What temporary disability pays depends on your state and your wages

Temporary disability insurance (TDI) replaces a portion of your wages while you cannot work due to illness or injury — but not all of it, and the amount varies by state. Five states run their own programs: California, Hawaii, New Jersey, New York, and Rhode Island. A sixth, Puerto Rico, also has one. In most other states, private insurers offer it through your employer, and the benefit amount depends on what your employer's plan covers.

The replacement rate — the percentage of your regular pay you receive — typically ranges from 50 to 66 percent of your average weekly wage. Most state programs have a weekly maximum benefit amount, which means if you earn above a certain threshold, you hit the cap and receive no more, even though your actual lost wages are higher. These maximums change yearly and vary significantly by state.

The waiting period before benefits begin also affects what you actually receive. Most state programs require you to wait 7 to 14 days after your disability starts before the first payment arrives. Some employers offer plans with no waiting period, but you pay for that through payroll deductions. If you are out of work for only two weeks, a 14-day waiting period means you receive nothing.

Key Takeaways

  • State temporary disability programs replace 50 to 66 percent of your average weekly wage, up to a state-set maximum that changes each year.
  • California, Hawaii, New Jersey, New York, and Rhode Island run their own programs; other states rely on private insurance through employers.
  • Most programs have a waiting period of 7 to 14 days before your first payment, so short absences may not may have access to for any benefit.
  • Your actual benefit amount depends on your recent earnings history, not your job title or how long you have worked there.

How states calculate your weekly benefit amount

State programs base your benefit on your average weekly wage during a specific period before your disability began — usually the highest-earning quarter in the past year, or sometimes the past 52 weeks. They then explore the replacement percentage (typically 55 to 66 percent) to that average. If the result exceeds the state's weekly maximum, you receive the maximum instead.

For example, in California in 2024, the maximum weekly benefit is $1,540 for most claims. If your average weekly wage is $2,000, you would normally receive 66 percent of that ($1,320), which is below the cap, so you get $1,320. If your average weekly wage is $2,500, you would normally receive $1,650, but that exceeds the maximum, so you receive $1,540 instead. The state publishes these maximums annually, and they typically increase slightly each year.

New Jersey, New York, Hawaii, and Rhode Island use similar formulas but with different replacement rates and different maximum amounts. New Jersey's 2024 maximum is $993 per week. New York's is $1,171. Hawaii's is $686. Rhode Island's is $1,024. These figures change, so you should verify the current amount with your state's labor department before you file a claim.

Private insurance plans through employers

If your employer offers short-term disability through a private insurer, the benefit amount is set by your employer's plan document, not by state law. Some plans pay 60 percent of salary; others pay 70 or 80 percent. Some have a waiting period of 0 days; others have 7 or 14 days. The maximum weekly benefit might be $500, $1,000, $2,000, or something else entirely — it depends entirely on what your employer chose to purchase.

You can find this information in your employee handbook or benefits summary, or by contacting your HR department. If your employer does not offer a plan, you cannot buy private temporary disability insurance on your own in most states — it is only available through an employer group plan. The exception is California, Hawaii, New Jersey, New York, and Rhode Island, where you can file a claim with the state program even if your employer does not offer private coverage.

Some employers offer both: a private plan that covers the first few weeks, and state TDI that kicks in after the private benefit ends or runs out. If that is your situation, your HR department should explain how the two coordinate and what your total benefit will be.

How long benefits last

State temporary disability programs typically pay for up to 26 weeks of disability in a 12-month period. Some states allow you to receive benefits for the same condition multiple times within that year, as long as you do not exceed 26 weeks total. Others treat each separate claim as its own 26-week window. New York allows up to 26 weeks per claim; California allows up to 52 weeks for the same disability if you remain unable to work that long.

Private employer plans vary widely. Some pay for 8 weeks, others for 13 weeks, others for 26 weeks. A few pay longer. Your plan document will specify the maximum duration. If your disability lasts longer than your temporary disability benefit period, you may be able to transition to long-term disability (LTD) if your employer offers it, or to Social Security Disability Insurance (SSDI) if you meet the federal definition of disability.

The benefit period clock usually resets on a calendar-year or benefit-year basis. If you exhaust your 26 weeks in June, you typically cannot receive more temporary disability benefits until January (if your plan year is calendar) or until the anniversary of your first claim (if your plan year is benefit-year). Check your plan document or ask HR to confirm how the reset works.

What counts as your "average weekly wage"

State programs look at your actual earnings in the period they specify — usually your highest-earning quarter in the past year. They include your base salary or hourly wages, but the treatment of overtime, bonuses, and commissions varies by state. Some states include all earnings; others exclude overtime or cap how much overtime counts. A few exclude bonuses or commissions entirely.

If you were not working for the full period the state examines, they may use a shorter period or calculate an average across the time you did work. If you recently started a job, your average may be lower than it will be after a full year of earnings. If you took unpaid leave, that time may reduce your average. Self-employed people and gig workers typically cannot use state TDI; they may have other options depending on the state.

The state will ask you to provide recent pay stubs when you file your claim. They use those to verify your earnings and calculate your benefit. If your employer reports different earnings to the state than what your pay stubs show, the state will investigate and may delay your benefit while they sort it out.

Taxes and other deductions from your benefit

Temporary disability benefits are generally not subject to federal income tax, but some states tax them. California, New Jersey, and New York do not tax TDI benefits. Hawaii and Rhode Island do. If you live in a state that taxes TDI, the state will withhold tax from your benefit payment, so your actual check will be smaller than the benefit amount.

Temporary disability benefits are also not subject to Social Security tax or Medicare tax. They do not count as earnings for purposes of Social Security, so they do not increase your future Social Security benefit. If you are receiving other benefits — such as workers' compensation, unemployment insurance, or Social Security — your TDI benefit may be reduced or eliminated depending on your state's rules and the type of benefit.

Some states reduce your TDI benefit by the amount of workers' compensation you receive for the same disability. Others do not. If you are receiving unemployment benefits and then become disabled, your TDI claim will usually pause your unemployment benefits. Ask your state's labor department whether your specific situation triggers any offset or reduction.

How to find out what you would receive

If you live in California, Hawaii, New Jersey, New York, or Rhode Island, visit your state's labor department website. Each publishes a current benefit rate table and a calculator tool. You enter your average weekly wage, and the tool shows you the benefit amount. The websites also explain the waiting period, maximum duration, and what conditions may have access to.

If your employer offers private temporary disability insurance, contact your HR or benefits department and ask for a copy of the plan summary or benefits guide. This document will state the replacement percentage, waiting period, maximum weekly benefit, and maximum duration. If you cannot find it, ask HR to explain your coverage in writing.

If you are unsure whether you have coverage at all, start by asking your employer. If they say you do not, check whether you live in one of the five states with a state program — if you do, you may be covered by the state even if your employer does not offer private insurance. The state labor department can tell you whether you are covered and what your benefit would be based on your recent earnings.

Frequently Asked Questions

Does temporary disability pay my full salary?

No. State programs replace 50 to 66 percent of your average weekly wage, up to a state maximum. Private plans vary but typically replace 60 to 80 percent. You will receive less than your normal paycheck. If you have savings or other income, you may need to use those to cover the gap.

What if I am on temporary disability for only one week?

Most state programs have a 7 to 14-day waiting period before benefits begin. If you are out of work for only one week, you may receive nothing. Some private employer plans have no waiting period, so check your plan document. After the waiting period ends, you receive your weekly benefit amount for each week you remain unable to work.

Can I receive temporary disability and workers' compensation at the same time?

It depends on your state. Some states reduce your TDI benefit by the amount of workers' compensation you receive for the same injury. Others allow you to receive both. Check your state's labor department website or ask your employer's benefits department which rule applies to you.

Does temporary disability count toward Social Security?

No. Temporary disability benefits do not count as earnings for Social Security purposes, so they do not increase your future Social Security benefit amount. They also do not count as work history toward SSDI. If you become permanently disabled, you would need to file a separate SSDI claim based on your actual work history.

What happens when my temporary disability benefits run out?

Most state programs pay for up to 26 weeks per 12-month period. If you remain unable to work after that, you may transition to long-term disability if your employer offers it, or to SSDI if you meet the federal definition of disability. Some employers coordinate their private plans with state TDI so you receive continuous benefits. Ask your HR department how your coverage works.