California State Disability Insurance (CA SDI) is a partial wage-replacement insurance program for eligible workers in California. It's a deduction from your paycheck, often labeled "CASDI" on your paystub, that helps fund the program. More than 18 million California workers are covered by it.
How CA SDI Works:
- Wage Replacement: SDI provides benefits when you cannot work due to a non-work related injury, illness, or pregnancy. It replaces part of your lost income.
- Payroll Deduction: SDI is funded by deductions taken directly from your paycheck.
- Not an Employment Benefit: It's important to understand that it is a social program, not an employer-sponsored benefit.
What CA SDI Is Not:
- Workers' Compensation: SDI is not the same as workers' compensation, which covers on-the-job injuries.
- Full Wage Replacement: It replaces only a portion of your regular wages.
- A Retirement Fund: CA SDI is not a retirement or pension program.
Examples of CA SDI Benefits:
CA SDI can provide benefits if you cannot work due to:
- Illness that is not work-related
- Pregnancy or childbirth
- An injury or disability that is not work related
Key Takeaways:
- CA SDI is mandatory for most California workers.
- It’s funded through a payroll deduction.
- It provides temporary financial support during times of non-work-related disability.
