Subsidy Overview
A Subsidy is a Social Security Work Incentive that looks at on-the-job support and accommodations provided by an employer.
Here are examples of when Social Security might consider your work to be ‘subsidized’ by your employer:
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You need extra or longer breaks. -
Your work duties are modified. -
Your employer has a different expectation of your productivity compared to coworkers doing similar work. -
You use special equipment to complete your work. -
You work fewer hours than your coworkers.
How does it help?
A Subsidy helps determine what percentage of your earnings should be counted when Social Security makes a Substantial Gainful Activity (SGA) decision.
When does it apply?
Subsidies are looked at during the following situations and work phases:
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Application for benefits (for SSI and Title II) -
Extended Period of Eligibility -
Post-Extended Period of Eligibility
Subsidies are not looked at during the Trial Work Period. Also, Subsidies do not affect SSI cash benefit calculations.
How to Establish a Subsidy with Social Security
Step 1:
Have a conversation with the employer about what a subsidy is, how it will benefit you, and how subsidy amounts are determined. We recommend that an Employment Support Professional (job coach) take the lead with this conversation.
It is important to share with your employer that a subsidy percentage does not reflect the value that you bring to the employer or workplace. It is simply a reflection of your need for accommodation as compared to their coworkers in similar roles.
Step 2:
Ask the employer, an Employment Support Professional, or a teacher to write a letter which describes in detail your work duties and accommodations. Here is a sample.
Note: in some situations, Social Security may also request a Work Activity Questionnaire to be completed by a support professional or the employer.
Tip:
You may also be eligible for other work incentives, such as Special Conditions or IRWEs. Consider gathering information about all the work incentives that you may be eligible for and submit the information to Social Security as one “package.”
A benefits planner and other members of your team can help you identify which work incentives apply to your situation.
Step 3:
The Subsidy and other work incentive information can be submitted to your local Social Security office via fax, mail, or in-person for review.
When mailing a letter, consider sending it via certified mail so that you will receive a receipt when it is delivered to the office. Be sure to keep a copy of the letter for your records and any confirmation of receipt by the Social Security office.
Step 4:
Follow up with the local Social Security office to ensure that the work incentive has been approved and applied to your record. It can sometimes take a few weeks to a few months to be approved.
Subsidy Example - Joanna
Note: in 2026, SGA is measured as $1,690 (non-blind) / $2,830 (blind) in countable monthly earnings.
Joanna, who is not blind, is earning $2,000 per month.
Based on wages alone, it appears Joanna is earning over SGA. She may be at risk of losing her Title II cash benefit.
Earnings alone, however, do not tell the whole story. Social Security must look at Subsidies and other work incentives to fully understand Joanna’s work ability.
Joanna’s employer determines that, based on her work supports and accommodations, her overall work productivity is at 70% when compared to coworkers doing similar work. This indicates a 30% Subsidy.
The employer and the Employment Support Professional write a letter documenting Joanna’s Subsidy and mail it certified to Joanna’s local Social Security office.
Social Security approves the Subsidy and applies it to Joanna’s gross earnings: $2,000 gross earnings x 70% = $1,400 countable earnings. Because Joanna’s countable earnings are below SGA ($1,690 non-blind), she is eligible for a Title II cash benefit for the month.
Tips
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Always keep copies and records related to what and when information is submitted to Social Security. -
Contact Social Security approximately 10 days after submitting the documentation to ensure that it has been received. -
Subsidies can be applied retroactively. If Social Security decides you worked at SGA in the past, you may be able to let them know about a Subsidy they were unaware of and change their decision. -
If you have a promotion, change of job, or change in duties, you will need to submit new subsidy documentation to Social Security. -
Check in with the local Social Security office on an annual basis to confirm that the Subsidy is still in place.