Self-Employed in California? How to Get Paid Leave With Elective SDI (2026)
If you get a W-2, money for paid leave comes out of every paycheck. It shows up on your pay stub as CA-SDI.
If you work for yourself or get a 1099, it usually does not. That means you are not covered for state paid leave by default. But you can choose to pay in.
What is Elective Coverage?
The EDD runs a program called Disability Insurance Elective Coverage, or DIEC. It lets self-employed people pay into the state program. Once you are covered, you can get disability pay (SDI) and Paid Family Leave (PFL), like a W-2 worker.
Who can sign up
According to the EDD, you need to:
- Own a business, be self-employed, or be an independent contractor
- Make at least $4,600 a year in net profit
- Get most of your income from that business
- Have a business that is not seasonal
- Hold any license your work requires
- Be able to do all your normal work full time when you apply
Limited partners and corporate officers cannot use this program.
What it costs in 2026
For 2026, the cost is 8.84% of your 2024 net profit. If your net profit was $4,600 or less, the cost is $406.64 for the year. You pay each quarter.
Once you join, you must stay in for 2 full calendar years, unless you close your business or move out of California.
What you could get
In 2026, weekly benefits range from $50 to $1,765. Your amount is based on the net profits you reported to the IRS in past years, not just what you earn now.
PFL can pay up to 8 weeks of bonding time in a 12-month period.
Plan ahead
This works best when you sign up well before you need it. If you are already pregnant, ask the EDD how that affects your coverage before you enroll. Rules can change, so check the current EDD pages.
What if you are paid through your own S-Corp?
If your business is an S-Corp and you pay yourself a W-2 salary, SDI may already come out of your paycheck. Check your pay stub for CA-SDI. If it is there, you may already be covered like any W-2 worker.
Does your partner have a W-2 job?
Even if you are not covered, your partner may be. A partner with CA-SDI on their pay stub can get up to 8 weeks of paid bonding time. Read Can My Partner Take Paid Leave in California?.
Your next step
The free 25-minute training explains how SDI and PFL work and how they fit with job protection, so you can plan your family's leave with confidence.
Based on EDD guidance as of 2026. This is education, not legal, tax or financial advice. The EDD decides if you qualify and how much you get.
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