Every California paycheck has a small SDI line. State Disability Insurance funds short-term disability benefits and Paid Family Leave. The wage cap was removed in recent years, so high earners now see the deduction on every dollar.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.
What SDI funds
California State Disability Insurance covers two programs:
- Disability Insurance (DI): short-term wage replacement for non-work-related illness, injury, or pregnancy.
- Paid Family Leave (PFL): wage replacement for time off to bond with a new child or care for a seriously ill family member.
The rate
Employee contribution percentage is set annually by the California EDD. The 2024 rate was 1.1 percent of wages with no cap (the wage cap was removed in 2024). Verify the current year at edd.ca.gov.
Cap removal
Before 2024, SDI applied only up to an annual wage base. Starting 2024, the cap was removed. High earners now see SDI on every dollar of California wages.
Benefit amount
Roughly 60 to 70 percent of weekly wages, capped at a state-set maximum. Specific replacement rate depends on income tier.
Stub label
Common labels: CA SDI, SDI, CA-DIS.
Authoritative source
California Employment Development Department (EDD)