Amazon's long-term disability replaces 60% of your base salary, up to a monthly maximum that varies by location

Amazon's long-term disability (LTD) plan pays 60% of your base monthly salary if you become unable to work due to illness or injury. The payment continues until you reach age 65, recover and return to work, or exhaust your benefit period — whichever comes first. The actual dollar amount depends on your salary at the time you file, your state of residence, and whether you also receive Social Security Disability Insurance (SSDI).

Amazon does not publish a single maximum benefit amount because it varies by state and changes annually. Your benefits are also offset by SSDI payments: if you receive SSDI, Amazon reduces your LTD check so that SSDI plus LTD does not exceed 60% of your pre-disability earnings. This means SSDI does not increase your total income — it straightforward shifts which program pays which portion.

The plan covers full-time and part-time employees who have completed a waiting period, typically 90 days of continuous disability. You must be under age 65 and actively employed at the time you become disabled. Contractors and seasonal workers are not covered.

Key Takeaways

  • Amazon LTD pays 60% of your base salary, not including bonuses, stock, or commissions, with a monthly maximum that depends on your state.
  • If you receive SSDI, Amazon reduces your LTD payment dollar-for-dollar, so your total from both programs stays at 60% of pre-disability earnings.
  • Benefits continue until age 65, recovery, or the end of your benefit period, whichever happens first.
  • You must have been employed for at least 90 days and be unable to work at any job — not just your Amazon role — to receive payments.
  • Amazon requires medical documentation and periodic recertification to continue paying benefits.

How the 60% calculation works with your actual salary

The 60% is calculated on your base monthly salary only. If you earn $5,000 per month in base pay, your LTD benefit would be $3,000 per month before any offsets or state maximums explore. Bonuses, stock awards, commissions, and overtime do not count toward the calculation, even if they are part of your regular earnings.

Your benefit amount is locked in at the time you file your claim. If you receive a raise after you become disabled, your LTD payment does not increase. This is why the timing of your claim matters: if you are about to receive a promotion or bonus, filing before that increase takes effect will result in a lower benefit.

Each state sets a maximum monthly benefit amount for LTD plans. In some states this maximum is $5,000 per month; in others it is higher or lower. If your 60% calculation exceeds your state's maximum, you receive the maximum instead. Amazon's benefits team can tell you the specific maximum for your state when you file.

The SSDI offset and how it reduces your Amazon payment

If you are also receiving Social Security Disability Insurance, Amazon's plan includes an offset clause. This means Amazon subtracts your SSDI payment from what it would otherwise pay you. The goal is to prevent you from receiving more than 60% of your pre-disability income from all sources combined.

Example: You earned $5,000 per month. Amazon would normally pay $3,000 (60%). You are approved for SSDI and receive $1,500 per month. Amazon now pays you $1,500 per month ($3,000 minus the $1,500 SSDI). Your total income is $3,000 — still 60% of your pre-disability earnings.

This offset applies whether you receive SSDI as a disabled worker, a widow or widower, or a dependent. You must report SSDI payments to Amazon within 30 days of receiving your first payment. If you do not report SSDI and Amazon discovers it later, you may owe back the overpayment.

If your SSDI payment is later reduced or terminated, you should notify Amazon when ready. Your LTD payment will increase to make up the difference, up to the original 60% amount.

When payments stop and what happens at age 65

Amazon's LTD plan terminates your benefits on the earlier of three dates: when you turn 65, when you return to work, or when your benefit period ends. The benefit period is typically until age 65 for most employees, though some older workers may have shorter periods depending on when they were hired.

If you recover and are able to return to work before age 65, your benefits stop when ready. Amazon does not continue partial payments if you return part-time or in a reduced capacity. You either receive the full 60% or nothing.

At age 65, Amazon stops paying LTD and you become responsible for your own income. At that point, you may be able to claim Social Security retirement benefits (if you have enough work credits) or continue SSDI if you were approved before age 65. These are separate programs with their own rules and payment amounts.

Medical documentation and recertification requirements

To begin receiving LTD, you must submit medical evidence that you cannot perform your own job or any other job you are reasonably suited for. This is called the own-occupation definition for the first 24 months, then it shifts to any-occupation after that. During the own-occupation period, Amazon only cares whether you can do your specific Amazon role. After 24 months, you must prove you cannot do any job, anywhere.

Amazon uses a third-party claims administrator (typically Sedgwick or a similar company) to review your medical records. You will need to provide your doctor's statement, medical test results, and treatment records. The review process typically takes 30 to 60 days.

Once approved, you must recertify your disability periodically — usually every 12 months, though Amazon may request updates more frequently if your condition is expected to improve. Failure to submit recertification on time can result in a temporary suspension of benefits until you provide the documentation.

How Amazon LTD coordinates with other income sources

Amazon LTD offsets not only SSDI but also workers' compensation, unemployment insurance, and certain other disability payments. The goal is always the same: your total income from all sources should not exceed 60% of your pre-disability earnings.

If you receive workers' compensation for a work-related injury, Amazon reduces your LTD dollar-for-dollar. If you are also collecting unemployment (which is rare while on LTD, since you are not able to work), that also reduces your benefit. Some states have specific rules about how these programs interact, so the offset may not be exactly dollar-for-dollar in every case.

Pension income, investment income, and spousal support do not reduce your LTD benefit. Only income that is meant to replace lost wages — SSDI, workers' comp, unemployment, and other disability payments — triggers an offset.

What is not covered and common reasons claims are denied

Amazon LTD does not cover disabilities caused by alcohol or drug use, self-inflicted injuries, or criminal activity. It also does not cover pregnancy-related conditions unless they result in a medical complication that prevents you from working. Cosmetic surgery complications and elective procedures are typically excluded unless the surgery was medically necessary.

Claims are most often denied because the medical evidence does not support that you are unable to work. Amazon's claims administrator may conclude that your condition allows you to perform some type of work, even if not your current job. If your doctor says you are "unable to work" but the medical records do not show objective findings (test results, imaging, measurable limitations), the claim may be denied.

Pre-existing condition exclusions explore if you had the condition before your coverage began, though most Amazon plans waive this exclusion after 12 months of continuous coverage. If you file a claim within the first year for a condition you had before you were hired, it may be denied.

Frequently Asked Questions

Does Amazon LTD pay during the 90-day waiting period?

No. You must be continuously unable to work for 90 days before benefits begin. During this time, you can use paid time off (PTO) or unpaid leave, but Amazon does not pay LTD. Some employees use short-term disability (STD) during this period if they have it, though STD is a separate plan with its own rules.

What happens to my health insurance while I am on LTD?

Amazon continues your health insurance coverage while you receive LTD, though you typically must continue paying your share of the premium. Some plans allow you to pay the premium from your LTD check; others require you to pay separately. Contact Amazon's benefits team to confirm how premiums are handled during your claim.

Can I work part-time while receiving Amazon LTD?

No. LTD requires that you be unable to work at any job. If you earn income from any source while on LTD, you must report it to Amazon. Earning income may result in a reduction or termination of your benefit, depending on how much you earn and your state's rules.

If I am denied, can I appeal?

Yes. Amazon's claims administrator provides a written denial letter that explains why your claim was denied and how to appeal. You have a limited time (usually 60 days) to submit additional medical evidence or written arguments. An appeal goes to a different reviewer, though it is still handled by the third-party administrator, not Amazon directly.

Does Amazon LTD count toward my Social Security work credits?

No. LTD payments are not considered earnings, so they do not count toward Social Security work credits. If you are on LTD for several years before age 62, you may have a gap in your work history that affects your eventual Social Security retirement benefit amount.