Yes, you can apply for Social Security Disability Insurance (SSDI) while receiving workers' compensation, but your SSDI benefit may be reduced if combined payments exceed about 80% of your average current earnings. Workers' compensation and SSDI are separate programs that share a coordination rule, so you generally file your SSDI claim with the Social Security Administration alongside your workers' compensation claim.
More from this site
Keep reading the latest coverage
How SSDI and Workers' Compensation Interact
When both programs pay benefits for the same disability, Social Security applies a formula to prevent total combined benefits from exceeding the 80% earnings threshold. This can create a workers' compensation offset or a Social Security offset, depending on which program starts first and how each payment is categorized in the formula. The offset ensures that combined benefits do not surpass the limit, but it does not eliminate eligibility for either program.
Key Definitions and Timing
- Workers' compensation offset: The reduction in SSDI caused by high workers' comp payments relative to pre-injury earnings.
- Social Security offset: A reduction in workers' comp to protect the SSDI portion of the combined total.
- Dependents and auxiliary benefits: Spousal or child benefits may also be affected by the same combined limits.
Applying While Receiving Workers' Compensation
You can submit a new SSDI application even while receiving ongoing workers' compensation payments. The Social Security Administration will request medical records from your workers' compensation case and may schedule consultative exams. Because workers' compensation often pays for medical treatment and wage loss, the offset calculation typically results in some reduction of SSDI, but benefit stacking is still possible up to the threshold.
Offset Examples by Weekly Payment Level
| Pre-Injury Average Weekly Wage | Workers' Compensation Payment | Approximate SSDI Payment Before Offset | Combined Total (Workers' Comp + SSDI) |
|---|---|---|---|
| $1,000 | $600 | $400 | $760 |
| $1,000 | $400 | $400 | $800 |
| $1,000 | $200 | $400 | $600 |
What to Do Next
Contact the Social Security Administration to start a disability claim and provide details about your workers' compensation claim, including payment amounts and schedule. Respond promptly to any requests for medical information, and keep records of all correspondence. If you receive a notice of offset, review it carefully; you can appeal or request reconsideration if you believe the calculation is incorrect or if your circumstances change.