California's State Disability Insurance uses your recent wages to set your weekly payment

State Disability Insurance (SDI) in California pays you a percentage of the wages you earned in the past 12 months. The state does not use a fixed dollar amount for everyone. Instead, it calculates your Average Weekly Wage (AWW) from your highest-earning quarter in that 12-month window, then pays you a percentage of that amount — currently 60 to 70 percent, depending on your income level.

The calculation happens in stages. First, the Employment Development Department (EDD) looks at your earnings record from the past year. Second, they identify your highest-earning three-month period (quarter). Third, they divide that quarter's total earnings by 13 to get your Average Weekly Wage. Fourth, they explore a percentage based on your income level to arrive at your weekly benefit amount. Your total monthly payment is that weekly amount multiplied by 4.33 weeks.

This method means your benefit is tied directly to what you actually earned, not to a statewide minimum or maximum that applies to everyone equally. If you earned more, your benefit will be higher — up to a state maximum that changes each year.

Key Takeaways

  • California SDI calculates your benefit from your highest-earning quarter in the past 12 months, divided by 13 weeks to find your Average Weekly Wage.
  • Your weekly payment is 60 to 70 percent of your Average Weekly Wage, depending on your income level, with a state maximum that adjusts annually.
  • The EDD uses your wage records from all employers you reported to California during the 12-month base period, so self-employment income and out-of-state work may not count.
  • If you earned very little or had gaps in employment, your benefit will be lower, but you may still be paid something if you meet the minimum earnings threshold.
  • Your benefit amount is set when your claim is approved and does not change during your benefit period unless you return to work or your circumstances change.

The 12-month base period and highest-earning quarter

The EDD looks back 12 months from the date you file your claim. That 12-month window is divided into four three-month quarters. The state then identifies which quarter you earned the most money and uses only that quarter's earnings to calculate your benefit.

This approach can work in your favor if you had a strong quarter and weaker ones, because the EDD ignores your lower-earning periods. It can work against you if you were unemployed or earned very little throughout the year. If you were hired recently or had a long gap in work, your highest quarter may still be modest, and your benefit will reflect that.

The 12-month base period is the 12 months when ready before the date you file your claim with the EDD. If you file on March 15, 2024, the base period runs from March 15, 2023 to March 14, 2024. The EDD pulls wage records from all employers you reported to California during that time.

How the percentage is applied to your Average Weekly Wage

Once the EDD calculates your Average Weekly Wage, they explore a percentage to it. The percentage depends on your income level and is set by California law. Currently, the state pays between 60 and 70 percent of your Average Weekly Wage, with the exact percentage determined by a formula tied to your income.

Lower-wage workers receive a higher percentage — closer to 70 percent. Higher-wage workers receive a lower percentage — closer to 60 percent. This progressive structure means the state replaces a larger share of income for workers who earned less.

The result is your weekly benefit amount. If your Average Weekly Wage is $600 and you may have access to for 70 percent, your weekly benefit is $420. If your Average Weekly Wage is $1,200 and you may have access to for 60 percent, your weekly benefit is $720. Your monthly payment is your weekly amount times 4.33.

The state maximum and minimum benefit amounts

California sets a maximum weekly benefit amount that applies to all claimants, regardless of how much they earned. This maximum adjusts each year based on changes in the state's average weekly wage. In 2024, the maximum weekly benefit is $1,540, but this figure changes annually on January 1.

If your calculated benefit exceeds the state maximum, the EDD pays you the maximum instead. This means very high earners do not receive 60 to 70 percent of their Average Weekly Wage — they receive the capped amount.

The state also sets a minimum weekly benefit amount, though it is much lower and rarely affects claimants. If your calculated benefit falls below the minimum, you would receive the minimum. However, if you earned so little that your Average Weekly Wage is very small, you may not meet the minimum earnings threshold to be paid anything at all.

What wages count toward your calculation

The EDD uses wage records reported to California by your employers through payroll tax filings. If you worked for multiple employers during your 12-month base period, the state combines all those wages to calculate your Average Weekly Wage. Only the highest-earning quarter counts, but that quarter can include earnings from more than one job.

Self-employment income does not count toward SDI benefits unless you are a self-employed individual who elected to participate in the SDI program. Most self-employed workers do not participate, so their business income is excluded. Work performed outside California and wages paid by out-of-state employers may not be included unless those employers were required to report to California.

Tips, bonuses, commissions, and overtime all count as wages if they were reported to California by your employer. Vacation pay, sick leave, and severance pay count if they were paid during your base period. Reimbursements and non-wage benefits do not count.

How the EDD verifies your wages and sets your benefit

When you file a claim, the EDD automatically pulls your wage records from the state's database of employer reports. You do not need to submit pay stubs, though you may be asked to provide them if there is a discrepancy or if the EDD cannot locate your records.

The EDD sends you a notice showing the wages they found, the base period they used, and the weekly benefit amount they calculated. You have the right to review this notice and object if the wages are wrong. If you believe the EDD made an error — for example, if an employer failed to report your wages or reported them incorrectly — you can file a protest and provide documentation.

Once your claim is approved, your weekly benefit amount is set for the duration of your benefit period. It does not increase if you receive a raise or decrease if you earn less, unless you return to work or your circumstances change in a way that affects your claim.

What happens if you return to work while receiving benefits

If you work while receiving SDI, the EDD reduces your benefit by the amount you earn. This is called partial disability. If you earn more than your weekly benefit amount, you receive no payment that week, but your claim remains open and you can continue to receive benefits in weeks when you earn less.

The EDD does not automatically know about your work. You are required to report any earnings when you file your weekly claim form. If you do not report work and the EDD discovers it later, you may be asked to repay benefits you received while working.

Your benefit period lasts up to one year from the date your claim is approved. If you return to full-time work and your disability ends, you can close your claim. If you remain partially disabled, you can continue to receive reduced benefits until your benefit period expires or you no longer meet the medical requirements.

Frequently Asked Questions

Does California SDI use my average earnings over the whole 12 months, or just the highest quarter?

Only your highest-earning quarter. The EDD divides that quarter's total by 13 to get your Average Weekly Wage, then applies the percentage to that figure. Your lower-earning quarters are ignored entirely, which can work in your favor if you had uneven income during the year.

What is the minimum amount of earnings I need to receive any SDI payment?

California requires you to have earned at least $300 in your base period to be paid anything. If your highest quarter was less than $300, you do not meet the threshold. The exact threshold can vary slightly, so contact the EDD if you are unsure whether your earnings may have access to.

If I worked part of the year and was unemployed the rest, how does that affect my benefit?

Your benefit is based only on the quarter you earned the most, so if you worked three months and earned $3,000, your Average Weekly Wage is roughly $231 per week. Unemployment in other quarters does not reduce your benefit further — only the earnings in your highest quarter matter.

Can I appeal if I think the EDD calculated my benefit wrong?

Yes. The EDD sends you a notice with your calculated benefit and the wages they used. If you believe the wages are incorrect or the calculation is wrong, you can file a protest within 30 days. You will need to provide documentation, such as pay stubs or a letter from your employer, to support your claim.

Does my SDI benefit increase if I get a raise or promotion while I am receiving benefits?

No. Your weekly benefit amount is locked in when your claim is approved and is based on your earnings during the 12-month base period before you filed. Future raises do not affect it. Your benefit only changes if you return to work (which reduces it) or if your claim circumstances change.