The formula starts with your highest quarter of earnings in the past 12 months

California State Disability Insurance (SDI) calculates your weekly benefit by looking at the highest three consecutive months (one quarter) of earnings in the 12 months before your claim begins. The state takes your total wages from that quarter, divides by 13, and that becomes your average weekly wage. Your actual weekly benefit is then 60 to 70 percent of that average, depending on how much you earned.

The state does not average all 12 months of your income. It uses only your best quarter. This means if you had a strong three-month period followed by lower earnings, you benefit from that peak. If you had a weak quarter in your highest-earning 12 months, that still counts as your base.

There is a maximum weekly benefit amount and a minimum. The maximum changes each year; in 2024 it is $1,540 per week for regular SDI claims. The minimum is much lower—currently $50 per week. If your calculation falls below the minimum, you receive the minimum. If it exceeds the maximum, you receive the maximum.

Key Takeaways

  • Your benefit is based on your highest-earning quarter in the 12 months before your claim, not an average of the whole year.
  • The state pays you 60 to 70 percent of your average weekly wage from that quarter, subject to a state-set minimum and maximum.
  • The maximum weekly benefit amount increases each year and is currently $1,540; the minimum is $50.
  • Wages reported to the state through payroll taxes are what count—self-employment income, cash tips not reported, and informal work do not factor in.
  • If you worked part of the year or had unpaid leave, your quarter average will be lower, which lowers your weekly benefit.

What counts as earnings in the calculation

Only wages reported to the California Employment Development Department (EDD) through payroll tax withholding count toward your benefit. This includes regular salary, hourly wages, bonuses, and paid vacation or sick leave you actually received. Overtime is included at the rate you were paid.

Self-employment income does not count, even if you paid self-employment tax. Cash tips that were not reported to your employer do not count. Unpaid family leave, unpaid medical leave, or any period you were not on payroll does not count—those weeks straightforward do not exist in the calculation. If you took three months of unpaid leave in your highest-earning quarter, that quarter's average will be lower because you have fewer weeks of reported wages spread across 13 weeks.

Bonuses and commissions count if they were paid and reported during the quarter. If a bonus was earned in one quarter but paid in another, the quarter in which it was actually paid is what matters for the calculation.

How the 60 to 70 percent rate is determined

The exact percentage you receive—somewhere between 60 and 70 percent of your average weekly wage—depends on your income level. Workers with lower average weekly wages receive a higher percentage (closer to 70 percent), while workers with higher average weekly wages receive a lower percentage (closer to 60 percent). This is a progressive structure: the state replaces a larger share of income for lower-wage workers.

The state publishes a table each year showing the exact percentage based on your average weekly wage. You do not choose the percentage; it is determined by where your average weekly wage falls on that table. The EDD applies the correct percentage automatically when it calculates your benefit.

What happens if you worked part of the year

If you started a job partway through the 12-month lookback period, or if you left a job and did not work for part of that time, your highest quarter will still be used—but it will be lower than it would have been if you worked the full year. The calculation does not adjust for partial-year work; it straightforward divides whatever wages you earned in your best quarter by 13.

For example, if you earned $6,500 in your highest quarter, your average weekly wage is $500. If you earned $3,250 in your highest quarter (because you worked only six weeks of it), your average weekly wage is $250. The formula is the same; the outcome is lower because the numerator is lower.

If you have not worked long enough to have a full 12-month history with California employers, the EDD uses whatever period you have worked. A worker with only six months of California wages will have their highest quarter from those six months used as the base.

The role of the maximum and minimum benefit amounts

Every year, California sets a maximum weekly SDI benefit and a minimum. These are not based on your individual earnings; they are state-wide caps. In 2024, the maximum is $1,540 per week. If your calculation yields $1,800 per week, you receive $1,540. The minimum is $50 per week; if your calculation yields $30, you receive $50.

The maximum and minimum are adjusted annually, usually in January, based on changes in California's average weekly wage. If you are receiving SDI and the maximum increases, your benefit does not automatically increase unless your own calculation would have increased anyway. The maximum is a ceiling, not a may provide of a raise.

Very few workers hit the maximum; it requires an average weekly wage of roughly $2,200 or higher. Workers with lower incomes are more likely to hit the minimum, especially if they worked part-time or part of the year.

How the EDD verifies your earnings

The EDD does not ask you to prove your earnings with pay stubs during the claim process. Instead, it pulls wage records directly from the California payroll tax system. Every employer in California reports quarterly wages to the state, and the EDD has access to those records. When you file a claim, the EDD looks up your wage history automatically.

If there is a discrepancy—for example, you believe you earned more than what the records show—you can provide pay stubs or other documentation to the EDD. The state will investigate and correct the record if the documentation supports a higher amount. This process can take several weeks.

If you worked for an employer outside California, those wages do not appear in the California system and do not count toward your SDI benefit, even if you paid California taxes. Only wages reported to California's payroll system are included.

How partial disability and extended benefits affect the calculation

If you are approved for partial disability (meaning you can work part-time but not full-time), your weekly benefit is reduced by 50 percent of the wages you earn while on claim. The base calculation remains the same, but you receive less because you are earning some income. The EDD requires you to report your work earnings each week.

If your claim extends beyond the standard benefit period and you move into extended SDI, the calculation does not change. Your weekly benefit amount stays the same; you straightforward receive it for additional weeks if you remain disabled and meet the program's requirements.

Frequently Asked Questions

Does my benefit amount change if I get a raise while I am on SDI?

No. Your benefit is locked in based on your earnings in the 12 months before your claim started. Raises or job changes after your claim begins do not affect the amount you receive. The benefit stays the same for the entire claim period unless you move to partial disability or the state adjusts the maximum benefit amount.

What if I had multiple jobs in my highest quarter?

All wages from all jobs are added together. If you earned $3,000 from one employer and $2,500 from another in the same quarter, your total is $5,500, and that is divided by 13 to get your average weekly wage. The EDD pulls all reported wages from the California system regardless of how many employers you had.

Can I appeal if I think my benefit calculation is wrong?

Yes. If you believe the EDD made an error in calculating your benefit, you can request a reconsideration within 20 days of receiving your benefit information letter. Provide documentation such as pay stubs or tax returns that show different earnings. The EDD will review and issue a new information if the evidence supports a change.

Does my benefit go up if the state maximum increases while I am on claim?

Only if your own calculation would have increased. If you are receiving $1,200 per week and the maximum rises from $1,540 to $1,560, your benefit does not change. If the maximum rises and you are already at the maximum, you do not receive an increase. The maximum is a ceiling, not an automatic annual raise.

What if I did not work in California before my disability started?

You must have at least $300 in wages reported to California in the 12 months before your claim to be found able to receive SDI. If you have no California wage history, you are not able to receive SDI benefits. Wages from other states do not count, even if you paid federal taxes.