California State Disability Insurance Increases

By Cepideh Roufougar

Jackson Lewis P.C.

It’s a new year, and California State Disability Insurance (SDI) benefits will be increasing. The SDI withholding rate continues to be 1% of wages. But, the taxable wage limit will increase from $114,967 to $118,371.

For new SDI claims (whether for short- term disability benefits or paid family leave benefits), the maximum weekly benefit will increase from $1,216 to $1,252 a week.

Employers who allow employees to integrate paid leave hours with SDI benefits to receive the equivalent of their full salary should be aware of these increases. Employers should consider asking employees to provide a copy of any Notice of Computation of Benefits from the California Employment Development Department to assist with calculating the maximum value of leave to be integrated.

In addition, employers in San Francisco should pay particular attention to these changes to ensure compliance with the Supplemental Compensation requirements of the San Francisco Paid Parental Leave Ordinance.

***This article originally appeared on the Jackson Lewis’ Disability, Leave & Health Management blog and was reposted on the DMEC website with their permission.***