Many veterans face disabling conditions that affect both their civilian employment and their long-term ability to work. Some injuries happen on the job after leaving the military, while others stem directly from service-connected conditions recognized by the Department of Veterans Affairs (VA). Because of this overlap, a common and important question arises: Can a veteran receive workers’ compensation benefits and VA Total Disability based on Individual Unemployability (TDIU) at the same time?
The short answer is yes in most cases, veterans can collect both benefits simultaneously without reduction. However, understanding why this is allowed, how the systems differ, and what pitfalls veterans must avoid is crucial to protecting long-term income and benefits.
This article breaks down how workers’ compensation and TDIU work, how they interact, and what veterans should consider in 2025 when receiving both.
Overview: Workers’ Compensation vs. VA TDIU
| Category | Workers’ Compensation | VA TDIU |
|---|---|---|
| Administered By | State governments | U.S. Department of Veterans Affairs |
| Purpose | Covers civilian job-related injuries | Compensates veterans unable to work due to service-connected disabilities |
| Employment Required | Injury must occur at civilian job | Veteran must be unable to maintain substantially gainful employment |
| Tax Status | Varies by state | Tax-free |
| Offset with Other Benefit | No VA offset | No workers’ comp offset |
| Affected by Work Income | Yes (return-to-work rules) | Yes (gainful employment rules) |
Understanding Workers’ Compensation Benefits
Workers’ compensation is a state-run insurance system designed to support employees who suffer injuries or illnesses while performing their civilian job duties. It applies equally to veterans and non-veterans.
What Workers’ Compensation Covers?
Workers’ compensation generally provides:
- Wage replacement for missed work
- Medical treatment related to the injury
- Rehabilitation and therapy services
- Disability payments (temporary or permanent)
A veterans benefits advocate explained that “workers’ comp is tied strictly to civilian employment it doesn’t look at military service at all, which is why it usually does not conflict with VA disability programs.”
Workers’ compensation does not:
- Cover military service injuries
- Require a VA disability rating
- Determine long-term employability beyond the work injury
Understanding VA TDIU Benefits
VA Total Disability based on Individual Unemployability (TDIU) allows veterans to be paid at the 100 percent disability rate, even if their combined VA rating is lower, when service-connected conditions prevent them from maintaining substantially gainful employment.
Schedular TDIU Criteria
Veterans may qualify if they have:
- One service-connected disability rated at 60% or higher, or
- Multiple disabilities with a combined rating of 70%, with one disability rated at least 40%
Extraschedular TDIU
Veterans who do not meet the above thresholds may still qualify if their service-connected conditions clearly prevent employment. This requires additional review and evidence.
As one VA-accredited attorney often notes, “TDIU doesn’t ask whether you’re injured it asks whether your service-connected disabilities realistically allow you to work in a competitive job market.”
Can You Receive Workers’ Compensation and TDIU at the Same Time?
Yes. In most cases, veterans can receive both workers’ compensation and VA TDIU benefits simultaneously.
The key reason this is allowed is that:
- Workers’ compensation focuses on civilian employment injuries
- TDIU focuses only on service-connected disabilities
The benefits come from entirely separate legal systems, governed by different laws, agencies, and eligibility rules.
Importantly:
- VA does not offset or reduce TDIU payments because of workers’ compensation
- State workers’ compensation agencies do not reduce benefits due to VA TDIU
This separation protects veterans from losing benefits simply because they qualify for both programs.
Does Workers’ Compensation Count as “Employment” for TDIU?
No. Workers’ compensation payments do not count as substantially gainful employment for VA purposes.
VA only evaluates whether a veteran is:
- Actively working, and
- Earning income above the federal poverty threshold
Workers’ compensation benefits are considered disability compensation, not wages earned from employment.
A veterans law professional summarized it this way:
“Receiving workers’ comp doesn’t mean you’re capable of working it means you were injured doing a job, often because you can’t continue working.”
Payment and Income Considerations
Income Comparison
| Income Type | Counts as Employment for VA? | Affects TDIU? |
|---|---|---|
| Workers’ comp payments | No | No |
| VA disability compensation | No | No |
| Social Security Disability | No | No |
| Wages from employment | Yes | Yes |
| Sheltered or protected work | Sometimes | Case-specific |
Veterans can receive full TDIU payments while receiving workers’ compensation, provided they are not working above the poverty threshold or in unprotected employment.
What About Returning to Work While on Workers’ Compensation?
This is where caution is required.
If a veteran:
- Returns to work, and
- Earns income above the poverty threshold,
VA may review or terminate TDIU eligibility.
However, each situation is fact-specific. VA considers:
- Hours worked
- Job accommodations
- Whether employment is “protected” or marginal
A VA representative often reminds claimants, “TDIU isn’t about whether you tried to work it’s about whether you can sustain meaningful employment without special protection.”
Common Scenarios Where Veterans Receive Both Benefits
Veterans often qualify for both workers’ comp and TDIU when:
- A service-connected condition worsens due to a civilian job injury
- VA-rated disabilities prevent return-to-work after a workplace injury
- PTSD, TBI, or chronic pain limits consistent employment
In these cases, workers’ compensation may provide short-term wage replacement, while TDIU provides long-term VA income security.
Why This Matters for Veterans?
Understanding that workers’ compensation and TDIU can coexist provides:
- Financial stability during injury recovery
- Long-term income protection for disabled veterans
- Greater confidence when filing claims
A veterans advocate put it plainly:
“Too many veterans delay or avoid filing TDIU claims because they’re afraid of losing workers’ comp. That fear is usually unnecessary and costly.”
FAQs
Can VA reduce TDIU if I get workers’ compensation?
No. VA does not offset TDIU due to workers’ compensation benefits.
Does workers’ compensation count as income for TDIU?
No. It is not considered substantially gainful employment.
Can I qualify for TDIU if I’m receiving workers’ comp?
Yes, if service-connected disabilities prevent gainful employment.
What if I return to work after workers’ compensation?
Returning to work may affect TDIU, depending on earnings and job protections.
Do state workers’ compensation agencies care about VA TDIU?
Generally no. These systems operate independently.
