Can I Get Workers’ Compensation and SSD Benefits at the Same Time?

On This Page

1. How Do Workers' Compensation and SSDI Benefits Work Together?
2. Can I Draw Full SSDI Benefits While Receiving Workers' Compensation?
3. Are There Ways to Reduce the SSDI Offset?
4. Workers' Compensation: Eligibility, Coverage, and Benefits
5. FAQs for Recipients of SSD and Workers’ Compensation
6. How Can I Discuss Workers' Compensation With a Disability Attorney?

REVIEWED BY

C. William Kenny

December 12, 2023

Board certified by National Board of Trial Advocacy

You can get both workers’ compensation and Social Security Disability benefits at the same time in Pennsylvania, although you may not be able to draw the full amount of Social Security Disability Insurance (SSDI). Most people who receive both benefits make too much money and have too many assets to qualify for Supplemental Security Income (SSI). However, it might be possible to qualify for SSI if your workers’ compensation monthly payment is very small.

Social Security Disability lawyers in Pittsburgh can help you understand how workers’ compensation or another source of benefits will impact your Social Security Disability eligibility. Whether it is workers’ compensation, unearned income, or self-employment income, it is a good idea to discuss your options with someone familiar with the rules of this program before you move forward with your application.

How Do Workers’ Compensation and SSDI Benefits Work Together?

Injured workers can draw both workers’ compensation and Social Security Disability Insurance benefits at the same time because they are separate programs with different goals. Neither has an income or asset limit that excludes the other, although your current earnings from compensation programs such as workers’ comp could affect your SSDI payments.

Many people can combine both programs to help make ends meet after they suffer a serious, disabling workplace injury.

Social Security Disability Benefits

The Social Security Administration (SSA) runs two primary programs: SSDI and SSI. These federal programs offer monthly benefits to help those who can no longer work because of a long-term or permanent impairment that leaves them unable to work for at least a year. 

SSDI is the primary program for workers who have a medical condition that prevents them from earning a living, whether or not their diagnosis stems from a work-related injury. SSDI provides monthly benefits to individuals with long-term or permanent disabilities that prevent substantial gainful activity (SGA). For 2025, SGA is defined as earning more than $1,620 per month ($2,460 for blind individuals).

SSI offers benefits to disabled applicants with low or no income and few resources. Having too much in assets and income can hurt your SSI eligibility, and workers’ compensation could impact your ability to receive these benefits. 

While you can receive workers’ compensation and disability benefits, certain factors, such as the SSDI offset rule, may affect the amount you ultimately receive. 

Workers’ Compensation Programs

Workers’ compensation is an insurance program that offers employees medical coverage and cash benefits after an on-the-job injury or occupational illness. Even minor injuries might qualify for benefits, and you could receive medical care coverage even if you never missed work because of your injuries.

Catastrophic injuries that lead to long-term impairments often qualify for continued benefits even after the worker qualifies for SSDI or another disability program. This is when you might need to consider the effects of your workers’ comp income on your SSDI benefits.

A Pittsburgh workers’ compensation lawyer can help you manage all aspects of your claim and answer your questions about how these two programs affect one another.

Can I Draw Full SSDI Benefits While Receiving Workers’ Compensation?

When you receive workers’ compensation or other similar benefits, it may affect the amount of Social Security Disability Insurance you can draw. The SSDI amount will likely decrease if you receive too much in workers’ comp benefits. This is known as an offset.

Under SSA guidelines, the total amount of these benefits cannot be greater than 80 percent of your average earnings before you became disabled. While the SSA calculates this in a number of different ways, the most common method uses the average monthly payment from your top-earning year.

Understanding the Offset

If your total of these two types of benefits exceeds 80 percent of your average wages, the SSA will subtract the extra amount from your SSDI payments. 

Your offset depends on your current earnings from workers’ comp and your SSDI payout. For example, imagine this scenario:

• Your previous wages total $4,000 per month; and
• Your disability benefits, including those for your spouse and children, equal $2,200 per month; and
• You receive $2,000 per month in workers’ compensation benefits.

In this scenario, your total benefits would equal $4,200 per month, which is $1,000 more than 80 percent of your previous wages. This means the SSA would only approve you for up to $1,200 per month. By doing this, the SSA offsets the workers’ compensation payment and ensures you draw only 80 percent of your previous wages.

The best way to learn more about any possible offset based on your compensation claim is to discuss your options with a Social Security Disability attorney from our team. We can also help you file your application for SSDI benefits.

Are There Ways to Reduce the SSDI Offset?

There may be ways to reduce or eliminate this offset, but this is probably not something you can handle on your own. The SSA has complex rules about how they treat this type of offset, and attempting to do this by yourself might cause problems with your benefits or actually increase the offset.

Some ways to potentially reduce an offset include:

Excluding Approved Expenses

The SSA allows you to deduct some fees if you have a workers’ compensation settlement before it considers the total to calculate your offset. This could include:

• Legal fees from your workers’ comp settlement
• Medical expenses not covered by workers’ compensation
• Rehabilitation or therapy costs
• Other approved medical expenses

When you subtract future medical care costs from your payout before the SSA calculates the offset, it could greatly reduce it. Do not forget to document all these approved expenses.

Spreading out a Lump-Sum Payment

If you received a lump-sum workers’ compensation payment, it is not always possible to spread it out and calculate it like a monthly payment. However, it is worth discussing this option because it can greatly reduce your offset. We might be able to help you with this, depending on the wording of your original settlement agreement with workers’ compensation.

Considering Early Social Security Retirement Benefits

You can draw full workers’ compensation benefits at the same time as Social Security retirement benefits. In other words, there is no offset after you reach age 66 or if you opt to take retirement early. However, this is not always the best choice since you do not receive full retirement benefits if you take them early. We can help you do the math and determine if early retirement makes financial sense for you and your family.

Workers’ Compensation: Eligibility, Coverage, and Benefits

Workers’ compensation is an essential safety net for employees who suffer job-related injuries or illnesses. In Pennsylvania, the system provides financial and medical benefits to help injured workers recover and support their families during difficult times. Below is an overview of eligibility, coverage, and benefits under Pennsylvania’s workers’ compensation program.

Eligibility for Workers’ Compensation

To qualify for workers’ compensation in Pennsylvania, you must:

• Be classified as an employee (not an independent contractor or freelancer).
• Suffer a work-related injury or illness while performing job duties.
• Report the injury or illness to your employer within 21 days (failure to do so could jeopardize your claim).
• File a workers’ compensation claim within three years of the injury date.

It’s important to note that Pennsylvania’s workers’ compensation system operates on a no-fault basis. This means employees can receive benefits regardless of who was at fault for the injury—as long as it occurred during the course of employment.

Types of Coverage Offered by Workers’ Compensation

Pennsylvania’s workers’ compensation provides several types of benefits, including:

• Medical Benefits: Covers reasonable and necessary medical treatment related to the workplace injury or illness. This includes surgeries, medications, therapy, and travel expenses for medical appointments.
• Wage-Loss Benefits: Provides income replacement if you’re unable to work due to your injury. Typically, wage-loss benefits equal two-thirds of your average weekly wage, subject to state maximums.
• Specific Loss Benefits: Offers compensation for permanent injuries, such as the loss of a limb, vision, or hearing, even if you can still work.
• Death Benefits: Provides financial support to the dependents of workers who die as a result of a workplace injury or illness. This includes funeral expenses and a portion of the worker’s wage.

Workers’ Compensation Settlements

In cases involving severe or permanent injuries, some workers may choose to negotiate a lump-sum settlement instead of continuing to receive weekly payments. While a settlement can provide immediate financial relief, it is important to carefully structure the agreement to avoid unintended consequences, such as increased SSDI offsets. 

An attorney can ensure your settlement aligns with your long-term financial goals.

Common Workplace Injuries Covered by Workers’ Compensation

Pennsylvania’s workers’ compensation system covers a wide range of injuries, including:

• Falls, slips, and trips
• Repetitive stress injuries (e.g., carpal tunnel syndrome)
• Exposure to toxic substances
• Machinery-related accidents
• Back and spinal injuries

Even minor injuries that require medical attention may qualify for benefits, making it essential to report any workplace injury promptly and accurately.

Exceptions to Workers’ Compensation Coverage

While workers’ compensation is a comprehensive program, there are certain exceptions where benefits may be denied. Some examples include:

• Horseplay or Fooling Around: If an employee is injured during horseplay or activities unrelated to their work duties, they may not qualify for workers’ comp benefits. However, there can be exceptions if the horseplay is deemed minor or part of workplace culture.
• Criminal Acts: If the injury occurs while the employee is engaged in illegal activities, such as theft or drug use, workers’ comp benefits may be denied.
• Substance Abuse: Pennsylvania law allows employers to deny claims if the injury is a direct result of the employee being under the influence of drugs or alcohol at the time of the accident.

Understanding these and other exceptions can help employees avoid pitfalls when filing a claim and ensure they maintain eligibility for workers’ comp benefits.

FAQs for Recipients of SSD and Workers’ Compensation

Does Returning to Work Affect Eligibility for Both Programs?

Returning to work part-time may not disqualify you from workers’ comp but could affect your SSDI if your earnings exceed the Substantial Gainful Activity (SGA) limit.

Can I Switch to Social Security Retirement Benefits to Avoid Offsets?

Yes, once you reach full retirement age, SSDI converts to retirement benefits, which are not subject to the workers’ comp offset.

What Happens if My SSDI Claim is Denied But I Receive Workers’ Compensation?

Receiving workers’ comp does not guarantee SSDI eligibility. If your SSDI claim is denied, you can appeal with the help of an experienced attorney to ensure your case is presented effectively.

Are There Any Exceptions to Workers’ Comp Coverage?

Yes. Workers’ comp claims can be denied if the injury results from horseplay, substance abuse, intentional self-harm, or other disqualifying actions such as violating company policy.

Can I Appeal if My SSD or Workers’ Compensation Claim is Denied?

Yes, both SSD and workers’ compensation denials can be appealed. For SSDI, you can request a reconsideration, a hearing before an Administrative Law Judge, and further review if necessary. 

For workers’ compensation, you can file a petition with the Pennsylvania Workers’ Compensation Bureau to challenge a denial. If your employer disputes your claim, you have the right to file a petition with the Bureau. You can request a hearing before a workers’ compensation judge to present evidence and resolve the dispute. 

An attorney can help you gather documentation and represent you throughout the process.

Can My Workers’ Compensation Benefits be Terminated?

Yes, workers’ comp benefits can be terminated if:

• You return to work full-time.
• A doctor determines you are no longer disabled or have reached maximum medical improvement (MMI).
• You fail to comply with treatment plans or miss required medical evaluations.

If your benefits are terminated unfairly, you have the right to appeal through the Pennsylvania Workers’ Compensation Bureau.

Are Workers’ Comp and SSDI Payments Adjusted for Inflation or Cost-of-Living Increases?

Yes, SSDI benefits are adjusted annually through cost-of-living adjustments (COLA). For 2025, benefits increased by 2.5%. Workers’ comp benefits in Pennsylvania, however, are not automatically adjusted for inflation.

How Can I Discuss Workers’ Compensation With a Disability Attorney?

If you have questions about how drawing workers’ compensation benefits could affect your SSD eligibility, call Berger and Green today. We offer free case evaluations and consultations. We represent clients for Social Security Disability claims in Pittsburgh, Pennsylvania, and nearby areas, parts of Ohio, and West Virginia.

You can contact our legal team today by calling or completing our online contact form.