm wages and last day worked.
6. Receive EDD debit card: Approved claimants receive payments on an EDD debit card (Bank of America). You can set up direct deposit.
7. Continue medical certifications: For extended disabilities, your physician must submit supplemental certifications (DE 2525XX) confirming continued disability.

Documentation Checklist

• Personal identification (driver’s license or state ID) for SDI Online account.
• Medical records supporting diagnosis and treatment plan.
• Employment history for base period employers.
• For pregnancy claims, estimated due date, delivery date, and any complications.
• Additional forms if you are receiving unemployment, workers’ compensation, or employer-provided disability benefits.

Interaction with Other Benefits

• Paid Family Leave: After SDI for pregnancy ends, you can file for PFL bonding benefits. SDI and PFL share wage data, so transition is seamless.
• Workers’ compensation: SDI supplements workers’ compensation only if the work-related claim is disputed or denied. Once workers’ compensation temporary disability begins, SDI stops.
• Unemployment insurance: You cannot receive unemployment while claiming SDI because you are not able and available to work.
• Social Security Disability Insurance: SDI is short-term; you may pursue SSDI for long-term disabilities. SDI payments may overlap while SSDI is pending.

Maximizing Your Benefit

1. File promptly: Submit within 49 days to avoid losing weeks of benefits. File online for faster processing.
2. Ensure accurate base wages: Review pay stubs for SDI deductions. If contributions were missed, contact EDD promptly with proof.
3. Coordinate employer benefits: Discuss how SDI interacts with sick leave or PTO. You can supplement SDI to reach 100% wages without reducing state benefits.
4. Maintain medical documentation: Keep regular appointments. Missed visits can cause benefits to stop.
5. Plan for waiting period: There is a seven-day non-payable waiting period for most claims. Use PTO or savings to cover this gap. For COVID-19 and certain conditions, the waiting period may be waived.

Common Mistakes to Avoid

• Late medical certification: Delays in physician submission can stall payments. Follow up to ensure forms are sent.
• Incomplete information: Provide detailed job duties so the physician can explain why you cannot perform them.
• Working while claiming full benefit: Report any wages earned during disability; EDD may reduce benefits accordingly.
• Ignoring EDD requests: Respond quickly to additional documentation requests to prevent suspension.

Appeals Process

If denied, you can appeal within 20 days of the notice. Submit a written appeal explaining why the decision is incorrect and include supporting evidence. Hearings are conducted by an administrative law judge. Further appeals can be filed with the California Unemployment Insurance Appeals Board and state courts.

Example Scenarios

• Surgery recovery: Alex underwent knee surgery and was unable to stand for prolonged periods. His orthopedist certified disability for 12 weeks. SDI replaced 60% of his wages, and he used accrued PTO to cover the waiting week.
• Pregnancy: Priya’s doctor certified disability four weeks before delivery and eight weeks after due to a cesarean section. She then transitioned to PFL for bonding.
• Mental health: Dana’s psychiatrist certified disability for severe depression and anxiety. With weekly therapy and medication management, she received SDI for 10 weeks until cleared to return to work gradually.

Resources

• California Disability Insurance Overview
• SDI Online
• Disability Insurance claim forms
• EDD customer service or call 800-480-3287
• California Paid Family Leave information

Advanced Tips

• Self-employed coverage: Enroll in DIEC to access SDI. Contributions are based on net profit, and you must remain enrolled for at least two years.
• Recurrent disabilities: If the same condition recurs within 60 days, you may not need to serve a new waiting period.
• Partial return to work: You can work part-time while receiving reduced benefits. Report hours to avoid overpayments.
• Tax preparation: Keep Form 1099G for federal taxes if applicable. Most claimants do not pay tax, but consult a tax advisor if you have employer-paid disability coverage.