CASDI shows up on every California employee's pay stub as a small deduction, and most employees don't look at it again until they need it. The program is run by California's Employment Development Department (EDD) and pays partial wage replacement when a non-work-related illness, injury, pregnancy, or Paid Family Leave event keeps someone out of work. Employers don't pay into CASDI directly, but they do withhold the contribution from employee paychecks. For 2026, the rate is 1.2% of wages with no wage cap, after California removed the taxable wage ceiling in January 2024.
How the CASDI Contribution Works in Payroll CASDI is funded entirely by the employee through mandatory payroll withholding. The 1.2% 2026 rate applies to every dollar of wages, so a California employee earning $120,000 contributes $1,440 over the year. Before 2024 the program had a wage cap (last set at $153,164), but SB 951 eliminated the cap to fund richer benefit formulas.
Employers report CASDI withholding on each pay period and remit quarterly through the EDD. California is one of only five states with a state disability program, alongside New York, New Jersey, Rhode Island, and Hawaii.
What CASDI Pays and Who Qualifies CASDI benefits run up to 52 weeks, with a waiting period of 7 days. For 2026, the program replaces 70% to 90% of weekly wages for lower-wage earners (up to $1,681 per week) and around 60% for higher earners. The richer replacement rate for low earners is one of the changes SB 951 paid for when the wage cap went away.
Employees qualify if they've earned at least $300 in a base period, can't do their regular work because of the condition, and are under the care of a licensed health professional. CASDI covers Disability Insurance (DI) and Paid Family Leave (PFL), which are administered as separate but linked benefits.
What's the Difference Between CASDI and Workers' Comp? CASDI covers non-work-related disabilities. Workers' compensation covers injuries or illnesses caused by the job. An employee injured lifting a box at home files a CASDI claim. An employee injured lifting a box at work files a workers' comp claim. The two programs don't overlap, and no one collects both for the same event.
How CASDI Coordinates With Other Leave CASDI often stacks with job protection from family and medical leave act (FMLA) and California's CFRA. CASDI pays money. FMLA/CFRA protects the job. Both can run at the same time during a serious health condition or parental leave. Employers frequently also offer a short-term disability plan that supplements CASDI to get closer to 100% of wages during the leave.
Employees with accrued sick leave can use it during the CASDI waiting period or as a supplement. Some employers require that sick leave be used first before CASDI kicks in.
Filing a CASDI Claim and Employer Responsibilities Employees file CASDI claims directly with EDD through SDI Online, which is the state portal at edd.ca.gov. They need medical certification from a licensed provider and a record of recent employment. Claims are usually decided within 14 days. Employer involvement is minimal: confirm wages when asked and manage the leave on the job-protection side.
For employer reference, the CASDI program rules, the 2026 contribution rate, and benefit calculator all sit at edd.ca.gov/Disability . Anyone administering California payroll should bookmark that page because California's rates and rules change every year.
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