Social Security withdrew a proposal that would have reduced how much disabled workers could earn before their benefits were reduced

In 2023, Social Security proposed a change to how it treats work earnings for people receiving Supplemental Security Income (SSI) and SSDI. The agency wanted to lower the substantial gainful activity (SGA) threshold—the amount of monthly income above which Social Security assumes you are working and reduces or stops your benefits. Social Security announced in late 2024 that it was dropping this proposal entirely.

This matters because the SGA threshold directly affects how much you can earn without losing benefits. When the proposal was active, it created uncertainty about future payment amounts. Now that it has been withdrawn, the current thresholds remain in place, and you can plan around the numbers that exist today rather than numbers that might have changed.

The withdrawal does not change your current benefits or the rules you follow right now. It straightforward means Social Security is not moving forward with a plan that would have made the threshold lower in future years.

Key Takeaways

  • Social Security dropped a proposal that would have lowered the SGA threshold, which is the income limit before benefits are reduced.
  • The current SGA threshold for 2024 is $1,550 per month for non-blind workers and $2,590 for blind workers; these amounts adjust yearly for inflation.
  • Dropping the proposal means the threshold will continue to rise with inflation each year, rather than being lowered by a new formula.
  • Your current SSDI or SSI benefits are not affected by this withdrawal, and the work incentives available to you remain the same.

What the SGA threshold is and why it matters to your payment

The substantial gainful activity threshold is a dollar amount Social Security uses to decide whether you are working at a level that means you should not receive disability benefits. If your monthly earnings exceed this threshold, Social Security will assume you are capable of substantial work and may reduce or terminate your benefits.

The threshold is not the same as your benefit amount. You can earn money and still receive SSDI or SSI—the threshold just marks the point where Social Security treats your earnings as evidence that you are no longer disabled. For 2024, the threshold is $1,550 per month for non-blind workers and $2,590 for blind workers under the rules for SSDI. SSI has different rules and uses a different calculation.

Social Security raises the threshold each year to match inflation. In 2023 it was $1,470 for non-blind workers; in 2024 it became $1,550. This yearly increase means the amount you can earn before risking your benefits grows automatically, which is why the proposal to lower it would have been a significant change.

Why Social Security proposed lowering the threshold in the first place

Social Security's reasoning was that the current SGA threshold had not kept pace with wage growth in the general population. The agency argued that if non-disabled workers were earning more on average, the threshold should be lower relative to what those workers made—otherwise, it would be easier for a disabled person to earn above the threshold and lose benefits even though they were still disabled.

The proposal would have created a new formula that tied the threshold to median wages rather than straightforward adjusting it for inflation. Under that formula, the threshold would have dropped significantly in some years and risen more slowly in others. Disability advocates and beneficiaries raised concerns that a lower threshold would push people off benefits faster and make it harder to work part-time while keeping some income support.

Social Security did not explain its decision to withdraw the proposal in detail, but the agency typically steps back from changes when they face sustained opposition from the disability community and when the political environment makes passage unlikely.

What stays the same after the withdrawal

Your current SSDI or SSI benefits do not change. The withdrawal affects only a proposal about future years, not the rules you follow today. If you are currently receiving benefits and working, the SGA threshold that applies to you right now is the one in effect for 2024 and beyond—$1,550 per month for non-blind SSDI beneficiaries.

The work incentives you have access to—such as the trial work period, the extended may be able to access period, and impairment-related work expenses (IRWE)—remain unchanged. These tools let you test your ability to work, earn above the SGA threshold temporarily, and deduct certain work-related costs from your earnings without losing benefits. The withdrawal of the proposal does not affect any of these.

Your Medicare or Medicaid coverage tied to your SSDI or SSI also stays the same. Dropping the proposal does not alter how long you keep health insurance after your cash benefits end or what you have to do to maintain coverage.

How the threshold will change going forward

Without the new formula, the SGA threshold will continue to rise each January based on the national average wage index—a measure of how much workers earned on average in the previous year. This is the same method Social Security has used for decades. The increase is automatic and does not require a new rule or a decision by the agency.

Because wage growth varies year to year, the threshold increase also varies. In some years it rises by 3 or 4 percent; in others it rises by less than 1 percent. You can find the current year's threshold on the Social Security website, and the agency publishes the new threshold each October or November for the following January.

If you are working and your earnings are close to the threshold, it is worth checking the new amount each fall so you know whether a raise or additional hours will push you over the limit. Many beneficiaries use work incentives specifically to manage this—for example, by using the trial work period to test whether they can work above the threshold without losing benefits when ready.

The difference between SGA and other earnings rules

The SGA threshold applies to SSDI beneficiaries and is one way Social Security decides whether you are still disabled. But SSDI has other earnings rules too. If you are under full retirement age and receiving benefits as a family member (for example, as a spouse or child of a worker), a different earnings limit applies to you—currently $23,400 per year, or about $1,950 per month. That limit is separate from the SGA threshold.

SSI has its own earnings rules that are stricter than SSDI. SSI counts most of your earnings against your benefit amount using a formula: for every dollar you earn above $65 per month, your SSI payment drops by 50 cents. There is no SGA threshold for SSI in the same way there is for SSDI, but there is an SSI student earned income exclusion that lets students under 22 exclude up to $2,170 per month in earnings (2024 amount).

Understanding which rule applies to you depends on which program you receive. If you are unsure whether you are on SSDI or SSI, your Social Security statement or your most recent benefit letter will say which one.

What this means for your work plans

If you are thinking about working or increasing your work hours, the withdrawal of the proposal is good news: you can count on the threshold staying at or above its current level, adjusted for inflation each year. You do not have to worry that Social Security will suddenly lower the threshold and force you off benefits.

This stability makes it easier to plan. If you are currently earning $1,200 per month and want to ask for a raise to $1,400, you can do so knowing that the threshold will not drop below that amount. If you are considering a part-time job, you can calculate whether your earnings will stay under the threshold without fear that the rules will change mid-year.

That said, the SGA threshold is just one part of how Social Security decides whether you can work. The agency also looks at whether your condition has improved and whether you are following your treatment plan. Earning below the SGA threshold does not may provide you will keep your benefits if Social Security has other reasons to believe you are no longer disabled.

Frequently Asked Questions

Does this withdrawal mean my benefits will go up?

No. The withdrawal affects only a proposal about future years. Your current benefit amount does not change. You will receive your regular monthly payment, and it will adjust for cost-of-living increases (COLA) each January if Social Security announces one—but that is a separate process from the SGA threshold.

Will the SGA threshold ever be lowered in the future?

Social Security could propose a change again, but there is no current plan to do so. For now, the threshold will continue to rise with inflation each year. If a new proposal is made, it would go through a public comment period and would likely face the same opposition it did this time.

What should I do if I am earning close to the SGA threshold?

Contact your local Social Security office or a work incentives planning and information (WIPA) project to discuss your situation. They can explain whether work incentives like the trial work period or IRWE would help you keep benefits while earning more. WIPA services are free and confidential.

Does this affect SSI or only SSDI?

The proposal was about the SGA threshold, which applies mainly to SSDI. SSI has different earnings rules. However, the withdrawal affects both programs because Social Security manages both and the proposal would have changed how the agency treats work for disabled beneficiaries across the board.

Where can I find the current SGA threshold for my situation?

Visit ssa.gov and search for "substantial gainful activity" or call 1-800-772-1213. Your local Social Security office can also tell you the current threshold and explain how it applies to your specific benefits.