How does the workers’ comp offset work?

SSA adds your monthly workers’ compensation to your SSDI benefit. If the total exceeds 80% of your average current earnings before disability, your SSDI check is reduced by the overage. In a few “reverse offset” states, the workers’ comp payment is reduced instead.

Does a lump-sum workers’ comp settlement avoid the offset?

No. SSA prorates lump-sum settlements as if they were paid monthly and applies the same 80% test. How the settlement allocates money (for example, to future medical costs) can affect the calculation, so report any settlement to SSA promptly.

When does the workers’ comp offset end?

Generally when your workers’ compensation payments stop, or when you reach full retirement age and your SSDI converts to a retirement benefit. Report changes to SSA right away — unreported workers’ comp is a common cause of overpayments you would later have to repay.

How big is the workers’ compensation system?

Per the National Academy of Social Insurance's report covering 2023, workers' comp paid $64.1 billion in benefits across nearly 150 million covered jobs, with employers paying an average of $0.98 per $100 of covered payroll. About 47% of benefits paid for medical care.

Workers' Comp and SSDI: New Data and the 80% Rule

Q: Can you collect workers’ comp and Social Security disability at the same time?

Yes, if you qualify for both — workers' comp covers job-caused injuries under state law, while SSDI covers total disability from any cause. But a federal rule generally caps the combined benefits at 80% of your average pre-disability earnings, with SSA reducing the SSDI payment by any excess.

A new national report says workers' comp paid $64.1 billion in benefits in 2023 — and if you ever collect workers' comp and SSDI together, a federal rule caps the combined total at 80% of your pre-disability earnings. Here's how the two programs fit together.

Workers' compensation paid $64.1 billion in benefits in 2023 across nearly 150 million covered jobs, according to a new national report — and if you ever collect workers' comp and Social Security disability at the same time, a federal rule caps the combined total at 80% of your pre-disability earnings. The National Academy of Social Insurance (NASI) released its 28th annual workers' compensation report on August 11, 2026. Here are the numbers, and — more practically — how workers' comp and SSDI actually fit together.

What the new report shows (2023 data)

$64.1 billion in total workers' compensation benefits paid
Nearly 150 million jobs covered, with close to $11 trillion in covered wages
Employer costs averaged $0.98 per $100 of covered payroll — costs fell in 43 of 51 jurisdictions from 2022 to 2023
47% of benefits went to medical care; the rest were cash wage-replacement payments
Private insurers paid 55.6% of benefits, self-insured employers 25.6%, state funds 13.3%, and federal programs 5.5%

Workers' comp is a state-run system (each state sets its own rules), which is why coverage and costs vary so much by jurisdiction.

Workers' comp vs. SSDI: two different programs

They're often confused, but they answer different questions:

	Workers' compensation	SSDI
Run by	Your state (employer-funded insurance)	Federal government (payroll taxes)
Covers	Injuries and illnesses caused by your job	Total disability from any cause
Duration	Often temporary or partial	Long-term, until recovery or retirement age
Medical care	Pays treatment for the work injury	No — but leads to Medicare after 24 months

A serious work injury can qualify you for both — workers' comp because the injury happened on the job, and SSDI if it leaves you unable to do substantial work at all.

The 80% offset rule

Here's the part that surprises people: you can't stack the two payments without limit. Under federal law, if you receive workers' compensation (or certain other public disability benefits) alongside SSDI, your combined benefits generally can't exceed 80% of your average current earnings before you became disabled. If the total goes over, SSA reduces your SSDI check by the excess — a reduction called the workers' compensation offset.

A simplified example: if your pre-disability earnings averaged $4,000 a month, your combined workers' comp + SSDI generally can't exceed $3,200. If workers' comp pays $2,200 and your SSDI would be $1,500 ($3,700 total), SSA trims the SSDI payment by about $500.

Two wrinkles worth knowing:

A handful of states run a "reverse offset" — the workers' comp payment is reduced instead of the SSDI check. Your state's rules determine which applies.
The offset usually ends when workers' comp stops or when you reach full retirement age and SSDI converts to a retirement benefit — so report any change in your workers' comp (start, stop, lump-sum settlement) to SSA promptly to avoid an overpayment you'd have to repay.

Lump-sum workers' comp settlements are prorated by SSA as if paid monthly, so a settlement doesn't sidestep the offset — but how the settlement paperwork allocates the money can affect the math, which is one reason people with both claims often get professional advice.

What it means for you

If you're hurt on the job and the injury looks long-term, it usually makes sense to pursue both claims — workers' comp for the injury and medical care now, SSDI for lasting income protection. Just plan around the 80% rule so the combined number doesn't surprise you: estimate your SSDI benefit with our free SSDI calculator, and if your claim is denied, appeal rather than reapply.

This article is general educational information, not legal or financial advice. Workers' compensation figures are from the National Academy of Social Insurance's Workers' Compensation: Benefits, Costs, and Coverage — 2023 Data (August 2026); offset rules are summarized from SSA Publication 05-10018 and may work differently in reverse-offset states. SocialSecurityNews.com is not affiliated with the SSA or NASI.