Both workers’ compensation and social security disability insurance (SSDI) can be very helpful, especially after an injury. They can be particularly beneficial when you can’t work due to a limiting, severe injury or illness. At the same time, if your injury or illness is work-related, workers’ compensation can also provide benefits for your disability.
However, it’s important to know how they interact. Doing so can help you avoid surprises down the line.
Reduced social security benefits
Workers’ compensation benefits can help if you’ve been hurt or fallen ill due to your job. But it’s important to remember that these benefits could reduce your SSDI benefits. Here’s why: the total amount of your workers’ compensation and SSDI benefits can’t exceed 80% of your average earnings before you became disabled.
So, consider an example where you were making $5,000 a month before your injury. You start receiving workers’ compensation benefits of $2,500 a month. Later, you apply for SSDI, and the Social Security Administration (SSA) approves your $2,700 a month. If you add those two together, it comes to $5,200 a month—which is more than 80% of your pre-disability earnings. So, in this case, the administration would reduce your SSDI benefits to keep the total within the 80% limit.
When to turn to legal help
Navigating all this can be tricky. You might be wondering how much you could get from SSDI and how your workers’ compensation benefits might affect that amount. You might also have questions about what you can do if there are any changes in your benefits.
While workers’ compensation and SSDI can both be very helpful to workers dealing with disabilities, it’s crucial to understand how they affect each other. However, this can be a bit complex. If you’re in this situation, consider seeking legal help. An attorney who knows all about workers’ compensation and SSDI can help you understand your situation and guide you through the process.
