Monthly payment amounts for New Jersey disability
New Jersey Temporary Disability Insurance (TDI) replaces part of your lost wages while you cannot work due to illness or injury. The program pays between 40% and 66.67% of your average weekly wage, up to a state maximum. The exact amount depends on how much you earned before you stopped working and which program covers you — TDI for private-sector workers or State Disability Benefits (SDB) for public employees.
The maximum weekly benefit amount changes each year. For 2024, the TDI maximum is $993 per week, which equals roughly $4,305 per month if you receive the full benefit for a complete month. Most workers receive less than the maximum because their prior earnings were lower. You receive payments for up to 26 weeks in a benefit year, though some workers with longer disabilities may receive extensions.
Payments arrive by direct deposit or debit card, usually within 10 to 14 days after your claim is approved. The state does not backdate payments to the date you stopped working — your benefit period starts on the date the Division of Temporary Disability Insurance receives your completed claim form, not the date of your injury or illness.
Key Takeaways
- New Jersey TDI pays 40% to 66.67% of your average weekly wage, with a 2024 maximum of $993 per week, depending on your prior earnings and which program covers you.
- The exact amount you receive is calculated from your earnings in the base year — typically the first four of the five calendar quarters before you file your claim.
- Payments begin on the date your claim is approved, not the date you became disabled, so filing quickly matters for your timeline.
- You can receive TDI for up to 26 weeks in a benefit year, and some workers with serious conditions may receive additional weeks through extensions.
- If you work part-time or earn money while receiving TDI, your benefit amount is reduced by the amount you earn above a small threshold.
How the state calculates your weekly benefit amount
The Division of Temporary Disability Insurance looks at your gross wages from a specific time period called the base year. For most workers, the base year is the first four of the five calendar quarters before you file your claim. If you were not working during that period, the state may use a different base year — ask the claims examiner which quarters they used for your case.
The division divides your total base-year earnings by 52 to find your average weekly wage. It then pays you 40% of that amount if you have a non-work-related disability, or 66.67% if your disability is work-related. The result is your weekly benefit amount, capped at the state maximum. If you earned very little during the base year, your weekly benefit will be lower than the maximum.
Part-time and seasonal workers often have lower benefit amounts because their base-year earnings are lower. Self-employed workers do not may have access to for TDI unless they chose to participate in the program before they became disabled — this is a decision made when you first start self-employment, not something you can change after an injury or illness.
What happens if you earn money while receiving benefits
You can work part-time and still receive TDI, but your benefit is reduced. The state allows you to earn up to $308 per week (as of 2024) without any reduction to your TDI payment. Any earnings above that amount reduce your TDI dollar-for-dollar. For example, if your weekly TDI benefit is $600 and you earn $400 per week, you lose $92 of your TDI ($400 minus $308 threshold equals $92).
You must report all earnings to the Division of Temporary Disability Insurance. If you do not report work income and the state discovers it later, you may be required to repay benefits you received. The state cross-checks TDI claims against wage records from employers, so unreported work is usually found during routine audits.
Some workers return to work gradually — for example, working two days per week while still recovering. If your part-time earnings plus your reduced TDI benefit add up to more than you earned before disability, you may want to discuss this with a claims examiner to understand the full picture of your income.
Maximum and minimum benefit amounts by year
| Benefit Year | Maximum Weekly Benefit | Approximate Maximum Monthly |
|---|---|---|
| 2024 | $993 | $4,305 |
| 2023 | $959 | $4,156 |
| 2022 | $924 | $4,004 |
The maximum benefit amount is set by state law and increases each year based on changes in average wages. The minimum weekly benefit is $100 for non-work-related disabilities and $200 for work-related disabilities, though most workers receive more than the minimum.
If you are receiving the maximum benefit, your payment does not increase if your earnings were higher than the amount used to calculate the maximum. The state caps all benefits at the annual maximum regardless of prior income.
How long you receive payments
TDI pays for up to 26 weeks in a benefit year, which runs from July 1 to June 30. If your disability lasts longer than 26 weeks, your benefits end unless you meet the criteria for an extension. Extensions are available for workers with serious conditions — your doctor must certify that you remain unable to work, and you must request the extension before your initial 26 weeks end.
If you return to work before 26 weeks have passed, your benefits stop. You do not receive a lump sum for unused weeks. If you become disabled again later in the same benefit year, you may be able to file a new claim for the remaining weeks, but this depends on whether your new disability is related to the first one.
Workers who receive workers' compensation for a work-related injury may not receive TDI at the same time. The state requires you to choose one program or the other. If you are receiving workers' compensation, you cannot also collect TDI for the same disability.
Public employees and State Disability Benefits
If you work for a New Jersey state agency, county government, or certain municipal employers, you are covered by State Disability Benefits (SDB) instead of TDI. SDB follows similar rules — it pays 40% to 66.67% of your average weekly wage, up to a state maximum — but the program is administered separately and has slightly different procedures.
SDB also pays for up to 26 weeks per benefit year and uses the same base-year calculation as TDI. The maximum weekly benefit amount is the same as TDI. If you are unsure whether you are covered by TDI or SDB, check your pay stub or contact your employer's human resources department.
Tax treatment of disability benefits
New Jersey TDI and SDB benefits are generally not subject to federal income tax. The state does not withhold federal taxes from your payments. However, if you receive other income during the same year — such as wages from part-time work, unemployment benefits, or self-employment income — you may owe federal taxes on that income.
You do not pay New Jersey state income tax on TDI or SDB benefits. Some workers mistakenly assume they will owe taxes and set money aside; this is not necessary for the disability benefit itself, though you should track any other income you earn during the benefit period.
Frequently Asked Questions
Can I receive TDI if I was laid off or quit my job?
No. TDI covers workers who cannot work due to illness or injury, not workers who are unemployed. If you lost your job and are not disabled, you may be able to file for unemployment insurance instead. If you became disabled after losing your job, you can file for TDI, but your benefit amount will be based on earnings from before the job loss.
What if my disability started before I filed my claim?
Your benefit period begins on the date the Division of Temporary Disability Insurance receives your completed claim, not the date you became disabled. If you became disabled on January 1 but did not file until January 15, your first payment covers the period starting January 15. The state does not backdate benefits to January 1. Filing as soon as possible after you stop working protects your timeline.
Do I have to repay TDI if I return to work sooner than expected?
No. If you recover and return to work before your 26 weeks end, you straightforward stop receiving payments. You do not owe money back. However, if you received payments while working and did not report your earnings, you may be required to repay the portion of benefits you were not may have access to to receive.
Can my employer reduce my TDI benefit?
No. TDI is a state insurance program funded by payroll deductions, not an employer benefit. Your employer cannot reduce or deny your benefit. However, your employer can require you to use accrued paid leave (vacation or sick time) while you receive TDI — this is separate from the state benefit and is governed by your employment contract.
What if I disagree with the amount I was paid?
Contact the Division of Temporary Disability Insurance and ask for a detailed breakdown of how your benefit was calculated. Request the base-year earnings they used and the weekly wage they derived from those earnings. If you believe the calculation is wrong, you can file an appeal. The state will review your wage records and issue a written decision explaining the benefit amount.