The formula starts with your highest-earning quarter in the past 12 months

California State Disability Insurance (SDI) calculates your weekly payment by looking at your earnings over a specific period, then explore a percentage to determine what you receive. The state uses your highest-earning quarter — any three-month period in the 12 months before your claim starts — and bases your payment on that amount.

The actual calculation is straightforward: the state takes 60 to 70 percent of your average weekly wage during that highest quarter. The exact percentage depends on which quarter you earned the most and when your disability began. This means someone earning $2,000 per week will receive a different payment than someone earning $1,000 per week, even if both are on SDI.

Your payment amount is also subject to a maximum weekly benefit and a minimum weekly benefit. These limits change each year. For 2024, the maximum is higher than it was in 2023, and it will be higher again in 2025. The state adjusts these caps annually based on wage growth, so the exact dollar amount you receive depends partly on when your claim begins.

Key Takeaways

  • SDI uses your highest-earning quarter in the 12 months before your claim to calculate your weekly payment.
  • You receive 60 to 70 percent of your average weekly wage from that quarter, subject to state minimum and maximum limits that change yearly.
  • The state looks at your actual reported earnings, so self-employment income, tips, and bonuses count only if you reported them to the California Employment Development Department (EDD).
  • If you worked part of the year or had variable income, your highest quarter may be lower than your annual average, which reduces your weekly payment.

How the state determines your highest-earning quarter

The EDD reviews your wage records for the 12 months before your disability claim begins. It divides that year into four quarters and identifies which three-month period had the highest total earnings. This is not necessarily the most recent quarter — if you earned more money three months ago than you did last month, the state uses the earlier quarter.

The quarters follow the calendar year: January–March, April–June, July–September, and October–December. If your claim starts in March 2024, the EDD looks back to March 2023 and examines all four quarters from that period. Whichever quarter shows the most earnings becomes the basis for your calculation.

Your employer reports your wages to the EDD through payroll tax filings. If you are self-employed, you report income on your tax return. The state uses only the income it has on record — if you were paid in cash and never reported it, or if your employer failed to report your wages, the EDD will not count that money toward your calculation.

The percentage applied to your average weekly wage

Once the EDD identifies your highest-earning quarter, it divides that total by 13 to get your average weekly wage for that period. Then it multiplies that weekly amount by either 60 or 70 percent, depending on the rules in effect when your claim begins.

The percentage is set by state law and does not vary based on your personal situation. You do not choose between 60 and 70 percent — the state applies whichever rate is current. In recent years, California has used 60 percent for most claims, but this can change. The percentage is the same whether you earned $500 per week or $5,000 per week.

Example: If your highest quarter total was $6,500, your average weekly wage is $500 ($6,500 ÷ 13). At 60 percent, your calculated payment would be $300 per week ($500 × 0.60). However, this amount is then checked against the state minimum and maximum to determine your final payment.

Minimum and maximum weekly benefit amounts

California sets a floor and a ceiling on SDI payments each year. No matter how low your earnings were, you cannot receive less than the minimum. No matter how high your earnings were, you cannot receive more than the maximum.

These amounts change annually. In 2024, the minimum weekly benefit is lower than the maximum, and both figures are higher than they were in 2023. The state adjusts them based on changes in average wages across California. If you want to know the exact dollar amounts for the year your claim begins, you can find them on the EDD website or call the SDI phone line.

The minimum protects low-wage workers — someone earning $200 per week will not receive only $120 per week (60 percent of $200). The maximum protects the state's fund — someone earning $5,000 per week will not receive $3,000 per week (60 percent of $5,000). Both limits mean your actual payment may differ from the straightforward 60 or 70 percent calculation.

How part-time work and variable income affect your calculation

If you worked only part of the year before your claim, your highest quarter may be lower than if you had worked all 12 months. The EDD does not adjust for this — it uses the actual earnings from your highest quarter, even if that quarter was unusually slow or you started the job partway through the year.

Similarly, if your income varies month to month, your highest quarter might be much higher or much lower than your average earnings across the full year. A seasonal worker who earned $8,000 in summer but $500 in winter will have a highest quarter of $8,000, even though their annual average is much lower. Conversely, someone who earned $2,000 every month except one slow month might have a highest quarter of only $6,000 instead of $8,000.

The state's method favors workers with consistent income and penalizes those with uneven earnings. If you can document that your highest quarter was unusually high or low, you may be able to request that the EDD use a different calculation method, but this requires a formal appeal and is not automatic.

What earnings count toward your calculation

The EDD counts wages reported by your employer through payroll tax filings. This includes your base salary, hourly wages, bonuses, commissions, and overtime — anything your employer reported to the state. It does not include cash tips unless your employer reported them, or cash payments that were never reported to any government agency.

Self-employment income counts only if you reported it on your federal tax return and the EDD has a record of it. Gig work, freelance income, and side jobs are included only if you filed taxes on that income. If you worked under the table or did not file taxes, that income will not appear in your SDI calculation.

Unemployment benefits, workers' compensation, and other government payments do not count as earnings for SDI purposes. Neither do investment income, rental income, or money from other sources. The EDD looks only at wages and self-employment income that you reported to tax authorities.

How to verify your earnings record before your claim begins

Before you file an SDI claim, you can request a copy of your wage record from the EDD. This shows what the state has on file for your earnings in each quarter. You can review it to make sure your employer reported your wages correctly and to estimate what your SDI payment might be.

To get your wage record, you can create an account on the EDD website, call the SDI phone line, or visit an EDD office in person. The process takes a few days to a few weeks depending on the method. If you find errors — missing wages, incorrect amounts, or wages attributed to the wrong quarter — you can file a correction request with the EDD before you file your disability claim.

Correcting errors before your claim begins is faster than correcting them after. Once your claim is filed and your payment is calculated, changing your wage record requires a formal appeal, which can take several months. Checking your record in advance gives you the chance to fix problems while the process is still straightforward.

Frequently Asked Questions

Does SDI use my most recent earnings or my highest earnings?

SDI uses your highest-earning quarter in the 12 months before your claim, not your most recent quarter. If you earned more money three months ago than you did last month, the state uses the earlier quarter. This can work in your favor if your income dropped recently, or against you if your income was higher in the past.

What if I was laid off or quit my job before my disability started?

The EDD still uses your highest-earning quarter from the 12 months before your claim. If you were laid off or quit, your most recent quarter may show zero earnings, but the state will look back to find your highest quarter. As long as you earned money within the past 12 months, that will be used for your calculation.

Can I request a different calculation method if my highest quarter was unusually high or low?

You can request an alternative calculation if you believe your highest quarter does not fairly represent your normal earnings, but this requires a formal appeal after your claim is filed. The EDD will not automatically use a different method. You will need to provide evidence that your highest quarter was atypical and that another quarter better reflects your usual income.

How do I know what my SDI payment will be before I file a claim?

You can estimate your payment by obtaining your wage record from the EDD, identifying your highest-earning quarter, dividing that total by 13, and multiplying by 60 or 70 percent. Then check that amount against the current year's minimum and maximum limits. The EDD website lists the exact minimum and maximum for each year, so you can see what range your payment will fall into.

Does my SDI payment change if I return to work part-time?

Your weekly SDI payment amount does not change based on current work. It is calculated once when your claim begins and stays the same throughout your claim period. However, if you earn money while on SDI, the state may reduce or eliminate your payment depending on how much you earn. The calculation of your benefit amount and the rules about working while receiving benefits are separate.