If you’re applying for State Disability Insurance (SDI) in California, one of the first things you’ll want to know is how much you’ll actually get paid. The EDD uses a specific formula to calculate your weekly benefit amount, and while it might sound a little confusing at first, it’s pretty straightforward once you break it down. Let’s walk through it step by step.
How the EDD Figures Out Your Benefit Amount
Your SDI payments are based on your earnings during something called your base period. This is a 12-month window split into four quarters, but the tricky part is that it doesn’t include your most recent work history.
Here’s what the EDD looks at:
- The Base Period
Your base period is the 12 months before the quarter in which your claim starts. For example:- If your claim starts in December 2024, your base period is July 2023 – June 2024.
- If your claim starts in January 2025, the base period shifts to October 2023 – September 2024.
- The most recent three months before your claim? Those don’t count.
- Your Highest-Earning Quarter
From your base period, the EDD finds the quarter where you earned the most money. - Your Weekly Benefit Amount
- They’ll take those highest earnings, divide them by 13 (the number of weeks in a quarter), and then pay you 60-70% of that weekly amount.
- The exact percentage depends on your total income—lower earners usually get closer to 70%, while higher earners get around 60%.
- Minimums and Maximums
- The smallest amount you can get per week is $50.
- The maximum amount in 2024 is $1,620, but starting in 2025, it jumps to $2,035 thanks to a new law increasing SDI benefits.
Let’s Do the Math
Here’s a quick example:
Say your highest-earning quarter in the base period was January – March 2024, and you made $12,000.
- Divide $12,000 by 13 weeks: $12,000 ÷ 13 = $923.08
- Multiply by 60%: $923.08 × 0.6 = $553.85
Your weekly benefit amount would be $554 (rounded to the nearest dollar).
What About Gig Workers or the Self-Employed?
If you’re self-employed or working gig jobs, you’re only eligible for SDI if you opted into the program and have been paying contributions through elective coverage. The process is the same, but your benefit will depend on the earnings you reported during your base period.
Why Does the Base Period Matter?
Your base period determines how much you’ll get paid. If you had a big drop in income recently—like switching jobs, cutting hours, or taking unpaid leave—it could lower your benefits. Timing your claim strategically can make a big difference.
How to Get the Most Out of Your Benefits
Here are some tips to maximize your SDI benefits:
- Double-check your earnings. Make sure your employer reported your wages correctly to the EDD.
- Time your claim wisely. Filing your claim in a quarter where your earnings were higher can boost your benefit amount.
- Plan ahead if you’re self-employed. Opting into elective SDI coverage is worth it for peace of mind.
Final Thoughts
The EDD’s benefit calculation process might feel like a puzzle, but once you understand the basics, it’s easier to see how it all adds up. If you’re still feeling unsure or want personalized help, there are professionals who can guide you through the process and make sure you’re set up to get the most out of your leave.
Got questions? Reach out—we’re here to help!
