What is State Disability Insurance (SDI)?

SDI is a state-run insurance program that provides short-term disability benefits to workers who cannot work due to non-work-related illness, injury, or pregnancy. Only 5 states mandate SDI: California (1.1% of wages), New York (0.5%), New Jersey (variable), Rhode Island (1.1%), and Hawaii (0.5%). In California, SDI also covers Paid Family Leave (PFL). This deduction appears on your paystub as SDI or CASDI.