If you’ve been hurt or dealing with a serious health issue that keeps you out of work, you’re probably wondering how you’re supposed to keep paying the bills.
Two common options people look into are workers’ comp and disability benefits.
But figuring out which one pays more (and which one makes sense for your situation) can get confusing fast. The truth is, they’re very different programs, and what you qualify for, and how much you get, really depends on a few things.
In this post, we’ll break down if workers comp or disability pays more, and what factors can change the amount you actually take home.
How Much Does Workers’ Comp Pay?
Workers’ compensation is designed to support you after a work-related injury or illness. If you got hurt on the job, this is typically your first option. The amount you’ll get depends on how much you were earning before the accident and the rules in your state.
Most workers’ comp systems pay about two-thirds of your average weekly wage.
So if you were making $900 a week, you’d likely get around $600 a week.
These payments are usually tax-free, so it goes a bit further than it sounds.
Also, workers’ comp doesn’t just give you weekly checks. It usually covers all your medical bills related to the injury, mileage to appointments, and possibly even vocational training if you can’t go back to your old job.
Some states also offer lump-sum settlements if you have a lasting disability.
Also Read: Is Workers’ Compensation Taxable in California?
How Much Does Disability Pay?
Disability benefits like SSDI are for people who can’t work due to a long-term or permanent medical condition. It doesn’t matter if it happened at work or not.
SSDI is based on your work history and how much you’ve paid into Social Security.
The average monthly payment is around $1,500 as of recent numbers, but it could be higher or lower depending on your earnings record. The maximum monthly SSDI payment is a little over $3,800, but most people don’t get anywhere near that.
One downside: SSDI payments are taxable if you have other income, and they take longer to approve.
Then there’s SSI (Supplemental Security Income), which is based on financial need. It pays even less than SSDI and is meant for people who haven’t worked enough to qualify for SSDI.
Does Workers’ Comp Or Disability Pay More?
In most cases, workers’ comp pays more, especially in the beginning. Since it’s based on your actual earnings and kicks in pretty quickly, it’s a better short-term support system.
Disability, on the other hand, is more of a long-term backup.
It’s usually lower in amount and slower to arrive, but it sticks around for the long haul if your condition is permanent.
Think of workers’ comp like a bridge while you recover, and disability as a fallback if things don’t improve.
Can You Get Both Workers’ Comp And Disability?
Sometimes, yes. If your work injury leads to a long-term disability, you might qualify for both workers’ comp and SSDI.
But here’s the catch: you don’t get the full amount from both programs at once.
There’s something called an “offset” rule. It means SSDI payments may be reduced if you’re getting workers’ comp at the same time. The idea is to keep the total amount of benefits from going over a certain limit.
So even if you qualify for both, the money gets adjusted.
Still, having both in play can be helpful. Workers’ comp might cover your medical costs while SSDI provides some financial stability after the comp benefits run out.
Also Read: What NOT To Do While On Workers’ Comp
Factors That Affect How Much You’ll Get
There’s no single number that fits everyone. A bunch of little things can change how much you end up with. Here are some of the most important ones to keep in mind:
#1 Your Pre-Injury Income
The more you made before your injury, the more you’ll get from workers’ comp. That’s because your comp checks are based on your regular wages.
If you were earning $1,200 a week, your comp benefits will reflect that. But if you were working part-time and only made $300 a week, your payments will be much lower.
For SSDI, your past earnings also matter, but it looks at your full work history, not just recent income.
#2 The Type Of Injury Or Illness
Injuries are treated equally. A broken wrist might put you out of work for a few weeks. A serious back injury could affect you for years or permanently.
The more severe or long-lasting the injury, the more compensation or benefits you could be eligible for.
Permanent injuries may qualify you for long-term disability payments or even a lump-sum workers’ comp settlement.
Short-term issues may only get you a few weeks’ worth of checks.
#3 How Long You’re Unable To Work
If you’re out of work for just a month, you might not even qualify for SSDI. It’s meant for conditions expected to last at least a year.
Workers’ comp, though, usually kicks in right away and continues until you’re cleared to return or your case is settled.
The longer your recovery, the more you’ll receive.
Some people also move from temporary workers’ comp to permanent disability once it’s clear they’re not going back to work.
Also Read: IME Doctor Tricks
#4 Your Work History (For SSDI)
To get SSDI, you have to earn enough “work credits” by paying into Social Security through your paychecks.
The longer you’ve worked, the better your chances, and the bigger your benefit.
Someone who’s worked steadily for 20 years will qualify for more than someone who only worked part-time for a few years.
#5 State Laws (For Workers’ Comp)
Every state has its own workers’ comp system.
That means payout rates, time limits, and eligibility rules vary a lot. Some states have generous maximum weekly payments, while others cap it at a much lower number.
Also, states handle things like medical care, mileage reimbursement, and settlements differently.
So two people with the same injury in two different states might get totally different benefits.
Bottom Line
Workers’ comp usually pays more than disability. It’s based on your actual wages, kicks in faster, and often comes with extra perks like medical coverage.
Disability benefits can help if your condition is long-term or permanent, but the payments are lower and take longer to arrive.
If you’re recovering from a work injury, workers’ comp is probably your best bet to start. If things don’t get better, you may want to explore SSDI too.
Just remember, there are limits to how much you can collect from both.
Not sure what you’re eligible for? Give us a call!
