Understanding the Two Programs

Workers’ Compensation is a state-level program that provides benefits if you’re injured or become ill due to your job. It may cover:

• Medical bills
• Lost wages
• Disability compensation
• Rehabilitation

SSDI, on the other hand, is a federal program that provides income support if you have a long-term disability that prevents you from working, regardless of how the disability occurred.

Can You Qualify for Both?

Yes, you can qualify for both if:

• You were injured on the job and are receiving workers’ comp benefits
• Your medical condition meets the SSA’s definition of disability
• You are not engaging in substantial gainful activity (SGA)

Many people apply for SSDI after receiving workers’ comp if their condition becomes long-term or permanent.

How the Offset Rule Works

If you qualify for both benefits, the SSA may reduce your SSDI payments through what’s called a workers’ compensation offset. Here’s how it works:

• The combined total of your SSDI and workers’ comp benefits cannot exceed 80% of your average current earnings before you became disabled.
• If it does, SSA will reduce your SSDI benefit so that the combined amount stays within that limit.
• The offset continues until you either stop receiving workers’ comp or reach retirement age (at which point SSDI becomes Social Security retirement benefits).

Example Scenario

Suppose your average pre-disability income was $4,000/month.

• 80% of that is $3,200.
• If you receive $2,200/month in workers’ comp and $1,500 in SSDI, that totals $3,700—$500 over the limit.
• SSA would reduce your SSDI benefit by $500 to bring you within the cap.