Can You Collect Social Security Disability and Workers’ Compensation at the Same Time?

How does a workers’ compensation settlement affect Social Security Disability benefits?

If you receive a lump sum settlement, the Social Security Administration prorates that amount over the rest of your life (according to their projections). This reduces your weekly income and, therefore, your possible offset amount. Therefore, in most cases, your Social Security Disability benefit amount should increase.

Can you collect Social Security retirement and workers’ comp at the same time?

Yes. Note that, in North Carolina, after 500 weeks, the amount of workers’ compensation wage benefits can be reduced based on the amount you receive in Social Security retirement benefits. These cases are rare and may soon be eliminated entirely.

Does workers’ comp count as income for Social Security?

First, Social Security retirement benefits are not reduced due to workers’ compensation benefits. Remember, Social Security retirement benefits and Social Security Disability Insurance are separate.

In most cases, SSDI benefits are offset due to the receipt of workers’ compensation funds. Workers’ compensation benefits are not taxable, and there should be no deductions made for payments into Social Security.

About the Author

Susan Vanderweert practices workers’ compensation law in North Carolina for the Law Offices of James Scott Farrin. Previously, she represented the other side – insurance companies and employers – but moved on to fight on behalf of employees. Susan is a North Carolina State Bar Board Certified Specialist in Workers’ Compensation Law, and she was selected by peers to the annual “Best Lawyers”a list for Workers’ Compensation Law in 2021 and 2022 by Best Lawyers in America.

aFor more information regarding the standards for inclusion, please visit