How Social Security Disability Insurance (SSDI) Benefits Are Calculated

SSDI benefits are not based on your current income or how severe your condition is. Instead, they’re based on your work history and the amount you paid into Social Security through payroll taxes over the years. Here’s how it works:

Average Indexed Monthly Earnings (AIME):

The SSA looks at your highest-earning years and calculates your average monthly earnings, adjusted for inflation. This becomes your AIME.

Primary Insurance Amount (PIA):

Your AIME is then used to calculate your PIA, which is the base figure for your monthly disability benefit. This is done using a formula that gives you a percentage of your AIME:

• 90% of the first portion of your AIME
• 32% of the next portion
• 15% of the remaining portion

These percentages are applied in tiers (called “bend points”) and adjusted yearly.

Your Monthly SSDI Benefit:

Your monthly benefit is usually close to what your Social Security retirement benefit would be at full retirement age. The maximum monthly SSDI benefit for 2024 is about $3,822, but the average is closer to $1,500–$1,800.

How Supplemental Security Income (SSI) Is Calculated

If you're applying for SSI, a need-based program, the calculation is different. SSI doesn't consider your work history—instead, it’s based on your income and assets.

• The federal base rate for SSI in 2024 is $943/month for individuals and $1,415/month for couples.
• Your countable income (like wages, pensions, or in-kind support) is subtracted from this amount to determine your benefit.
• Some states offer additional supplements to increase the monthly amount.

Factors That Can Affect Your Disability Payment

• Other income: Some income (like workers’ comp or public disability benefits) can reduce your SSDI.
• Dependent benefits: If you have eligible dependents, they may receive a small monthly benefit as well.
• Cost of living adjustments (COLA): Benefits typically increase each year based on inflation.